We have been assisting institutional clients to establish and manage commercial mortgage allocations for more than 50 years. While our capabilities have evolved, the core investment philosophy that drives our approach continues to focus on protecting investor capital while aiming to consistently deliver stable returns. The RBC GAM Private Markets Mortgage Investment team is comprised of a group of specialists dedicated to designing and implementing mortgage solutions. The team is led by two portfolio managers with an average of 25 years of industry experience.

Investment philosophy and style

• Focus on capital preservation and consistent added value through market cycles
• Significant breadth and diversification help mitigate mortgage-specific risk
• Quality-biased, long-term approach with mortgages held to maturity

Investment process

• Top-down origination strategy focused on portfolio construction and setting origination guidance
• In-depth credit analysis drives individual investment decisions, including an assessment of property-specific and borrower-specific material ESG risk factors
• Risk mitigation through negotiation of individual mortgage terms and structure, distinct to each investment decision
• Proactive approach to risk management throughout the life of each mortgage which informs the team's origination strategy moving forward

Mortgages are secured by commercial real estate assets

• Direct claim against a tangible asset
• Mortgages can also include additional security like guarantees and other collateral support
• Core property types include industrial, retail, office, and multi-residential apartment buildings

Most assets are income-producing with stable and predictable cash flows

• Long-term leases provide forward visibility

There is no public market for trading direct commercial mortgages

• Lenders typically have buy and hold strategy
• Lenders predominately employ conservative underwriting standards to limit credit risk through term

Private markets are characterized by illiquidity and information asymmetry

• Mortgage market inefficiencies can be capitalized on to improve returns
• Investors are compensated with an illiquidity premium relative to other more liquid fixed income asset classes

Attractive asset class on a standalone basis or in the context of an overall portfolio

• Most assets are income-producing and have a short duration