We have been assisting institutional clients to establish and manage commercial mortgage allocations for more than 50 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 RBC GAM Private Markets Mortgage Investment team is comprised of 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.
David Nygren leads our mortgage investments platform, and Glen Malcolm manages our mortgage strategies alongside David. Evan Ward is a senior manager with over 15 years’ experience in mortgage origination and credit due diligence, with a specific focus on construction lending. Evan and associate portfolio managers Olivia Li and Graeme Saunders support the portfolio management team on credit analysis and setting origination guidance.
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