Contact Us › Suite 108 - 2627 Ellwood Drive SW, Edmonton, AB T6X 0P7  •  Phone: (780) 433-1222  •  Fax: 1 (866) 229-1295  •  Email: info@kvcapital.ca

About KV Mortgage Fund

Investment in the Fund provides investors access to the characteristics of mortgage investments:


Investment

 

Investment


We place emphasis on generating returns through investments in mortgages.

Product


Preferred shares in a Mortgage Investment Corporation with monthly dividend payments.

Management

President: Aleem Virani, CA, CBV


  • Member of the Canadian Institute of Chartered Accountants
  • Member of the Canadian Institute of Chartered Business Valuators
  • Previous professional experience with a TSX listed Income Trust
  • Previous professional experience with Deloitte and Touche Tohmatsu

CEO: Shafin U. Kanji, Macc, CA, CBV


  • Member of the Canadian Institute of Chartered Accountants
  • Member of the Canadian Institute of Chartered Business Valuators
  • previous professional experience with two publically traded companies
  • previous professional experience with KPMG

CFO: Scott Alanen, CA, CBV


  • Member of the Canadian Institute of Chartered Accountants
  • Member of the Canadian Institute of Chartered Business Valuators
  • previous professional experience with MNP LLP and Kingston Ross Pasnak LLP

Underwriting

Underwriting Process


We employ an experienced team of Chartered Accountants and Chartered Business Valuators to conduct an underwriting process that consists of:

1. Initial applicant screening
2. In depth review of proposed project that includes:

  • Feasibility assessment
  • Evaluation of borrower’s experience and ability to carry out project
  • Identification of alternative exit strategies and time frames

3. In depth review of security pledged that includes:

  • Appraisal and environmental reports
  • Physical property inspections
  • Borrower financial information
  • Title search
  • Corporate search

4. Proforma impact on portfolio
5. Development of lending terms
6. Approval by President
7. Investment Committee Approval (where required or recommended by President)

Diversification

Diversification


As a preferred share holder, you are investing in shares of the Fund, which lends money to borrowers and secures the loans through mortgages placed on Real Estate.  The Fund has a portfolio of different mortgages.  Accordingly, the risks present for any one investor is diversified across the entire portfolio.

Interest

Alignment of Interest


The principals of the Fund have invested over $1 million of their own money in the Fund to not only benefit from the security and returns provided, but also to demonstrate their vested interest in its success.

Governance

Corporate Governance


The Fund is committed to strong corporate governance and protecting the long-term security of investor’s capital.  To this end, the fund is goverened by an independent board of directors and has engaged reputable professional service firms, including KPMG as auditors and McLeod Law LLP as solicitor.

The directors of the Fund are:

Chair: Paul Allard. B.A., MBA


  • Vice President of Allard Developments 
  • Over 15 years of experience in executing residential and commercial real estate development projects.
  • Former director of Vero Energy Inc. and current director of the Highbury Foundation.

Director: Marc Prefontaine


  • Senior Director of MCAP Edmonton Real Estate Finance Group 
  • Full cycle mortgage banking industry experience including originating, underwriting, adjudication, servicing, asset management and default management.

Director: Ralph Young, MBA


  • 20th Chancellor of the University of Alberta, Chair of the University of Alberta Property Trust Inc. and serves on the board of Directors for Melcor Developments Ltd., Melcor REIT, The Edmonton Regional Airport Authority, ZCL Composites Inc. and the Board of Governors for the Citadel Theatre.
  • Member of the Rotary Club of Edmonton and the Association of Professional Engineers of Alberta.  In July 2013 Mr. Young retired from the position of CEO with Melcor Developments Ltd, after a 42 year career. 

Director: Guy Scott


  • Founding Partner of WAM Developments Group
  • Member of the Canadian Institute of Planners, with a business career that has centered around real estate development and mortgage investments throughout Western Canada and the United States.

Director: Shafin Kanji, MAcc, CA, CBV


  • CEO of the Corporation
  • Management Representative

Director: Aleem Virani, CA, CBV


  • President of the Corporation
  • Management Representative

Regulatory

Regulatory


KV Capital is a registered Exempt Market Dealer, Restricted Portfolio Manager and Investment Fund Manager with the Alberta Securities Commission (ASC), British Columbia Securities Commission (BCSC) and Ontario Securities Commission (OSC) as applicable.

About KV Mortgage Fund


KV Mortgage Investment Fund Inc. (the Fund) is a qualified Mortgage Investment Corporation (MIC) as defined under Section 130.1 of the Income Tax Act Canada. The Fund was established January 8, 2009 and has a fiscal year end of February 28th.  Annual report

The Fund

The Fund actively invests in syndicated mortgages that are secured by real estate, and in so doing builds a portfolio of mortgages that each investor proportionately owns.

Maintaining the status of the Fund as a MIC is a primary objective of management, and allows investors to enjoy the tax free pass through of earnings offered by the MIC structure. The corporation is able to pay $nil taxes in respect of each year by distributing 100% of income to investors via monthly dividends. Dividends received by individual investors are taxed as interest income.

Professional Management

The Fund recognizes its fiduciary duty to investors, and accordingly places emphasis on retaining professional management that possess, real estate, finance and accounting experience. To manage day to day activities, the Fund has entered into a formal management and advisory agreement with KV Capital (a related party by virtue of common ownership and management).

Registered investment Opportunities

Investors can also elect to invest in the fund via registered plans (RRSP’s, RESP’s, TFSA’s etc). These investments can provide a vehicle in which the effects of tax deferral and compounding of interest may be realized.

Benefits of Diversification

In addition to diversifying an investors portfolio away from traditional products (stocks, bonds, etc.) the Fund provides a vehicle for investors to take advantage of the returns provided by mortgage investments spread out over a diversified portfolio. Each investor in the Fund owns a proportionate share of the Fund’s entire portfolio.

Leveraging Duration

The structure of the Fund provides investors the ability to participate in the returns from mortgages with terms under two years, while removing the burden of “active management” that typically accompanies investments with terms under two years.

Security of Investments

The Fund holds mortgages on real property as security against each loan in its portfolio.

The Fund operates under specific guidelines, in which it will at all times:

  • remain a resident of Canada;
  • maintain a minimum of 20 shareholders;
  • limit the holdings of any one shareholder to 25% or less of the Funds issued shares;
  • only make investments secured by Canadian real estate;
  • maintain a minimum portfolio investment of 50% in residential properties and/or cash with CDIC insured entities;
  • not hold shares of non-Canadian corporations; and
  • restrict operations to investment activities.
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