The Owemanco Mortgage Trust is an unincorporated closed-end investment trust established under the laws of the Province of Ontario pursuant to a trust indenture. It was established on July 2010. The Trust is the sole limited partner in the Owemanco Mortgage Limited Partnership (the “Partnership”) and conducts its lending activities only through the Partnership. Ontario Wealth Management Corporation is the Trust’s mortgage manager and acts as the primary loan originator, underwriter, administrator and syndicator for the Partnership. Owemanco also acts as administrator for the Trust’s affairs.
While all mortgages investments carry some degree of risk, the primary mandate of the Trust is to safeguard capital while delivering consistent returns to investors.
The mortgage fund format offers three key advantages over investing in mortgages on a syndicated basis:
- Diversification of risk. The risk of default is spread over a portfolio of loans. Unlike the syndicated environment, investors are not directly subjected to default of any one mortgage.
- Consistent returns. Unitholders experience a more consistent stream of interest income. Unlike the syndicated environment, a default or payout by a borrower will not have an exaggerated impact on your portfolio.
- Redemption provision. Unitholders have the right to redeem their investment without penalty after 1 year.
The independent auditor of the Trust is Crowe Soberman, LLP.