AP Capital Mortgage Fund
Mortgages Under
Administration: $293M
Current Yield:
7.15%
Distributions:
Monthly
Inception:
January 2018
Overview
Share Price:
$100
Per Share
- Inception: 2018
- Mortgages Under Administration (MUA): $293M
- Current Yield: 7.15%
- Distribution: Monthly (cash or DRIP);
- Eligible Plans: RRSP, RRIF, LIRA, TFSA
- Redemptions: Monthly; conditions may apply—see OM
- Management fee: 1.50% of MUA
Reasons to Invest
Consistent Reliable Income: 16+ years of consecutive monthly distributions.- Secured by Real Property: Fund invests only in short-term mortgages secured by residential property across Western Canada. Providing you with collateral-backed income.
- Quality First Approach: Conservative loan-to-values with a focus on quality residential assets and creditworthy borrowers emphasize capital preservation over aggressive growth.
- Scale & Diversification: Funded over $1.2B across 2,700+ mortgages
Investment Objective
To provide stable monthly income and preserve capital by investing in a diversified portfolio of short-term, residentially secured mortgages in Western Canada. Through disciplined underwriting and conservative loan-to-value targets, the fund focuses on creditworthy borrowers and high-quality residential assets in stable urban markets.
Performance
Growth of $100,000 Invested as of April 30th, 2026
Compound Returns
3yr
8.80%
5yr
8.01%
10yr
–
SI
7.72%
Calendar Returns
Distributions
Pay Date
Amount
Type
2026-03-25
0.6250
Regular
2026-02-21
0.6250
Regular
2026-01-20
0.6250
Regular
2025-12-19
0.6458
Regular
2025-11-17
0.6458
Regular
2025-10-16
0.6458
Regular
2025-09-14
0.6458
Regular
2025-08-13
0.6667
Regular
Portfolio & Key Statistics
Property Type
Mortgage Position
Province
Fund Size & Scale
Mortgages Under Administration
$293M
Active Mortgages in Portfolio
469
Shareholder Accounts
1,759
Fund Inception
January, 2018
Portfolio Quality Metrics
Average Portfolio LTV:
57%
Average Borrower Credit Score:
716
Residential Mortgages:
98%
Owner-Occupied Properties:
44%
Average Mortgage Size:
624,733
Facts, Fees & Fund Codes
Fund Facts
Fund Type
Mortgage Investment Corporation (MIC)
Inception Date
January, 2018
Registered Plan Eligible
RRSP, TFSA, RRIF, LIRA
Share Price (All Classes)
$100 per share
Distributions
Distribution Frequency
Monthly
Distribution Options
Cash or DRIP (Dividend Reinvestment Plan)
Tax Treatment
Taxed as interest income (T5 issued)
Fees
Management Fee (MUA)
1.50% per annum of Mortgages Under Administration
Performance Fee
None
Investment Minimums
Class F
$10,000
Class B
$10,000
Class I
$15,000,000
Minimum Subsequent Investment
None
Redemptions & Liquidity
Redemption Frequency
Monthly
Redemption Terms
Conditions apply. See Offering Memorandum for details
Fund Codes
Class F
QWE834 (No Load)
Class B
QWE835
Additional Information
Credit Facility
$100 Million
FAQs
AP Capital Mortgage Fund is a Canadian Mortgage Investment Corporation (MIC) that provides investors with exposure to a diversified portfolio of short-term, residential mortgages primarily in urban markets of Western Canada. The fund’s objective is to provide stable monthly income and capital preservation by lending to creditworthy borrowers and securing the loans with residential real estate.
A Canadian mortgage fund earns income primarily from interest paid by borrowers on the underlying mortgages. AP Capital Mortgage Fund focuses on short-term, residentially secured mortgages, so investors participate in the interest collected, net of expenses. Instead of owning properties directly, you’re effectively lending to borrowers and receiving monthly distributions funded by their mortgage payments.
The portfolio consists of residentially secured mortgages in Western Canada, with a focus on urban markets in British Columbia and to a lesser degree, Alberta. Property types include primarily detached homes and serviced lots, with a minority allocation to townhomes and condos. The fund uses a “quality first” approach: conservative loan-to-value ratios, focus on creditworthy borrowers, and a mix of primarily first-position mortgages complemented by some second-position loans.
AP Capital Mortgage Fund may be appropriate for:
- Investors seeking consistent, reliable monthly income
- Those who want exposure to Canadian residential real estate without owning properties directly
- Investors comfortable with fixed-income–like risk rather than equity-style volatility
- Canadians looking to hold a Canada mortgage fund in registered plans such as RRSPs, RRIFs, LIRAs, and TFSAs
Key potential benefits include:
- Consistent Monthly Income: The fund has delivered 15+ years of consecutive monthly distributions, targeting stable cash flow for investors.
- Real Estate–Backed Security: Every mortgage is secured against residential property, providing collateral behind each investment.
- Diversification & Scale: The fund has funded over $1.2B across more than 2,700 mortgages, spreading risk across many borrowers and properties.
- Canadian, Western-Focused Exposure: Direct exposure to quality credit, secured by residential properties in BC and Alberta, primarily single family detached homes.
- Registered Plan Eligible: Can be held in common Canadian registered accounts, making it easier to integrate into a tax-efficient portfolio.
All investments involve risk, and a Canada mortgage fund is no exception. Key risks include:
- Credit Risk: Borrowers may default on their mortgages, potentially leading to losses if the property’s value does not fully cover the outstanding loan and costs.
- Real Estate Market Risk: A downturn in Canadian housing markets, particularly in Western Canada, could impact collateral values and recovery rates.
- Interest Rate & Funding Risk: Changes in interest rates or lending conditions can affect demand for mortgages, renewal rates, and overall returns.
Distributions from AP Capital Mortgage Fund are paid monthly, and investors can choose to receive them in cash or reinvest them through a Dividend Reinvestment Plan (DRIP). As a MIC, the fund distributes its income to shareholders, and for Canadian Open Investors, distributions are taxed as interest income (reported on a T5 slip). Investors in Canadian registered accounts (such as RRSPs and TFSAs) receive distributions on a gross basis, without tax withholdings.
AP Capital accepts new investor subscriptions on the 1st and 15th of every month. That means there are twice-monthly entry points into the fund, and you start earning income from that subscription date.
Why this is important:
Why this is important:
- More frequent entry points: Many alternative investments only accept new capital once per month or even once per quarter. With AP Capital, you have up to 24 subscription opportunities per year instead of 12 or 4.
- Reduced cash drag: Because you can subscribe on the 1st or 15th and start earning right away, there is typically less time where your money sits idle waiting to be put to work.
- Clear, predictable timing: Investors and advisors know exactly when subscriptions are processed and when income begins to accrue, making planning easier.
One of the distinguishing features of AP Capital Mortgage Fund relative to other Mortgage Funds is that investors start earning right away.
Here’s a simplified example:
Here’s a simplified example:
- You complete your investment and are included in the November 15 subscription.
- From November 15 onward, your capital is put to work and you begin accruing income.
- On the next distribution date (e.g., December 1), you receive a prorated distribution for the period from November 15 to November 30. Effectively a half-month of income for that first partial month.
AP Capital Mortgage Fund charges a management fee of 1.50% per annum of Mortgages Under Administration (MUA). There is no performance fee. Depending on how you invest (for example, through a dealer account), additional dealer or advisory fees may apply.
Yes. Shares of the fund are eligible for most major Canadian registered plans, including RRSP, RRIF, LIRA, and TFSA accounts. Many investors choose to hold a Canada mortgage fund like AP Capital’s within registered plans to shelter the interest-income-style distributions from immediate taxation.
Since its inception in 2007, the fund has delivered a long history of consistent distributions and capital preservation. The fund has delivered 15+ years of consecutive monthly distributions, and zero shareholder principal loss since inception. Recent compound and calendar returns (e.g., over 3-, 5-, and 10-year periods) reflect the fund’s focus on steady income through various market cycles.
A REIT typically owns and operates income-producing real estate (such as apartment buildings or commercial properties) and earns rental income, while AP Capital Mortgage Fund lends against real estate rather than owning it. Key differences:
- Exposure: AP Capital holds mortgage loans secured by property; REITs own the properties themselves.
- Operational Burden: The fund does not deal with tenants, vacancies, or property management; it focuses on underwriting and managing mortgages.
- Cash Flow Source: Investors receive monthly income primarily from interest and fees on mortgages, not from rental income.
- Tax Treatment: As a MIC, the fund distributes its income and investors are typically taxed on that income at their personal rate as interest income, while REITs have different structures and may retain some earnings.
Risk management is built into the fund’s underwriting and portfolio construction:
- Conservative Loan-to-Value (LTV): Lending amounts are kept below property values to create a cushion if valuations decline.
- Quality Borrowers & Assets: Emphasis on creditworthy borrowers and high-quality residential properties in stable, urban markets.
- Diversification: Exposure is spread across hundreds of mortgages, property types, and geographic areas, reducing idiosyncratic risk within the portfolio.
- Secured Positions: Most mortgages are in first position, meaning the fund is first in line to be repaid from sale proceeds if enforcement is required.