ACM Commercial Mortgage Fund - 2016 Fund Highlights and 2017 Distribution Setting

VANCOUVER, Jan. 4, 2017 /CNW/ -

2016 Fund Highlights
ACM Advisors Ltd. ("ACM") is pleased to announce for the year ended December 31, 2016, ACM Commercial Mortgage Fund (the "Fund") grew to $1.02 billion. Over the year, the total number of investments in the Fund increased to 96 as a result of 30 new mortgages totaling $389.4 million and 14 repayments totaling $53.8 million. This growth further diversified the Fund both by asset class and geography. The portfolio remains conservative with an overall loan-to-value ratio of 62% (62% as of December 31, 2015) and debt service coverage ratio of 1.61 times (1.52 times as of December 31, 2015). Importantly, all loans are current and being repaid as agreed.

Over the course of 2016, the yield on the 5 year Government of Canada bond increased 38 basis points to 1.11% while the yield on the 10 year Government of Canada bond increased 33 basis points to 1.72%.   

The Fund's total returns are comprised of two components: income (interest payments earned less Fund expenses incurred) and the change in net asset value. The net asset value of the Fund is impacted by changes in underlying bond yields and credit spreads. Credit spreads in the commercial mortgage market tightened during 2016, a trend experienced in the broader credit markets. The upward movement of underlying bond yields and the downward movement of credit spreads resulted in a -0.93% change in the net asset value of the Fund. Overall, the Fund's total returns, net of all fees and expenses, for the year ended December 31, 2016 were:

Class

Income

Change in NAV

Total Return

F and I

+3.73%

-0.93%

+2.76%

A

+3.46%

-0.93%

+2.50%

B, C, D, and E

+3.24%

-0.93%

+2.28%

Returns are compounded monthly and assume all distributions are reinvested in the Fund.

 

2016 Special Year-End Distribution
ACM Advisors Ltd. is pleased to announce that the ACM Commercial Mortgage Fund will provide December 31, 2016 unitholders of record with a special year-end distribution of $0.242 per unit, in addition to their regular monthly distribution.  This special distribution represents additional interest and fee income generated by the Fund over the year.

2017 Distribution Setting
As a mutual fund trust, the Fund distributes all income to its unitholders. The monthly distribution per unit is set based on an estimate of the Fund's income for the calendar year and is reflective of current and anticipated interest rates, credit spreads and Fund growth. As a result of these projections, the current monthly distribution levels will be maintained:

  • Class F and Class I

32.5 cents per unit

  • Class A

30.0 cents per unit

  • Class B, Class C, Class D, and Class E

28.0 cents per unit

 

About the Fund
ACM Commercial Mortgage Fund is a pooled commercial mortgage fund available for investment by institutional and private investors. The Fund's objective is to generate stable income flows while protecting investor capital. The Fund is invested in a diversified portfolio of conservative mortgages secured by retail, office, industrial and multi-family properties located in urban and suburban markets across Canada.

About the Manager
ACM Advisors Ltd. is a fund management company specializing in the origination and underwriting of Canadian commercial mortgages. ACM Advisors Ltd. has over $2 billion in assets under management and administration in four pooled investment funds. All investments in funds managed by ACM Advisors Ltd. are prudently underwritten in accordance with its comprehensive underwriting guidelines. The combination of the Manager's experience and guidelines has resulted in a 20+ year track record of never having experienced a loan loss in any of its funds.

This news release has been prepared for informational purposes only and should not be construed as a solicitation for, or offering of, an investment in securities in any jurisdiction where such offer or solicitation would be prohibited. The ACM Commercial Mortgage Fund is an exempt market security; prospective investors are advised to read the Offering documents and to consult with an independent financial advisor prior to making any investment decision based on this document. Minimum investment varies by province. The indicated rates of return are the historical compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any Unitholder that would have reduced returns. Mutual funds are not guaranteed or covered by a government deposit insurer; their values fluctuate frequently and past performance may not be repeated. The rates of return shown in the document are not intended to reflect future value of the Fund or future returns on investment in the Fund. Commission, trailing commissions, management fees and expenses all may be associated with mutual fund investments. ACM takes reasonable steps to provide up-to-date, accurate and reliable information, and believes the information to be so when presented, information obtained from third parties is believed to be reliable, but no representation or warranty, express or implied, is made by ACM, its affiliates or any other person as to its accuracy, completeness or correctness. ACM Advisors Ltd. does not guarantee the accuracy, completeness, or timeliness of the information and documents. E&OE.

SOURCE ACM Advisors Ltd.

For further information: ACM Advisors Ltd., Lezlie Mintz, Vice President - Business Development, Ph: 647-748-6242 or 604-661-0663, lmintz@acma.ca, www.acma.ca

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