FSI Mortgage Fund Trust (Class G)

FSI Mortgage Fund Trust provides investors with access to Canada’s alternative mortgage lending market through a portfolio primarily composed of short-term residential mortgages. The strategy focuses on borrowers experiencing temporary credit or liquidity challenges who require financing outside traditional banking channels. Mortgages are generally structured with approximately one-year terms, with the objective of providing borrowers time to rehabilitate their credit and transition back to conventional financing. Class G Units target an annual distribution yield of 10.5%, or 11.02% when distributions are reinvested through the DRIP.

•  Target Monthly Income: Class G Units target a 10.5% annual distribution yield, with monthly distributions, or 11.02% through the DRIP. 
• Alternative Private Credit Exposure: Access a portfolio of residential mortgage investments outside traditional public fixed-income markets. 
• Short-Term Lending Strategy: Mortgages are typically issued for approximately one-year terms, supporting regular portfolio turnover and borrower credit rehabilitation. 
• Established Referral Network: FSI benefits from relationships with more than 60 collection companies and law firms that provide a pipeline of prospective borrowers.
• Risk Management Process: Mortgage applications undergo borrower credit analysis, property appraisal and debt-to-equity assessment prior to approval. 
• Yield Protection Mechanism: The Manager’s 2% management fee is not ultimately retained if the applicable targeted annual distribution rate is not achieved.

The Trust operates through a master-feeder structure, investing primarily in limited partnership interests of FSI Mortgage Fund LP. The LP originates and holds a portfolio of primarily subordinated residential mortgages secured by Canadian real estate. As of December 31, 2025, the Trust reported approximately $48.3 million in total assets and $45.4 million in net assets attributable to unitholders. The portfolio consisted of approximately 329 active residential mortgage loans as of late 2025/early 2026.