The Celernus Mortgage and Income Trust (CMIT) launched May 1, 2013. The Fund aims to provide investors consistent monthly income while simultaneously protecting capital, primarily through investments in mortgages with a loan to value measure that provides a desirable degree capital. In addition to first and second mortgages, CMIT may also invest in other asset backed debt, government and corporate bonds and security debentures, convertible debt, common equities, warrants, preferred shares, trust units, REITs, derivative instruments and other securities.
CMIT is designed to provide a steady stream of interest income with a high degree of safety. By investing in short term mortgages with terms predominantly between six and twelve months and maintaining a loan to value ratio for the portfolio of less than eighty percent, CMIT offers a high degree of safety. Due to the short term nature of the mortgages, the principle invested is not subject to the swings in value due to changes in interest rates that medium and longer term fixed income investments are subject to. Each individual mortgage that the fund invests in is carefully underwritten and selected to meet the fund’s standards for safety and return. The majority of the mortgages are secured by residential single family dwellings. The remainder of the mortgage portfolio is composed of multi-family residential, commercial, land and construction financing. The fund does not intend to utilize leverage for the purpose of increasing returns; however, some leverage may be employed temporarily from time to time for the purpose of facilitating redemptions.Fund Files