First National Mortgage Investment Fund

As of October 30, 2015


First National Financial LP is the largest non-bank lender of single-family residential mortgages in Canada and one of the largest multi-unit residential and commercial mortgage lenders in Canada.

The Fund has been created to obtain exposure to a diversified portfolio of mortgages originated by First National Financial LP, the Mortgage Investment Advisor of the Fund and a wholly owned subsidiary of First National Financial Corporation. Stone Asset Management Limited is the investment fund manager and portfolio manager of the Fund.

Fund Details  
Security Class A Shares
Structure Closed-End Fund
Ticker FNM.UN
Distributions $0.05/unit/month
Current Yield 7.10%
Fund NAV $9.28
For current NAV, click here.
Closing TSX price $8.45
For current TSX price, click here.
Management Fee 1.35% of net asset value per annum
Performance Fee 0.20% of above average of 2-year GOC yield plus 400

Portfolio Overview
Portfolio Size 47,555,872
Loans in Portfolio 39
Average Loan Size 1,219,381
Weighted Average


The investment objective of the Fund is to provide tax-advantaged monthly cash distributions while preserving capital.


  • In-house mortgage origination from one of the largest and most experienced teams in Canada.
  • Tax-advantaged monthly distributions with an initial monthly target annual distribution of 6.0% (pre-tax equivalent of 8.77%), paid monthly.
  • The Fund will invest primarily in short-term bridge mortgages (12 to 36 months), which typically bear higher rates of interest than traditional debt financing.
  • Mortgages will be secured primarily by multi-unit residential and commercial income producing properties where the principal and interest can be serviced from cash flows generated by the underlying Properties.
  • Each mortgage's Loan-to-Value (LTV) will not exceed 85%, and the weighted average LTV of the entire Portfolio will not exceed 75%.


First National believes that the fundamentals for real estate investment and development remain favourable in Canada providing an attractive market for mortgage lending in high quality real estate assets.

  • Demand for mortgage financing has remained stable as real estate investment trusts (REITs) and pension funds continue to raise capital to acquire new assets.
  • An abundance of domestic and foreign investment capital continues to be deployed in Canadian direct real estate equity investments
  • Canadian real estate prices have appreciated recently and are expected to remain stable


Loan to Value Term
Interest Rate Security Asset Class
King City $5,450,000 55.0% 24 10.0% 1st Land
Brantford $3,360,000 70.0% 24 6.25% 1st Industrial
Calgary $3,151,000 74.8% 25 9.50% 2nd Retail
Edmonton, Fort Saskatchewan $2,971,000 72.2% 24 12.0% 2nd Multi-Residential
Victoria $2,686,014 79.6% 12 5.85% 1st Multi-Residential
Waterloo $2,400,000 73.4% 12 11.21% 1st Multi-Residential
Toronto $2,314,232 70.0% 24 7.0% 1st Multi-Residential
Montreal $1,900,000 88.0% 24 5.50% 1st Multi-Residential
Mirabel $1,747,200 70.0% 24 5.90% 1st Multi-Residential
Joliette $1,700,000 72.0% 24 12.0% 2nd Multi-Residential

* Based on arms length third party appraisals performed at the time of funding. The summary of top 10 mortgage holdings may change due to ongoing portfolio transactions.


By Asset Class

Multi-residential 68.4%
Retail 11.5%
Land 11.5%
Industrial 8.4%
Office 0.2%

By Region

Ontario 40.9%
Alberta 20.8%
Quebec 16.9%
BC 12.4%
Atlantic Canada 6.8%
Saskatchewan 2.2%
Manitoba 0.0%

By Security

1st Mortgage 70.6%
2nd Mortgage 26.2%
3rd Mortgage 3.1%


High quality mortgages will be primarily secured by income producing Real Property where the principal and interest can be serviced from the cash flow generated by the underlying Real Property. The mortgage may be either first ranking, junior first ranking or second ranking.


Robert Inglis
Chief Financial Officer
First National Financial Corporation
Tel: 416-593-1100

Jeremy Wedgbury
Senior Vice President, Commercial Mortgages
First National Financial Corporation
Tel: 416-593-3007


This material is not to be distributed, reproduced or communicated to a third party without the express written consent of First National Financial LP and should be read in conjunction with the Fund's most recently filed Prospectus. This material is for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. Past results are not intended to be indicative of future performance. Commissions, service fees, management fees and expenses may be associated with investment funds.