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About Our Funds

The Funds are offered by RBC GAM Inc. and distributed through authorized dealers. Commissions, trailing commissions, management fees and expenses all may be associated with the Funds. Please read the offering materials for a particular fund before investing. The performance data provided are historical returns, they are not intended to reflect future values of any of the funds or returns on investment in these funds. Further, the performance data provided assumes reinvestment of distributions only and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. The unit values of non-money market funds change frequently. For money market funds, there can be no assurances that the fund will be able to maintain its net asset value per unit at a constant amount or that the full amount of your investment in the fund will be returned to you. Mutual fund securities are not guaranteed by the Canada Deposit Insurance Corporation or by any other government deposit insurer. Past performance may not be repeated. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns. RBC ETFs do not seek to return any predetermined amount at maturity. Index returns do not represent RBC ETF returns.

About RBC Global Asset Management

RBC Global Asset Management is the asset management division of Royal Bank of Canada ("RBC") which includes the following affiliates around the world, all indirect subsidiaries of RBC: RBC GAM Inc. (including Phillips, Hager & North Investment Management and PH&N Institutional), RBC Global Asset Management (U.S.) Inc., RBC Global Asset Management (UK) Limited, RBC Global Asset Management (Asia) Limited, BlueBay Asset Management LLP, and BlueBay Asset Management USA LLC.

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This website may contain forward-looking statements about general economic factors which are not guarantees of future performance. Forward-looking statements involve inherent risk and uncertainties, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement. All opinions in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility.

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The Canadian Conventional Plus Mortgage strategy provides investors with access to liquidity premiums and credit premiums through investments in a portfolio of first mortgages and subordinate mortgage on property located in Canada. It capitalizes on the strongest risk-reward opportunities, either senior or subordinate, available in the conventional plus market, and the credit risk profile of the strategy can be adjusted depending on the market environment. The strategy aims to deliver a higher yield than conventional mortgage strategies, and has a focus on first-rank mortgages (income producing and non-income producing).

Strategy overview

  • Conventional plus, senior and subordinate mortgages on commercial and multi-residential properties in Canada
  • Flexibility to react to market mispricing and to structure mortgages with strong risk-adjusted returns
  • Returns driven by liquidity premiums and credit premiums
  • Liquidity restrictions provide better investor alignment and reduces cash drag on returns

Our approach

Investment philosophy and style

  • Focus on capital preservation and consistent added value through market cycles
  • Capitalize on mispriced pockets of opportunity across conventional plus senior and subordinate mortgages
  • Quality-biased with a tilt to senior mortgages

Investment process

  • Strategic focus on conventional plus segment of Canadian commercial mortgage market
  • Investing in individual mortgages senior income producing and non-income producing mortgages, as well as subordinate mortgages
  • Portfolio managers dictate asset mix to capitalize on market opportunities and inefficiencies
  • Individual mortgage diligence is bottom-up and reactive throughout credit and negotiation process
  • Risk mitigation through deal-specific loan structure
  • Proactive approach to risk management throughout the life of each mortgage

Portfolio construction

  • Mortgages with a maximum loan-to-value ratio of 85%
  • Maximum 10% in a single individual mortgage
  • Maximum 10% single borrower limit
  • Maximum term to maturity of 15 years
  • Despite being a ‘lend and hold’ strategy; risk profile can be adjusted relatively quickly
  • Quarterly gated redemptions with early redemption penalties in first three years of investment
  • Derivatives are not permitted
  • Ability to utilize operating leverage to manage cash flows (effective March 31, 2022)

Additional information

April 2019
Primary benchmark
FTSE Canada Short Term Overall Bond Index
Canadian Investment Fund

Investment team

RBC GAM Private Markets Mortgage Investment team

Group of specialists dedicated to designing and implementing mortgage solutions

Connect with our team to learn more

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