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.
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% – 6%. Since 1996, the fund averaged a return of just over 8% annually.
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.