WFP Income Fund Announces a 7.14% Net Annualized Return through November 30, 2016

December 2, 2016, Los Angeles, California – The WFP Income Fund, managed by Wilshire Finance Partners, paid investors a 7.14% net annualized non-compounded return through November 30, 2016.  On a stand-alone basis for the month of November 2016, the fund delivered a 0.59% net return which is the equivalent of a 7.18% net annualized non-compounded return.  The net annualized compounded return for the fund since its inception on September 23, 2013 through November 30, 2016 was 8.63%.

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.

As of November 30, 2016, the portfolio had a weighted average loan-to-value of approximately 59.66% and a weighted average maturity of approximately 24 months.  The fund had an average loan size of approximately $1,054,800, consisting of loans secured by residential, office, retail, light industrial and warehouse properties located predominantly in the State of California.

Through November 30, 2016 management identified one loan it has classified as substandard. A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any.  Loans that are also classified as substandard must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the lender will sustain some loss if the deficiencies are not corrected.

Year-to-date 2016 the fund experienced approximately $17.7 million in loan repayments, representing 42.04% of the average portfolio balance through the period.  The fund has redeployed most of the available cash from the loan repayments.  However, those repayments continue to cause excess liquidity in the fund and at November 30, 2016 the fund held a cash position of 8.8% of total assets versus its target of approximately 2%.

Since the fund’s inception in September 2013 through November 30, 2016, the net asset value (NAV) of the WFP Income Fund remained stable and demonstrated no correlation to the stock markets or bond markets.  Further, the NAV was not sensitive to changes in interest rates.

“The WFP Income Fund delivered a 7.18% net annualized non-compounded return for November 2016 on a standalone basis.  That represents an increase of approximately 0.86% from the low the fund experienced in August 2016,” said Don Pelgrim, CEO of Wilshire Finance Partners.  “Nevertheless, as we generate new lending opportunities we will continue to maintain our core philosophy of striving to protect the invested principal while seeking strong returns relative to other short term fixed income investments,” he added.  “While that approach may cause returns to be below our target of 7.5% to 8%, we believe it will result in a better performing portfolio and ultimately greater consistency for our investors.”

The WFP Income Fund has been approved for both retirement and non-retirement accounts on the following alternative investment platforms:

  • Fidelity Investments (National Financial Services or NFS); CUSIP Number 94699K534
  • Pershing as WFP INCOME FUND LLC; CUSIP Number 929LP9220
  • TD Ameritrade as WFP INCOME FUND LLC NSA; CUSIP Number 93099B102
  • Millennium Trust Company (with affiliate access to the Charles Schwab platform)

For more information on Wilshire Finance Partners or the WFP Income Fund please call (866) 575-5070 or visit www.WilshireFP.com.

About Wilshire Finance Partners and our investment alternatives. 

Wilshire Finance Partners, Inc. (“Wilshire”) specializes in real estate finance and investments and is the manager of the WFP Income Fund, LLC (“WFP Income Fund”) and the WFP Opportunity Fund, LLC (“WFP Opportunity Fund” and collectively with the WFP Income Fund, the “Funds”). The WFP Income Fund invests in a diversified pool of residential, multifamily, and commercial real estate related short-term bridge loans secured by first trust deeds and mortgages. The WFP Opportunity Fund invests in a diversified pool of residential, multifamily, and commercial real estate related short-term bridge loans, participating loans, real estate joint ventures, and direct real estate investments. Wilshire commenced operations in January 2008 and launched the WFP Income Fund and WFP Opportunity Fund in September 2013. Wilshire maintains two sales and operations offices in California.

The WFP Income Fund has been approved for both retirement and non-retirement accounts on the following alternative investment platforms:

  • Fidelity Investments (National Financial Services or NFS); CUSIP Number 94699K534
  • Pershing as WFP INCOME FUND LLC; CUSIP Number 929LP9220
  • TD Ameritrade as WFP INCOME FUND LLC NSA; CUSIP Number 93099B102
  • Millennium Trust Company (with affiliate access to the Charles Schwab platform)

In addition, the WFP Income Fund has been approved for self-directed retirement accounts on the following platforms:

  • Community National Bank; CUSIP Number 11227
  • Equity Trust Company (Sterling Trust) (no CUSIP required)
  • Pensco Trust Company (no CUSIP required)
  • Provident Trust Company (no CUSIP required)
  • Self-Directed IRA Services (no CUSIP required)
  • Shareholder Services Group (no CUSIP required)
  • Trust Company of America (no CUSIP required)

The WFP Income Fund is open to investors, wealth managers and individual investment advisors under both the Fidelity, Pershing, TD Ameritrade and Millennium platforms using standard subscription and transfer procedures.

Investments in the WFP Opportunity Fund or individual trust deed investments are made through Wilshire.

Individual investors may also invest directly with Wilshire, through their advisors or through the above platforms.  Individual investors may be required to meet additional requirements of the platform providers.

 

Safe Harbor Statement

This communication is not an offer to sell or the solicitation of offers to purchase the securities of either of the Funds, individual loan or trust deed investments, or otherwise (individually and collectively, the “Securities”). The purpose of this communication is to provide an overview of the respective Securities and their private placement. Persons interested in learning about the Securities and their private placement will be provided with the respective Private Placement Memorandum (inclusive of exhibits thereto and any supplements, the “Memorandum”), which provides a description of the Securities, the terms of their private placement, a discussion of risk factors, a copy of the limited liability company operating agreement for the fund (as applicable), a subscription agreement and other information related to the Securities.

This communication contains certain forward-looking statements regarding the Securities and the investment objectives and strategies of each of the Funds. The forward-looking statements are based on current expectations that involve numerous risks and uncertainties which are difficult or impossible to predict accurately and many of which are beyond the control of Wilshire, as the manager of the Funds. Although Wilshire believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Wilshire, any placement agent, or any other person, that the objectives and strategies of the respective Securities or the Funds will be achieved.

Investments in the Securities may only be made solely by accredited investors (which for natural persons, are investors who meet certain minimum annual income or net worth threshold), who are provided with the Memorandum and who complete, execute and deliver the subscription documents included therein. Each of the Securities is being offered in reliance on an exemption from the registration requirements of the Securities Act of 1933, as amended (the Securities Act) and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act. The Securities Exchange Commission has not passed upon the merits of or given its approval to the Securities, the terms of the offering, or the accuracy or completeness of any offering materials. Each of the Securities is subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell the Securities. Past performance is not indicative of future results. Investing in any of the Securities, including the Funds, involves substantial risk, including loss of investment, and is not suitable for all investors.

Contact:

Wilshire Finance Partners, Inc.

Donald H. Pelgrim, Jr.

(866) 575-5070

dpelgrim@wilshirefp.com

 

Source: Wilshire Finance Partners, Inc.

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