Mortgage Investment team | RBC Global Asset Management

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Decline

We have been assisting institutional clients establish and manage customized mortgage-based solutions for more than 40 years. While our capabilities have evolved, the core investment philosophy that drives our approach continues to focus on protecting investor capital while aiming to consistently deliver stable returns. The Mortgage Investment Team comprises a group of specialists dedicated to designing and implementing mortgage solutions. The team is led by two portfolio managers with an average of 25 years of industry experience.

Glen Malcolm leads our mortgage investments platform and reports to RBC Global Asset Management (RBC GAM)’s Head of Private Investments, Michael Kitt. David Nygren specializes in and manages our conventional mortgage strategies. Glen manages our high yield mortgage strategy, while David and Glen co-manage our conventional plus mortgage strategy. Olivia Li supports the portfolio management team on credit analysis and setting origination guidance.

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Investment philosophy and style

Focus on capital preservation and consistent added value through market cycles
Significant breadth and diversification help mitigate mortgage-specific risk
Quality-biased, long-term approach with mortgages held to maturity

Investment process

Top-down origination strategy focused on portfolio construction and setting origination guidance
In-depth credit analysis drives individual investment decisions, including an assessment of property-specific and borrower-specific material ESG risk factors
Risk mitigation through negotiation of individual mortgage terms and structure, distinct to each investment decision
Proactive approach to risk management throughout the life of each mortgage which informs the team's origination strategy moving forward

Mortgages are secured by commercial real estate assets

Direct claim against a tangible asset
Mortgages can also include additional security like guarantees and other collateral support
Core property types include industrial, retail, office, and multi-residential apartment buildings

Most assets are income-producing with stable and predictable cash flows

Long-term leases provide forward visibility

There is no public market for trading direct commercial mortgages

Lenders typically have buy and hold strategy
Lenders predominately employ conservative underwriting standards to limit credit risk through term

Private markets are characterized by illiquidity and information asymmetry

Mortgage market inefficiencies can be capitalized on to improve returns
Investors are compensated with an illiquidity premium relative to other more liquid fixed income asset classes

Attractive asset class on a standalone basis or in the context of an overall portfolio

Most assets are income-producing and have a short duration

Multiple strategies

Opportunities to invest across the risk-return spectrum