Morrison Financial Mortgage Income Junior Fund
Managed by Morrison Financial
Data as of: June 30, 2026
This review, compiled by WOWA for informational purposes only, is not investment advice, an offer, or a solicitation. Past returns don't guarantee future results.
AUM
$70M CAD
(Combined AUM of Morrison Financial Mortgage Funds)
2025 return
9.08%
Effective LTV
54.94%
Management fee
1.00%
About Morrison Financial Mortgage Income Junior Fund
The Morrison Financial Mortgage Income Junior Fund is an open-ended mutual fund trust targeting a net annual return of 8.5–9.5% delivered via monthly distributions. Investing alongside the Senior Fund in a shared pool of short-term residential construction, development, and bridge mortgages across key Ontario markets, the Junior Fund assumes a subordinate, first-loss position on loan proceeds. In exchange for taking on higher risk relative to the Senior Fund, it captures an approximate 2% yield premium. Units are fully eligible for registered accounts, including RRSPs, RRIFs, RESPs, and TFSAs.
The fund reports approximately $70M CAD in assets.
Most of the portfolio is in first mortgages, with some subordinate exposure.
Return of the mortgage funds are closely related to bank prime lending rate of interest, which has been declining. The latest annual return declined from 9.72% in 2024 to 9.08% in 2025.
The portfolio is highly concentrated in Ontario.
At a glance
| Assets under management (AUM) | $70M CAD |
| 2025 return | 9.08% |
| Effective LTV | 54.94% |
| First mortgages (as a % of the portfolio) | 87.50% |
| Property focus | Construction (62.8%) / Commercial (37.2%) |
| Structure | Trust |
| Investor access | Available to individual investors |
Morrison Financial Mortgage Income Junior Fund portfolio and performance
The portfolio is composed of construction mortgages (62.8%) and commercial mortgages (37.2%).
| Property Type | Share (%) |
| Construction | 62.8% |
| Commercial | 37.2% |
Note: Land and pre-construction mortgages are classified under commercial mortgages.
Morrison Financial Mortgage Income Junior Fund has a focus on Ontario, with 91% of its mortgages located in Ontario.
| Province/Region | Share (%) |
| Ontario | 91% |
| Unclassified | 9% |
Morrison Financial Mortgage Income Junior Fund returns
| Calendar year | Net return |
| 2023 | 9.62% |
| 2024 | 9.72% |
| 2025 | 9.08% |
Return objective (2026)
Morrison Financial Mortgage Income Junior Fund's target for 2026: 8.50 – 9.50%
Morrison Financial Mortgage Income Junior Fund facts
Fund structure
| Structure | Trust |
| Manager | Morrison Financial |
| Series | F |
| Latest data | June 30, 2026 |
Mortgage portfolio
| First mortgages | 87.50% |
| Effective LTV | 54.94% |
| Property focus | Construction |
Fees
| Management fee | 1.00% |
| Performance fee | 50% Over Prime + 3% |
Additional fund details
The Morrison Financial Mortgage Income Junior Fund co-invests alongside the Senior Fund in a shared $70 million asset pool of short-term residential construction, development, and bridge mortgages across primary Ontario markets. By occupying the subordinate position in the portfolio, the Junior Fund absorbs first-loss equity risk to protect the Senior Fund. In exchange for taking on this subordinated risk profile, the Junior Fund targets a net return approximately 2.00% higher than its Senior counterpart. Despite the higher yield mandate, management has maintained an impeccable safety record with $0 in realized investor losses since inception, with zero history of suspended distributions or redemptions. (FundServ Code: BEL503)
Who can invest in Morrison Financial Mortgage Income Junior Fund?
Available to individual investors
This fund is available to individual investors.
The minimum investment amount for accredited investors is $25,000.
The minimum investment amount through an advisor or dealer is $25,000.
About Morrison Financial
Founded in 1987 by David Morrison, Morrison Financial Mortgage Corporation (morrisonfinancial.com) is one of Canada’s longest-standing non-bank mortgage lenders and investment managers. Based in Toronto, the firm specializes in short-term construction, development, and bridge financing for builders across Ontario, alongside specialized loans for condominium capital repairs and reserve fund shortfalls. Over nearly four decades, Morrison Financial has deployed more than $1.7 billion in mortgage capital, maintains $270 million in mortgages under administration, and manages two mutual fund trust-structured mortgage income funds that have distributed over $10 million to investors.
Compare other funds by Morrison Financial
Morrison Financial manages several mortgage investment entities (MIEs) with different loan and investment objectives. Compare its other funds below.
| Fund | Primary strategy | Approx. size | |
|---|---|---|---|
| Morrison Financial Mortgage Income Senior Fund | Construction mortgages | $70M CAD | Learn More |
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