WFP Income Fund Announces a 7.52% Net Annualized Return through 1st Quarter 2016
From: wilshirefp.com
The WFP Income Fund, managed by Wilshire Finance Partners, paid investors a 7.52% net annualized non-compounded return through the first quarter of 2016. The net annualized compounded return for the first quarter of 2016 was 7.56%. The net annualized compounded return for the fund since its inception on September 23, 2013 through March 31, 2016 was 8.65%.
The WFP Income Fund is a short term alternative fixed income investment that seeks to protect the investor’s principal while also providing attractive risk-adjusted returns primarily through investments in loans secured by first trust deeds and mortgages within the United States.
The return obtained by the fund was on an unlevered basis and was primarily the result of interest income received on the first trust deeds and mortgages in the fund’s portfolio.
At the end of the first quarter of 2016, the portfolio had a weighted average loan-to-value of approximately 58.84%, a weighted average maturity of approximately 24 months, and 0% non-performing assets. The fund had an average loan size of approximately $776,381, consisting of loans secured by residential, office, retail, light industrial and warehouse properties located predominantly in the State of California.
Through March 31, 2016 all loans in the fund were performing, however, management identified one loan it has classified as special mention. A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the fund’s credit position at some future date. Special mention loans are not adversely classified and do not expose the fund sufficient risk to warrant adverse classification.
During the first quarter of 2016 the fund experienced approximately $9.29 million in loan repayments, with approximately $7,646,070 occurring in early March. Together with new investments entering the fund in March, those repayments created excess liquidity for the fund which created a cash drag (or under-deployment) as the additional cash was not redeployed into new loans during the month of March.
