When you think of the financial sector, “trust” isn’t the first word that comes to mind. Too often, big banks and self-interest stand in the way of what’s right for investors but we pride ourselves on a more sensible approach. The principles of Tri City invest their money right alongside the investors, so that our success and their success are one and the same. It’s an approach Tri City has used for over fifty years, one that’s given their investors steady returns year after year.
The Monthly Income Mortgage Trust has come about as a result of a fifty-year learning curve undertaken by the Goodman family in the private mortgage investment field. It is designed as a capital preservation strategy which also returns a reasonable amount of monthly income without taking unreasonable risks. It is a diversified investment in the real estate field which is made up of scores of mortgage contracts over largely condominiums, town home and single-family dwellings. These mortgage contracts commit the borrower to paying a specific amount of interest, which is guaranteed by what are carefully selected residential properties, which Tri City call’s liquid properties because they can be readily marketed. These mortgage contracts in-turn are backed up by the personal guarantees of the borrowers and in many instances the couple who may own the property. These properties are located largely in Greater Vancouver.
There are a number of different types of units in the trust, some of which distribute income in priority to the common units and due to this fact are projected to pay a slightly lower return. In addition, the priority units are more likely to receive their distribution than the common units. See the waterfall diagram and the pie chart to get a better understanding of why the priority units are thought to be more likely to receive their distributions.
If you are a cautious investor and you select the prioritized units you will receive your income in priority to the managers and their families who are all invested in the common units. As of January 2nd, 2019. The prioritized units have been distributed 6.65%*. If projected ahead on an annualized basis. The common units have been hitting their target of 8%* since May of 2018.
- View an explanation of the types of units here
- View waterfall illustration of how the units are prioritized here
- See a pie chart of the ratio of investors in each unit here