A MIC is considered an alternative investment. Alternative investments are investments that do not fall into one of the three traditional asset types: stocks, bonds and cash.
Alternatives are an established and growing industry. Because alternatives can be complex, they are usually held by institutional investors or by accredited investors. Some alternative sectors have limited regulation or lack liquidity.
The Canadian Securities Administrators provide useful information about types of investments and asset classes and have published a guide called "Investments at a Glance" that contains details about the risks associated with alternative investments.
Alternative investments, including MICs, may generate a higher rate of return than traditional investments. Potential investors should carefully review the underlying risks and tax implications of any alternatives they want to add to their portfolio.
Even though you may want to purchase an alternative investment, you may not be able to do so. Your exempt market dealer (EMD) dealing representative (DR) can help you determine if an alternative investment is suitable for you.
In Canada, and specifically in Ontario, regulators have increased their review and oversight of alternative investments sold to individual investors by exempt market dealers.
An exempt market dealer (or EMD) is a category of securities dealer set out in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations.
It is the obligation of the EMD to review a potential investor's "Know Your Client" application to determine suitability of an investment for that investor.
Before opening an account with Advanced MIC, you will meet with one of the registered dealing representatives from Advanced Capital Corp. (ACC). ACC is a registered exempt market dealer and is the agent for AMIC. ACC is a related and connected company to AMIC by virtue of shared ownership and control.
Your ACC dealing representative will review your financial goals and will help determine if an investment in AMIC shares is suitable for you.