Vector Mortgage Trust
Open-Ended Investment Trust
Managed by Blue Couch Fund Administration Inc.
Data as of: February 28, 2023
This review is compiled by WOWA for informational purposes only and is not investment advice, an offer, or a solicitation. Figures are drawn from the manager's published materials as of the dates shown and may change. Returns are historical and do not guarantee future results. Verify all details with the manager or a licensed advisor before investing.
About the fund
Vector Mortgage Trust is an open-ended trust holding a diversified portfolio of first mortgages (50-75% LTV) on small and mid-size commercial and pre-development properties within about an hour of the GTA. Loans are short term (roughly 18-month average) for land acquisition, refinancing and construction. Vector reports over $355 million in mortgages under management across 46 loans, targets 7-10% annually, and states it has delivered 7-% over seven years with no loan losses.
At a glance
| Assets under management (AUM) | $355M CAD |
| Overall LTV | 53.7% |
| First mortgages | 100% |
| Structure | Open-Ended Investment Trust |
| Investor access | Available to individual investors |
Portfolio & performance
The portfolio is composed of is composed primarily of commercial mortgages.
Vector Mortgage Trust has a focus on Ontario, with 100% of its mortgages located in Ontario.
| Province/Region | Share (%) |
| Ontario | 100% |
Return objective (2026)
Vector Mortgage Trust has a target return of 7%-10% for 2026.
Fund facts
| Structure | Open-Ended Investment Trust |
| Performance fee | 0% |
| First mortgages | 100% |
| Leverage | Leveraged |
| Series/classes | A, B, E, F, I |
| Latest data | February 28, 2023 |
Additional fund details
The AUM shown represents Vector Financial’s broader mortgage assets under management and may include Vector Mortgage Trust as well as syndicated or co-lender mortgage interests held outside the Trust. As of December 31, 2022, the Trust’s mortgage portfolio was $138.7 million, with a weighted-average loan-to-value ratio of 53.7%. All exposure was located in Ontario’s Greater Golden Horseshoe. All mortgages were secured by registered first mortgages, although 18.1% of the portfolio consisted of economically subordinated B-tranche interests. The underlying partnership may borrow up to 30% of the mortgage portfolio’s book value. Blue Couch Fund Administration Inc. is the legal manager of Vector Mortgage Trust and its underlying partnership, while Vector Financial Services Limited originates and administers the mortgages. Management fees were 0.85% for Classes A and B and 0.60% for Classes I, F and E, with no performance fee. The general minimum initial investment was $10,000, while Class I required a minimum of $5 million. Figures from the February 28, 2023 offering memorandum are used only where more recent information was unavailable.
Investor access
Available to individual investors
This fund is available to individual investors.
The minimum investment amount for accredited investors is $10,000.
The minimum investment amount through an advisor or dealer is $10,000.
About the manager
Vector Financial Services Limited is a Toronto-based private mortgage lender, brokerage and administrator operating since 1969. It originates, underwrites and administers first mortgages on land, pre-development and construction projects in the Greater Toronto Area and Greater Golden Horseshoe. Vector Mortgage Trust is its open-ended exempt-market trust. Current investor inquiries are directed through Blue Couch, while the earlier Parvis investment window is closed.
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