Foremost has 35 years of experience in the industry and has been managing pooled mortgage funds for investors since 1991. We provide qualified investors the opportunity to invest in high-quality alternative mortgages through our well-established mortgage funds, Foremost Mortgage Trust, which holds primarily first mortgages, and Foremost High Yield Mortgage Fund, which holds primarily second mortgages. Investors have the ability to choose their risk level by determining how much additional risk they are willing to take, compared to most competitors who have only a single fund, and choose the amount of second mortgage investments for you. This is just one of the many ways Foremost is putting clients first and offering superior flexibility and service.
Foremost Mortgage Trust was launched in 2006 through the amalgamation of three existing mortgage funds managed by Foremost Financial and is available to Accredited Investors in Ontario. The Trust holds predominantly first mortgages in specific geographies in Southern Ontario, with an emphasis on financing residential infill constructions projects in the GTA. FMT focuses on protecting investor principal through diversification (100+ mortgages in the portfolio) and conservative loan-to-values (max of 75% for any single loan / weighted average below 55%). FMT offers monthly distributions and investors have the option to have these automatically reinvested or to be deposited in their bank account. The trust can be held in registered accounts, such as RRSPs, RIFs, and TFSAs.
| Foremost | S&P / TSX | DEX-U | |
| 1 Year | 8.0% | 12.1% | 3.7% |
| 3 Years | 8.0% | 6.0% | -2.0% |
| 5 Years | 7.6% | 9.3% | -0.2% |
| Annual Since Inception | 7.0% | 6.4% | 3.3% |
| Total Since Inception | 251.9% | 215.6% | 83.6% |
The Foremost High Yield Mortgage Fund was launched in 2014 to hold predominantly second mortgages and is available to Accredited Investors in Ontario. The High Yield Fund is not meant as an alternative to the Foremost Mortgage Trust, or other first mortgage funds, but rather an addition to a core holding of first mortgages. The High Yield Fund is meant for investors who are willing to accept a higher level of risk, through the addition of second mortgages, to potentially increase their return. The goal of the High Yield Fund is to give investors the opportunity to choose the risk level that is right for them, compared to typical mortgage funds which hold both first and second mortgages in the same fund. Like Foremost Mortgage Trust, The High Yield Fund focuses on financing residential infill constructions projects in the GTA.
| FHYMF | S&P / TSX | |
| 1 Year | 10.4% | 12.1% |
| 3 Years | 9.4% | 6.0% |
| 5 Years | 8.9% | 9.3% |
| Annual Since Inception | 9.0% | 6.7% |
| Total Since Inception | 133.4% | 89.1% |
A typical investor in the Trust is an Accredited Investor in Ontario who is either:
A typical investor in the High Yield Fund, is a more sophisticated and experienced mortgage investor who is looking to add second mortgage exposure to a core investment in first mortgages. These investors are looking for increase returns and are willing to accept increased risk compared to an investment in Foremost Mortgage Trust alone.
Can anyone in Ontario invest in the mortgages funds, and what is the minimum investment?At present, the Trust and High Yield Fund is currently available only to Accredited Investors residing in Ontario. We have no minimum required investment amount.
What are the liquidity terms for subscription and redemptions?In the normal course of business redemption, requests will be satisfied within 90 days for the Trust and 180 days for the High Yield Fund. Please refer to the Offering Memorandum for each fund for full details on the redemption terms.
Can I hold units in my registered plan (e.g., in an RRSP, RRIF, IPP, etc.)?Units of Foremost Mortgage Trust can be held inside a range of registered retirement plans, such as RRSPs, RRIFs, IPPs, LIRAs, TFSAs, etc. To find out if it can be held in your existing registered account, please contact us.
Units of the Foremost High Yield Mortgage Fund are NOT currently eligible for registered accounts.
Can unit-holders reinvest their distributions?Yes, unit-holders in both funds can participate in the distribution reinvestment plan (DRIP) to reinvest the monthly distributions by acquiring additional Trust units in lieu of cash.
Are the distributions taxable in the year received?Distributions are generally taxable as interest income in the year received, regardless of whether or not the units are reinvested.
*Foremost does not provide tax advice, so please consult your own tax advisor.
Foremost Mortgage Trust management fee equal to 1% of the Trust’s assets and has no performance fee.
Foremost High Yield Mortgage Fund has no management fee and has a performance fee equal to 10% of income earned by the fund.
What reporting do the funds provide?Investors currently receive account statements by mail quarterly or by email monthly. In addition, Foremost, as manager of the Trust and High Yield Fund, provides comprehensive quarterly reports to unit-holders. These report provides key updates and also include the unaudited financial statements for the quarter. In addition, a comprehensive confidential summary detailing all of the mortgage loans in the portfolio at quarter end is included.
Are the mortgage funds audited?Yes, the both mortgage funds are audited annually, and the current auditors are Ernst & Young LLP.
Want to learn more about the Funds?If you have any additional questions or want to learn more about the Trust, please click here
Questions
If you are looking to invest, we will be happy to assist and answer your questions. Please contact us below.
Executive Vice President, Trustee of Foremost Mortgage Trust, Mortgage Agent
Executive Vice President
Investor Relations
FOREMOST FINANCIAL CORPORATION
Foremost's Lic. #10342 / 11654
Footer LinksFOOTNOTES
[1] Loan To Value (“LTV”) on construction deals is calculated using the formula [LTV = total outstanding loan / ]. The appraised value at completion is based on professional appraisals received from qualified appraisers. These appraisals are highly subjective and have a margin of error that may be material.
[2] The annualized return since inception is the compound annualized return since Inception (2006). The Trust’s historical returns are net of management fees of 0.75% from January 2006 to June 2013 and 1% p.a. from July 1, 2013, onward. Historical returns are provided for illustrative purposes only. PAST PERFORMANCE HAS NO PREDICTIVE VALUE AND IS NO INDICATOR OF FUTURE PERFORMANCE.
[3] The S&P TSX Composite Index and the DEX Universe Bond Index (DEX-U) are shown here for illustrative purposes only.
[4] The annualized return since inception is the compound annualized return since Inception (2014). Prior to July 1, 2021, a portion of the origination fees earned, equal to 0.75% of the face amount of the mortgage loans funded by the High Yield Fund, was assigned to the High Yield Fund, and an Incentive of 12.5% of net income was charged to the High Yield Fund. Subsequent to July 1, 2021, High Yield Fund no longer receives any portion of any origination fees earned and the Incentive Fee was reduced to 10% of Net Income. Historical returns are provided for illustrative purposes only. PAST PERFORMANCE HAS NO PREDICTIVE VALUE AND IS NO INDICATOR OF FUTURE PERFORMANCE.
[5] The S&P TSX Composite Index is shown here for illustrative purposes only.
DISCLAIMER:
The information and materials on this website have been prepared for information purposes only, and do not constitute an offer or solicitation by any person in any jurisdiction in which such offer or solicitation is not authorized, or to any person to whom it is unlawful to make such offer or solicitation. The Foremost Mortgage Trust (the “Trust”) and Foremost High Yield Mortgage Fund (the “High Yield Fund”) are exempt market securities, and prospective investors are advised to read the offering documents and to consult with an independent financial advisor, prior to making any investment decision based on the document. The Trust and the High Yield are only available to Accredited Investors, as the term is defined by Canadian securities laws. The Trust and the High Yield Fund are related and connected issuers of Foremost Financial Corporation. Any rates of return, data, and charts shown in the document are provided for information purposes only and do not reflect on the Trust’s future value. Investment losses may occur and investors could lose some or all of their investment. PAST PERFORMANCE HAS NO PREDICTIVE VALUE AND IS NO INDICATOR OF FUTURE PERFORMANCE. The information provided in the document is intended to be accurate. However, Foremost Financial Corporation, the Trust, and the High Yield Fund do not make any representations, warranties, or conditions of any kind, whether expressed or implied, including but without limitation any representations, warranties, or conditions regarding the accuracy, completeness, or timeliness of the information contained herein, which are disclaimed by Foremost Financial Corporation, the Trust and the High Yield Fund to the fullest extent permitted by law. Any reproduction of this website in whole or in part is prohibited without the prior consent of Foremost Financial Corporation.
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