A mortgage trust invests in mortgages with a maturity date that is normally around five years. These trusts are basically a property investment and are affected by the current mortgage rate and underlying value of the mortgaged properties. The fund manager is able to diversify the investment across a range of geographical locations and types of property (eg retail, commercial, office blocks etc). These investments can pay regular income and in some cases can provide a short- term guarantee of return.
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