Before we think about returns, we think about risk
We ask the same question with every investment – how well is the capital protected?
Returns are important, but they should never come at the expense of unnecessary risk. That’s why every loan is assessed carefully before it becomes part of the fund.
The Portico Mortgage Fund invests in loans secured against carefully selected real estate across Turks and Caicos.
Your investment is spread across a portfolio of first-charge mortgages secured against property throughout the Turks and Caicos Islands.
That means you’re not relying on the success of a single loan. Instead, your capital is invested across a range of carefully assessed lending opportunities, helping to spread risk across the fund.
How we manage risk
Construction finance
Construction lending demands careful planning. Before approving a loan, we look closely at the experience of the borrower, the viability of the project and the value of the security at every stage of the build. We don’t assume everything will go to plan, so we make sure there’s room if it doesn’t.
Bridge finance
Bridge loans are often needed quickly, but that doesn’t mean the questions change. We still want to understand why the finance is needed, the property we’re lending against and the people we’re lending to. The timescales may be shorter, but our approach is exactly the same.
Refinancing
Why Turks and Caicos
The market
We’ve lived and worked in the Turks and Caicos property market for many years. That’s given us the chance to see how it has evolved, understand the different areas and build a detailed knowledge of the market.
When we’re considering a lending opportunity, that local knowledge matters just as much as the numbers.
Why Turks and Caicos?
There are plenty of reasons people choose to buy property in Turks and Caicos.
One of the things we’ve always liked about Turks and Caicos is that it’s a straightforward place to do business.
The islands have a legal system based on English common law, use the US dollar and are well connected to major cities across the United States and Canada. Combined with a limited supply of prime property, it’s easy to see why the market continues to attract buyers and investors.
Why people invest here
People invest in Turks and Caicos for different reasons. Some are buying a second home, others are building for the future, and many see the islands as a place to invest for the long term.
For us, those decisions are underpinned by a stable property market, strong international demand and a place we know well. That’s why we’ve chosen to build our business here.
Frequently asked questions.
I am interested in the fund, how much do I need to invest?
The minimum investment for a first-time investor is US$100,000. Once you are invested in the fund, you can increase your investment by amounts starting from US$25,000.
I currently do some direct private lending with another firm, would I make as much if I switch to you?
No investment return can be guaranteed, and direct lending and a mortgage fund work differently.
With direct private lending, your capital is usually tied to one mortgage. You are responsible for deciding whether to make the loan, and your income depends on that borrower continuing to pay. If the mortgage is repaid, your capital may stop earning interest until you find another loan.
In the Portico Mortgage Fund, capital is pooled and spread across a portfolio of mortgages. This helps diversify the exposure and means the fund manages the lending, payments and any loans that run into difficulty. Before investing, you should compare the expected return, fees, liquidity and risks of both approaches.
As an American, can I invest in the fund?
Yes. American investors can invest in the fund, although they must provide the tax information required under FATCA.
How do I know the fund is investing in the way it says?
The Portico Mortgage Fund is regulated by the Turks and Caicos Islands Financial Services Commission and is audited to ensure its investments remain within the terms of the investor prospectus. The fund cannot lend outside those parameters, and every loan held by the fund is approved by its board of directors.
How do you compare with other mortgage funds on the island?
Not every firm follows the same model. Some arrange direct private loans, where one investor funds the mortgage. Others operate pooled funds but take a different view of the loans they are prepared to make.
Portico operates a pooled mortgage fund and takes a selective approach to lending. We keep our fees controlled and focus on how well the capital is protected before considering the return a loan may produce. Investors should review the prospectus, fees and risk profile before comparing one fund with another.
What kind of returns do you anticipate moving forward?
The fund targets annualised returns of 6.5% to 7.5% after management fees and expenses. Returns can fluctuate for reasons within and outside our control, so this range is a target rather than a guarantee. Past returns should not be taken as an indication of what the fund will earn in future.
How likely are forced sales and foreclosures in the fund?
Forced sales have not been common, but no lender can assume they will never happen. A borrower’s circumstances may change, and so can the wider economy.
We lend to borrowers with significant equity in the property and consider the fund’s overall exposure before approving a loan. If a loan does run into difficulty, the security and the way the loan has been structured become particularly important.
How much are the management fees and fund expenses?
The management fee is 1.5%. The fund also has operating expenses, which are kept under review. We need to balance those costs with the liquidity held to meet redemptions, so the total difference between the income earned by the fund and the return paid to investors may be more than the management fee alone.