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Frontenac Mortgage Investment Corp.
Location: Sharbot Lake, ON
Sector: Financial Services .
Frontenac Mortgage Investment Corporation (the “Fund”) is a non-redeemable investment fund. The Common Shares are redeemable only once per year, on November 30th, or otherwise under certain limited circumstances (see “Redemption of Securities”). The Fund operates as a mortgage investment corporation and its objective is to generate income while preserving capital for re-investment. The Fund expects to derive its earnings principally from the receipt of interest payments on mortgages and subsidiarily from interest distributions on the cash reserves of the Fund. The Fund will achieve its investment objective by lending on the security of mortgages on real property located in Canada but primarily in the province of Ontario. The mortgage loans transacted by the Fund will generally not meet the underwriting criteria of conventional lenders and/or will involve borrowers in rural areas generally not well serviced by major lenders. As a result of the Fund’s investment in loans secured by non-prime mortgages, the Fund expects to earn a higher rate of interest than what can generally be obtained through more conventional mortgage lending activities.
Business Documents
The fundamental investment objective of the Fund is to generate as much income as possible while preserving capital for re-investment through the making of commercial and residential mortgage loans secured against real property located in Canada and principally in Ontario. As a mortgage investment corporation, the Fund expects to derive its earnings principally from the receipt of mortgage interest payments and, subsidiarily, from interest or interest-like distributions on the cash reserves of the Fund.
The Fund’s business consists in lending money, principally to individuals, for the purposes of acquiring, developing, maintaining or upgrading residential and other real property, against the security of a mortgage granted on such property. The purchase of a single security, namely, the Common Shares, allows an investor to participate with other investors in a common fund holding a variety of loans secured by mortgages.
The Fund, through the Administrator, works closely with retail mortgage brokers throughout Ontario in order to market itself as a lender of choice in the non-prime mortgage market segment. In this manner, it expects to be well positioned to receive referrals on mortgage lending opportunities that do not meet the criteria of the major lending institutions or that involve borrowers in rural areas typically not well serviced by major lenders. As a result, the Fund’s loans secured by non-prime mortgages are expected to earn a higher rate of interest than what is generally obtainable through traditional mortgage lending activities.
In furtherance of its strategy, the Fund:
(i) will make loans in amounts up to 80% of the fair market value of the mortgaged property, subject to certain restrictions, as more fully set out under “Investment Restrictions”, for initial terms of up to five years;
(ii) may engage in bridge financing activities including the financing of new home construction;
(iii) targets that at least 90% of the value of mortgages held will be first mortgages and no more than 10% of the value of mortgages held will be second mortgages;
(iv) allows for up to 25% of the value of mortgages held to be on commercial or mixed-use properties;
(v) intends to generally invest in open mortgages carrying a fixed rate of interest;
(vi) targets holding a cash position equal to approximately 5% of its total assets; and
(vii) will not buy or sell mortgages in the secondary market, hold a fractional interest in a mortgage or participate in mortgage syndications.
Longetivity – We have been successfully managing mortgage based investments for well over 30 years
Public Company, Not listed – You gain the transparency and professional management of a public company without the volatility of public markets.
No Leverage – We manage our cash position closely to ensure investment dollars are always working to their full capacity, while not putting investor equity at greater risk with the use of leverage.
Matthew Robinson, CIM – President (AR)
Matthew J. Robinson is the President, a director, and the controlling shareholder of the Manager. For the past three years, he has been actively involved in all aspects of the management and supervision of the business of the Fund including portfolio analysis and strategic asset allocation. Matthew J. Robinson is the eldest son of the Manager’s founder and former President, Wayne A. Robinson. Matthew holds a CIM (Certified Investment Manager) designation and is registered as an Advising Representative under the Manager’s Portfolio Manager registration. Matthew received his Bachelor of Science degree from Queen’s University on June 1, 2000 with the majority of his electives taken in Commerce. Prior to assuming full-time duties with the Manager, over the previous fifteen years, Matthew gained extensive experience and expertise in real estate analysis and finance as principal and broker of Lake District Realty Corporation, a real estate firm. Matthew Robinson is also a mortgage broker and director of the Administrator.
Kevin Cruickshank, CPA, CA – Executive Vice President & Chief Financial Officer
Kevin graduated from Wilfrid Laurier University with a Bachelor of Business Administration (Honours) with Distinction in 1990 and was admitted to the membership of the Institute of Chartered Accountants of Ontario in 1993.
After having worked for five years as a Chartered Accountant with Wilkinson & Company LLP in Belleville, Ontario, Kevin spent the next five years as the Vice-President of Finance for the Cooney Transport Group of Companies where he oversaw the financial affairs of a group of 19 companies involved in international trucking operations with a real estate network of seven terminals located in Ontario and Quebec.
In 2000, Kevin was appointed Chief Financial Officer of the Hanley Group of Companies, also in Belleville, Ontario, where he oversaw the financial affairs of several companies involved in quick food service operations and managed an investment company.
Having always wanted to own his own business, he became a partner in The Loon’s Call Campground & Cottage Resort, a seasonal resort operation located in Cloyne, Ontario.
After leaving the Hanley Group of Companies in 2004, Kevin continued his accounting practice, assisting clients with business planning and financial matters in addition to providing traditional accounting and taxation services until June 2012 when he joined W.A. Robinson Asset Management as its full-time CFO. He also holds the CCO (Chief Compliance Officer) title.
Debra Smith, CIM ® – Manager, Investor Services (AAR)
Debra manages the Investment Services Department and is the main touch point for our Advisor partners.
Debra is also responsible for our discretionary portfolio and group portfolio clients who have been with us from the early days of operations.
Debra, a Chartered Investment Manager (CIM ®), has been with the company since 2002 and has experience in corporate accounting, personal finance, and income tax preparation within W.A. Robinson Asset Management Ltd. as well as investment and management experience.
In addition to obtaining her CIM designation, Debra has completed several finance, tax and accounting courses through St. Lawrence College and the Certified General Accountants (CGA) program.
Actively involved in her community, Debra was a Scout Leader for 15 years, coached baseball for 10 years and was the Treasurer and Entertainment Chair for the Parham Agricultural Society.
