Download Fund Snapshot Guide

Fund Snapshot Guide
Guide to Reading an ROI Fund Snapshot
In an effort to assist advisors and investors, ROI Capital has created this guide to complement the monthly fund snapshots of our TSX-listed and pooled
funds. As our fund snapshots include detailed portfolio investment information, this guide is intended to assist advisors and investors in understanding
the information presented by defining certain terms used in the document.
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Date
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Date: the effective date of the data presented within the Fund Snapshot
Fund Facts
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General
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The top section provides a quick snapshot of the fund. This section
includes total assets, price, fees, and distribution information. Below is a
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breakdown of some of the terms which require greater explanation. All
terms are defined by taking into consideration the underlying investments.
AUM: the aggregate Assets Under Management (“AUM”) for the fund.
Market Price: the Fund’s closing month end market price per unit on the
TSX.
NAVPU: the Fund’s closing month end Net Asset Value Per Unit
(“NAVPU”) which is derived from the fair value of the underlying assets.
For further information regarding fair value please visit our website to view our
most up-to-date financial statements.
Target Annual Distribution: The target annual distribution is the implied
cash flow yield based upon an assumed NAVPU of $10.00 and the
annualized amount of the monthly distribution per unit. The amount of
distributions may fluctuate from month to month and there can be no
assurance that a fund will make a distribution in any particular month.
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Debt Investments (applicable only to mortgages/loans in the portfolio)
WA: Weighted Average (“WA”) is the average calculation for a category, taking into consideration the weighting of each applicable investment in the
portfolio.
Loan to Value: the ratio of a loan/mortgage’s size to the value of the property at the time of funding. The loan-to-value ratio is a measure of risk used by
lenders as it indicates the level of leverage used for a property.
Yield to Maturity: the rate of return anticipated on a debt investment (mortgage/loan) if held until its maturity, expressed as an annual rate. The Yield to
Maturity (“YTM”) calculation takes into account the current fair value of the debt investment, par value, interest rate and time to maturity. The
calculation assumes that all interest payments are reinvested at the same rate as the debt investments current yield.
Time to Maturity: the time it takes for each debt investment (mortgage/loan) to mature, weighted by the market value of each of those debt investments.
Modified Duration: the weighted average term to maturity of the cash flows from a debt investment. The weight of each cash flow is determined by
dividing the present value of the cash flow (at the current yield to maturity) by the price, and is an approximate measure of price volatility with respect to
interest rates. The stated modified duration only applies to the portion of mortgages and debt in the portfolio. This assumes the portfolio’s cash flows are
received as expected to maturity.
ROI Capital
37 Front Street East, 4th Floor
Toronto, Ontario M5E 1B3
roicapital.ca
Phone: 416 361-6162
Fax: 416 361-3013
Toll-Free Phone:
1 866 764-3863
Fund Snapshot Guide
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Equity Investments (applicable only to private real estate
investments in the portfolio)
WA: Weighted Average (WA”) is the average calculation for a category, taking
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into consideration the weight of each applicable investment in the portfolio.
Capitalization Rate (“Cap Rate”): the rate of return on a real estate investment
property based on the expected income that the property will generate.
Cap Rate = Annual Net Operating Income/Property Value.
Net Operating Income (“NOI”): the income earned from a property net of
operating expenses but before deductions for income tax, mortgage interest and
principal, depreciation and amortization, and capital expenditures. This
calculation enables an investor to evaluate and compare a property's income
performance to others in the marketplace independent of tax implications,
financial leverage or one-time capital expenditures.
Occupancy Rate: the percentage of units in a building that have been rented out
compared to the total number of units in the building.
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Top 25 Holdings
This section provides detailed information regarding the top holdings within the
portfolio.
Investment Amount: current investment amount outstanding.
Loan to Value: stated above.
Maturity Date: refers to the final payment date for a mortgage/loan (debt
investment).
Asset Class: differentiates the investment structure for each investment.
1st Mortgage (1st): A mortgage in a first lien position on the property that secures the mortgage. A first mortgage has priority over all other liens or claims on a property
in the event of default.
2nd Mortgage (2nd): A mortgage in a second lien position on the property that secures the mortgage. In the event of default, the original mortgage would receive all
proceeds from the liquidation of the property until it is all paid off. The second mortgage would receive repayments only when the first mortgage has been paid off.
Private Real Estate – Commercial (PRE [C]): an ownership position on commercial real estate property.
Private Real Estate Development – Commercial (PRE/D [C]): an ownership position on commercial real estate property which is currently being developed
Private Real Estate Development – Residential (PRE/D [R]): an ownership position on residential real estate property which is currently being developed
Industry: Illustrates the industry each investment is in.
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Portfolio Allocation
Portfolio allocation data considers a look-through of fund on fund holdings, if applicable, and provides details regarding the asset allocation, industry
allocation, geographic allocation and a maturity summary for all investments.
The maturity summary excludes all real estate holdings as a maturity date only applies to mortgages/loans.
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Disclaimer
This section provides additional disclosure information with respect to important considerations when investing in the Fund.
This Guide is to be used only in conjunction with the applicable ROI Capital Fund Snapshots
ROI Capital
37 Front Street East, 4th Floor
Toronto, Ontario M5E 1B3
roicapital.ca
Phone: 416 361-6162
Fax: 416 361-3013
Toll-Free Phone:
1 866 764-3863