ACM grows commercial mortgage fund to $1.33 billion

Commercial mortgage focused investment firm ACM has grown its Commercial Mortgage Fund to $1.33 billion as of December 31, 2018.

The fund added 22 new mortgages totalling $247.1 million and repaid 18 totaling $134.6 million, bringing its total number of mortgages to 118 with growth in both asset class and geographical diversity.

The portfolio remains conservative with an overall loan-to-value ratio of 55.1% and debt service coverage ratio of 1.36 times. All loans remain current and are being repaid as agreed.

Credit spreads in the commercial mortgage market ended flat by year-end as a result of spreads widening late in the year, a trend experienced in the boarder credit markets. The impact of movements in the underlying bond yields and credit spreads resulted in a 0.12% increase in the net asset value of the Fund.

Overall, the Fund's total returns, net of all fees and expenses, for the year ended December 31, 2018 were:

Class

Net Income

Change in NAV

Total Net Return

F and I1

+4.02%

+0.12%

+4.15%

A

+3.75%

+0.12%

+3.87%

B, C, D, and E

+3.53%

+0.12%

+3.66%

Returns are compounded monthly and assume all distributions are reinvested in the Fund.

ACM Commercial Mortgage Fund paid December 31, 2018 unitholders of record a special year-end distribution of 24.023 cents per unit, in addition to their regular monthly distribution, representing additional interest and fee income generated by the Fund over the year.

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