The Capital Alliance Funds
Capital Alliance manages two privately held limited liability companies - the Institutional Mortgage Fund (IMF) and the Advisors Mortgage Division (AMD), collectively the "Funds". Each fund holds residential and commercial mortgages in its portfolio until maturity.
The Funds specialize in providing bridge or mezzanine financing, secured by single and multi-family residential properties and mixed-use properties located primarily in California, with a loan-to-value of 75% or less. Each Fund is independent of and not responsible for the liabilities of the other Fund.
Formed in 1996 and 2006, respectively, the IMF and AMD have paid consecutive monthly distributions since inception. The currently annualized amount based upon Net Capital Contributions, for the IMF is 7% per year, and 7% for the AMD. Reducing volatility of total returns, through stable dividend income and without a significant increase or decrease in share price, is characteristic of mortgage pools like the Funds as compared to other fixed-income investments.
The following chart contrasts the annual volatility generated from two Vanguard bond funds compared to the stable total return of the Funds over the same period of time.
