Investment Overview
The Ginkgo Mortgage Investment Corporation – Class A Series 2 offers investors access to a diversified portfolio of short-to-medium-term mortgages primarily in major Canadian urban centers. As a MIC, it operates under a strict regulatory framework, allowing it to flow income directly to investors, making it a tax-efficient vehicle for generating consistent monthly cash flow. This fund is designed for investors seeking to diversify beyond traditional stocks and bonds with an income-producing asset backed by tangible real estate collateral.
Target Annual Returns: 8-10%*
Minimum Investment: $10,000
Distribution Frequency: Monthly
Distribution Yield: ~9% (as per current offering)
Key Details at a Glance
| Detail | Specification |
|---|---|
| Investment Type | Mortgage Investment Corporation (MIC) |
| Asset Class | Mortgage Fund / Private Credit |
| Primary Strategy | High-Yield Mortgage Lending |
| Risk Profile | Medium Risk |
| Target Annual Return (ARR) | 8% – 10% |
| Minimum Investment | $10,000 |
| Investment Horizon | Medium to Long Term |
| Distributions | Paid Monthly |
| DRIP Eligible | Yes (Reinvestment at 0% Discount) |
| Registered Plans | Eligible for RRSP, TFSA, RRIF, and other registered accounts |
Investment Strategy & Approach
The Ginkgo MIC – Class A Series 2 employs a High-Yield Mortgage Lending strategy. The fund’s manager focuses on:
- Diversified Portfolio: Constructing a portfolio of first mortgages across various property types, including residential, multi-family, and light commercial real estate.
- Strategic Lending: Providing financing for projects such as residential renovations, land development, construction, and bridge financing where traditional banks may be less flexible.
- Conservative Loan-to-Value (LTV): A key risk mitigation strategy is maintaining a conservative average LTV ratio across the entire portfolio (typically well below 75%), ensuring significant equity cushion in each property.
- Geographic Focus: Concentrating investments in stable and growing real estate markets within the Greater Toronto Area, Vancouver, Winnipeg, Calgary, and Edmonton.
The MIC Advantage
Investing in a Mortgage Investment Corporation offers distinct benefits:
- Pass-Through Tax Treatment: MICs are required to distribute all net income to shareholders, avoiding corporate-level taxation. This makes them highly tax-efficient.
- Monthly Income: Provides a predictable stream of income, ideal for retirees or those seeking cash flow.
- Professional Management: Investors benefit from a dedicated team of underwriters and managers who actively source, vet, and service the mortgage portfolio.
- Collateralized Security: Investments are backed by legally enforceable mortgages on real property, providing a layer of security for investor capital.
Who Is This For?
The Ginkgo MIC – Class A Series 2 is an ideal investment for:
- Income-focused investors seeking monthly distributions.
- Those looking to diversify their portfolio beyond public markets.
- Investors comfortable with a medium-risk profile for potentially higher yield.
- Individuals looking to hold a private, real estate-backed investment within their RRSP or TFSA.
About the Issuer: Ginkgo Mortgage Investment Corporation
Ginkgo Mortgage Investment Corporation is a Canadian MIC focused on originating and managing a diversified portfolio of mortgages. With a management team experienced in real estate lending, capital markets, and risk management, Ginkgo’s philosophy is centered on generating attractive risk-adjusted returns for its investors through a disciplined and secure lending process. The company is committed to transparency, prudent underwriting, and building long-term shareholder value.
