For the fiscal year ending June 30, 2014, the fund has paid the following returns:
- For income investors who are taking monthly distributions, the fund has paid a yield averaging 8.22%.
- For growth investors, the cumulative compounded yield since July 2013 is 8.54%.
The fund portfolio is comprised of 85% residential property loans and 15% commercial and other. The weighted average loan-to-value at the time the loans were made is 61%. Many of the loans were made on assets being improved by the borrowers, so the actual current loan-to-value exposure is likely less.
The markets where we are lending continue to be hot, with strong demand fueled by low inventory. We are aware of reports in some circles predicting a softening of the market next year, which is why we continue our conservative underwriting guidelines and maintain our relatively low loan-to-value exposure.
The broker, Pacific Private Money Inc., continues to invest strongly in marketing and advertising. Through radio, print and other media, we spend aggressively to insure that our phones continue to ring with strong deal flow. This allows us to be judicious in our loan selection; our most recent office survey shows that our approval rate is 1 out of 8 loan applications.
Note: This is a reminder to please note that past performance is not a guaranty of future results. Your results may vary from the numbers stated above.