Investing in mortgages can provide a steady stream of income through interest payments which are distributed to investors. Mortgages with a fixed interest rate means that investors can expect a consistent return on their investment over the life of the mortgage.
Unlocking the Potential: How Adding Mortgage Exposure Can Enhance Your Investment Portfolio
A Mortgage Investment Entity (MIE) refers to an investment vehicle that specializes in investing in mortgages. MIEs can take various forms, including Mortgage Investment Corporations (MICs), Mortgage Investment Trusts (MITs), Limited Partnerships (LPs) or other structured investment vehicles.
The Alitis Private Mortgage Fund pools funds from multiple investors and use those funds to invest in a portfolio of MIEs, mortgages or publicly-traded mortgage-related securities. Mortgages can be residential or commercial and are typically provided to borrowers who do not meet traditional mortgage guidelines from banks or credit unions. These borrowers can include new Canadians, small business owners, developers, divorcees etc. Investing in mortgages can be a beneficial addition to a diversified investment portfolio.
How is the Alitis Private Mortgage Fund managed?
The Alitis Private Mortgage Fund investment strategy combines three different approaches to mortgage investing into one package:
- Private Mortgage Investment Entities – We start with a core of institutional and best-in-class private mortgage offerings to create a diversified foundation to mitigate risks.
- Publicly-Traded Mortgage Investments – We strive to enhance returns by trading in public mortgage securities when their valuation is favourable compared to private mortgages. Public securities also provide further liquidity for the fund.
- Direct Mortgages – We invest directly into specific mortgages to customize exposure, manage risk and enhance returns.