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.
