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 RBC GAM Private Markets 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.
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