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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.

About the Author

Steve Randall has more than three decades of media experience encompassing online, newspapers, magazines, radio, and podcasts. He focuses on insights and news for professionals in finance, real estate, and legal services. Steve writes for multiple Key Media titles in Canada, United States, Australia, and New Zealand. LinkedIn | Email

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