Mortgage Investment Fund (USD)

The Meridian Mortgage Fund invests in secured mortgages, maintaining a mixture of loans between land, individual family homes & condominium units. This diversification ensures that any downturns in one sector will not excessively affect the performance of the Fund. The Meridian Mortgage Fund lends funds to approved parties in the Turks and Caicos Islands and North America. All loans are secured by real property. Debt to equity ratios do not exceed 50% unless there are other near cash assets which can be secured by the fund manager and used as additional collateral. A loan to value ratio of no more than 75% would then be considered.

 

High Returns

Interest rates in the Turks & Caicos Islands have historically been significantly higher than in most onshore locations. The Fund therefore estimates a net return to investors between 5.5% – 7.5%. Since 1996, the fund averaged a return of just over 10% annually.

Periodic Income

The income generated by the Fund can be either reinvested in the fund or paid out on a quarterly or annual basis. For persons seeking a regular distribution of income to meet living or other financial obligations, the Meridian Mortgage Fund provides an attractive alternative to low yielding bonds and Treasury bills.

 

Security

Meridian Trust Company Ltd is a licensed and insured purveyor of investment products and maintains USD $2,000,000 liability insurance. An annual audit and review by the Financial Services Commission ensures that accounting standards are maintained.

PriceWaterhouseCoopers are the auditors of Meridian Trust Company Ltd and the Meridian Mortgage Fund. All mortgages are registered with the Government Land Registry, and once a charge is registered against a title the British crown guarantees this title being legitimate.

 

Fees

There are no subscription fees to purchase the Meridian Mortgage Fund but a 2% redemption fee will be charged if the subscription is redeemed within 1 year. The management fee is 0.63% of the average daily net asset value of the fund. The fee is paid quarterly. The investment advisor fee is 0.025% of the average daily net asset value of the Fund. This fee is also paid quarterly.

 

Investment Advisor

Investment advisor services are provided by Meridian Mortgage Corporation Ltd who ensures the investment decisions are made only after thoughtful consideration of all possible consequences. The current real estate climate in the Turks & Caicos Islands is buoyant and the fund has not had any losses on foreclosures to date. The 15% increase per annum on land prices has helped increase purchaser confidence and provide extra collateral. The Island of Providenciales in the Turks & Caicos Islands saw double-digit growth for each of the 5 years leading up to 2008, and after consolidating during the Great Recession, this period of expansion is expected to continue.

 

Fund Manager

Meridian Mortgage Corporation Ltd, a wholly owned subsidiary of Meridian Trust Company Ltd, manages the Fund. Meridian Trust Company Ltd is a fully licensed and insured trust company operating in the Turks and Caicos Islands. The manager of the Fund is responsible for the unitholder subscription and redemption of units. The valuation and tracking of fund assets are also performed by Meridian Mortgage Corporation Ltd.

The prospectus of the fund has been scrutinized and approved for distribution by the Financial Services Commission of the Turks and Caicos Islands.

Summary

For those investors looking to diversify from stocks and bonds, investments from the Meridian Mortgage Fund offer above average returns associated with real estate and the knowledge that your money is backed by real property.

Benefits of the Meridian Mortgage Fund investment are:

  • Returns that average 10.0% and better since inception;
  • Liquidity (under certain terms);
  • Real estate security;
  • Quarterly income;
  • Low volatility;
  • Professional management;
  • Diversification;
  • Compounding available.
Mortgage Lending

Fund Purchases

The Meridian Mortgage Fund may be purchased directly from the Meridian Mortgage Corporation or through an authorized Fund dealer.

Please Contact Us if you would like to receive a copy of the Fund prospectus.

The Fund Subscription Form (including payment instructions) may be found our website. We also accept payment by most major credit cards. The completed form and supporting identification documents should be sent to: Meridian Mortgage Corporation Ltd, Box 599, Level 2, Le Vele Plaza, Grace Bay Road, Grace Bay, Providenciales, Turks and Caicos Islands, B.W.I.