The New Providence Income Fund (NPIF), launched earlier this year, has recorded a 10.53 percent return for investors in the first two quarters of this year.
Sterling Financial Group further announced that the third fund created by the Bahamas-based financial services provider is targeting an annual return of up to 15 percent. Thus far, NPIF appears to be on track.
Executives at the fund said it's latest acquisition, confirmed this week, is a $2 million second mortgage on a private lake-front residence in Canada.
NPIF has been aggressively targeting residential and commercial loan opportunities internationally since the launch.
"The fund continues to perform very well and yield strong returns to our investors month over month," the report stated. "The current lack of liquidity in the credit markets and the restrictive lending practices by major financial institutions continue to bode well for the future growth of the fund. These factors allow the fund to grow its high quality of both commercial and residential loans."
The average loan to value for the loans, the report continued, is currently just under 25 percent. For the recently $2 million loan in Canada, the loan to value ratio is 53 percent.
Executives at the fund claim investors are now in a "flight to quality" in the search for safe assets. With a "robust pipeline" of loan opportunities for the rest of the year, fund managers now have at least six loans under its portfolio.
Thus far, the loans have been spread out across the globe, from Fiji, to the U.S., to Canada and The Bahamas.
David Kosoy, the chairman and CEO of Sterling Financial Group, noted that the fund also has access to $50 million in warehouse loans that can be moved over at any time.
The new fund is targeting at least $500 million in investments. NPIF has tried to provide added flexibility for investors by setting a minimum investment of $100,000. Previous funds, Kosoy noted, required a $500,000 to $1 million commitment.
"Now a lot of people feel a lot more comfortable putting a lower amount to start, the top up. You have to be accepted as an investor. If you're accepted, at the first of every month you can add a minimum of $25,000," the CEO said.

Click here to read more at The Nassau Guardian