EDMONTON, June 29, 2011 /CNW/ - Carfinco Income Fund ("Carfinco" or the
"Fund") today announced that it will be servicing a $150 million loan
portfolio consisting of both prime and non-prime Canadian consumer
automotive loans owned by a US Equity Fund.
"Carfinco is well suited to service this portfolio having 14 years of
experience in originating and servicing loans in the non-prime
automotive sector," said Tracy Graf, CEO of the Fund. "We will be
servicing this portfolio in conjunction with administering our own
portfolio which is currently greater than $150 million and growing by
approximately 20% per year. Servicing this portfolio will generate
significant additional revenues for the Fund as well as provide
Carfinco insight into the performance of risk based pricing loans in
each of the Canadian provinces." The new portfolio is expected to wind
down over the next 24 to 36 months as the loans mature.
In conjunction with servicing this portfolio, Carfinco will be opening a
service center in Quebec. "Having a center in Quebec, working in
conjunction with our head office location in Edmonton will not only
assist in servicing this third party portfolio but will also increase
the effectiveness of Carfinco administering its own portfolio across
Canada," added Mr. Graf.
About Carfinco Income Fund
Carfinco focuses on providing consumer vehicle loans to borrowers unable
to obtain financing through traditional lending sources. A network of
select independent and franchise dealerships offer Carfinco's payment
plan to their customers who must, along with the vehicle, meet
Carfinco's underwriting guidelines. The units of the Fund trade on The
Toronto Stock Exchange under the symbol "CFN.UN".
Caution Regarding Forward-Looking Statements - This news release
contains certain forward-looking statements, including statements
regarding the business and anticipated financial performance of the
Fund. These statements are subject to a number of risks and
uncertainties. Actual results may differ materially from results
contemplated by the forward-looking statements. When relying on
forward-looking statements to make decisions, investors and others
should carefully consider the foregoing factors and other uncertainties
and should not place undue reliance on such forward-looking statements.
SOURCE Carfinco Income Fund
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