Three years ago, Foyston, Gordon & Payne Inc. (FGP) launched the FGP Mortgage Fund, a strategic initiative designed to capitalize on the evolving market landscape. The timing was ideal, according to Ryan Domsy, Head of FGP’s fixed income team and the Fund’s lead portfolio manager. “Inflation was high, the job market was remarkably strong, and higher interest rates were on the horizon,” he explained. “This presented a great opportunity to create a short-duration mortgage solution that would benefit our clients by mitigating interest rate exposure.”
Today, the FGP Mortgage Fund is celebrating a milestone, marking its third anniversary with a record of impressive performance. The fund has consistently outpaced its benchmarks, generating an annualized return of 2.81% since its inception. In comparison, the FTSE Canada Short Term Bond Index has yielded 1.18% during the same period.
This success is attributed to a well-defined strategy that focused on short-duration mortgages, coupled with a carefully curated portfolio. Domsy emphasizes the fund’s focus on “high-quality, low-indebted properties, broadly diversified by region.” FGP continues to prioritize investments in segments like multi-family housing and retail, recognizing the attractive risk-return profile of these sectors within the commercial mortgage market.
The FGP Mortgage Fund presents investors with a unique opportunity to diversify their portfolios with investments in mortgages originated and serviced by reputable entities like banks, life insurance companies, and other credit intermediaries. The fund’s low correlation to other asset classes and potential for significant yield enhancement make it an appealing option for investors seeking to optimize their portfolios.
For more details on the FGP Mortgage Fund, please visit [link to website].
