TORONTO, ONTARIO (June 2, 2020) – CMI announced today that they will be launching their third and latest Mortgage Investment Corporation (MIC) fund to the market on July 1, 2020. This MIC fund, the CMI MIC Prime Mortgage Fund, will provide investors with another Class “A” pure-play mortgage investment product for their portfolio.
The mandate for this fund is to provide investors with a conservative, lower-risk fund that is comprised strictly of high quality, moderate risk mortgages – primarily first and second mortgages in prime markets in Ontario. Like other MICs, this fund is 100% backed by actual real estate property.
This fund has been designed to generate net annual returns of 6-6.5% for shareholders, comprised of interest and fee revenue minus expenses. It will achieve this in part by keeping administrative costs to a minimum.
MICs are very similar to mutual funds and other pooled assets like Exchange Traded Funds (ETFs). They are comprised of the capital of several investors who pool their assets into one fund, which, in the case of MICs, is then used to provide mortgages for prospective borrowers looking for mortgage financing. MICs can be included in registered plans and thus are RRSP, TFSA, RESP, RRIF and LIRA eligible.
According to Julian Clas, VP of Capital Markets and Funds at CMI, “Alternative lenders like MICs provide flexible solutions for borrowers.”
MICs provide mortgage borrowers with an alternative solution to those provided by the big banks, credit unions and trust companies; they are often geared to borrowers that may find it challenging to qualify under the rigid criteria characteristic of a traditional bank mortgage.
One of the key benefits of MIC investments like the CMI MIC Prime Mortgage Fund is that they offer investors an investment product with the potential for a higher yield relative to similar products, on a risk-adjusted basis. This can be particularly attractive in today’s low interest rate and low yield markets.
“CMI’s MICs provide investors with diversification options that can avoid much of the volatility of equity markets. Investors with different risk profiles can now invest into a real estate backed, income-generating fund alongside an experienced portfolio manager,” Julian confirms.
As a national leader in the MIC market, CMI is committed to offering clients a broad suite of alternative investment products. They offer investors a viable option to more traditional investments and a compelling way for advisors to enhance their portfolio diversification strategies.
In conjunction with the recent launch of our second MIC fund, the CMI MIC High Yield Opportunity Fund, investors now have access to a family of funds that offer an array of investment options targeted to clients with different investment objectives and risk profiles.
Founded in 2005, Canadian Mortgages Inc. (CMI), part of the CMI Group of Companies, has a long-standing reputation as a leader in the private lending and mortgage investments market. Highly respected in the industry for our transparency and professionalism, we’ve earned the trust of our customers by always treating them with the utmost care and respect. Our CMI MIC family of funds now offers investors and their advisors three unique pooled investment products to choose from, each with its own unique investment strategy and risk profile.
To learn more about investing in a CMI MIC Fund contact us by filling out the form below.