PAID CONTENT
Portfolio Manager,
Antrim Investment
As advisors navigate an environment of higher rates, persistent market volatility, and client demand for dependable income, the limitations of traditional fixed income have become increasingly clear. Government and investment-grade bonds no longer provide the stability or yield they once did, while equity exposure introduces volatility that many clients—particularly retirees—are unwilling to tolerate. As a result, advisors are turning to alternative income strategies to complement core portfolios and deliver more resilient outcomes.
Private mortgage pools have emerged as a compelling solution, offering steady income, capital stability, and low correlation to public markets. Among these, the Antrim Balanced Mortgage Fund has become a core holding for advisors seeking to bring pension-style portfolio management into client accounts.
The fund invests in a diversified pool of Canadian residential mortgages, primarily first mortgages with a complementary allocation to second mortgages. These short-duration loans are secured by real property and underwritten with conservative loan-to-value ratios, providing downside protection while generating attractive income. Unlike traditional bond funds, the Antrim Balanced Mortgage Fund maintains a stable net asset value, insulating investors from daily market pricing fluctuations and interest-rate-driven capital losses.
For advisors, this NAV stability is critical. “We’re not trying to be flashy — we’re just doing what works,” says Will Granleese, Portfolio Manager at Antrim Investments. “The goal is to deliver consistent income while preserving capital, regardless of what’s happening in the equity or bond markets.”
That consistency has made mortgage pools an increasingly important component of diversified portfolios. Institutional investors, including pension plans and endowments, have long allocated to private credit strategies for their ability to generate yield with lower volatility. Advisors are now applying similar principles to retail portfolios, using mortgage funds as a stabilizing anchor within the fixed-income or alternatives sleeve.
One of the defining advantages of the Antrim Balanced Mortgage Fund is its yield profile. At a time when many traditional fixed-income strategies struggle to keep pace with inflation, the fund has historically delivered mid- to high-single-digit returns, generated entirely from interest income rather than market appreciation. Because the fund distributes nearly all of its net income, investors benefit from predictable cash flow that supports retirement income and portfolio sustainability.
Equally important is correlation—or lack thereof. Mortgage returns are driven by borrower payments and real estate collateral, not by equity market sentiment or bond duration risk. This structural independence allows the fund to act as a volatility dampener when markets become unsettled. “You can have the stock market sell off sharply, and nothing happens to Antrim,” Granleese notes. “Meanwhile, clients continue earning an income stream that’s meaningfully higher than most traditional fixed-income options.”
Liquidity is another area where Antrim stands apart from many private market investments. While alternatives often come with long lock-ups or limited redemption windows, the Antrim Balanced Mortgage Fund offers T+2 settlement, providing advisors with flexibility for rebalancing, cash flows, or client withdrawals. This liquidity, combined with eligibility for registered accounts such as RRSPs, TFSAs, and RRIFs, makes the fund easy to integrate across a wide range of client portfolios.
For advisors tasked with managing both risk and income, mortgage pools can serve as a practical bridge between traditional bonds and higher-volatility alternatives. They offer contractual income, real asset backing, and short loan durations that allow portfolios to adapt more quickly to changing interest rate environments. Importantly, they do so without introducing the mark-to-market volatility that can undermine client confidence.
As markets continue to challenge conventional portfolio construction, solutions like the Antrim Balanced Mortgage Fund demonstrate how alternative income strategies can enhance diversification and improve risk-adjusted returns. By incorporating a mortgage pool into the alternative sleeve, advisors can offer clients a smoother investment experience—one that prioritizes income, capital preservation, and long-term stability.
In many ways, it’s a return to fundamentals: lending against high-quality real assets, managing risk conservatively, and delivering dependable income. For advisors seeking to emulate institutional best practices while meeting the evolving needs of their clients, Antrim offers a compelling case for rethinking the role of fixed income in modern portfolios.
