Dear unitholders of Romspen Mortgage Investment Fund:
On July 23, 2021, the trustees of the Fund gave notice to those unitholders who had tendered unit redemption requests of their decision to invoke the discounted redemption provision in the Fund’s declaration of trust. After careful deliberation and consideration, the trustees determined that a 3.5% discount to net asset value was appropriate. Retracted redemptions would be subject to a 12-month redemption prohibition.
The trustees also gave notice to run-off pool unitholders that their units would be redeemed at the same discount to the run-off pool net asset value.
On August 16, the Fund paid total redemption proceeds of $175 million. The total discount was approximately $6 million, which is an additional protective buffer for remaining unitholders. Approximately $53 million of tendered redemptions were retracted.
The Fund had ample liquidity to both eliminate the redemption backlog and retain “dry powder” to continue to make attractive mortgage investments. Our duty as trustees is to consider the best interests of the Fund, along with the best interests of all its unitholders — those who require a certain level of liquidity given the Fund’s underlying asset profile, together with those who wish to continue to benefit from the Fund’s long-term track record of consistent returns and capital preservation. And while this balancing act is not always easy, it is not one that we shy away from, and it is always our privilege to work hard in good faith to be honest stewards of your investment capital for many years to come.
Trustees of the Fund