Unless otherwise noted, all data is verified as of January 17, 2020:
The composition of mortgage portfolio can change daily due to advances, discharges and renewals. Please contact us if you require additional or more current information.
Advanced MIC provides reports on the composition and performance of its portfolio to the board of directors at least monthly and to preferred shareholders at least quarterly. The table below shows the monthly portfolio summaries (provided to the board of directors with the dividend package each month, and to shareolders at the end of each quarter) since December 31, 2018.
AMIC's strategy is to focus on lending in Ottawa and surrounding areas of Eastern Ontario. It should be noted that this regional focus does not provide diversification to AMIC's portfolio. Current and potential AMIC shareholders should review this regional concentration as a risk factor and in context with any other investments with a similar geographic profile.
Data as the reference date in the chart. Ask an ACC dealing representative or an AMIC staff member for updated portfolio information.
From the AMIC Offering Memorandum:
AMIC's business objective is to obtain a secure stream of income by optimizing its mortgage portfolio within the MIC criteria prescribed by the Tax Act. AMIC's primary business is earning income through making residential and commercial loans to borrowers.
There is an established need for real estate mortgage financing that is not readily provided by banks, trust companies, credit unions and other traditional lenders.
Short term mortgage financing is a continuing need of individuals, builders and real estate developers. As a result of their needs for flexibility and prompt approvals, they often require the services of private lenders and organizations such as AMIC.
The rate of return AMIC earns from its mortgage loans fluctuates with prevailing market demand for short term mortgage financing. In some cases, AMIC's mortgage loans may not meet the financing criteria for conventional mortgages from institutional sources, and as a result, these loans generally earn a higher rate of return than that normally attainable from conventional mortgage loans. AMIC attempts to minimize risk by being prudent in both its credit decisions and in assessing the value of the underlying real property offered as security.
The near prime market segments of the Canadian lending industry in which Advanced Alternative Lending (the MIC manager) operates are under serviced by the large financial institutions in Canada. The near prime market segments differ from prime market segments because of lower borrower equity, lower borrower credit scores, lower presales/ pre-leasing and size of the loan.
These segments are populated by small to mid-sized borrowers in smaller, non-urban geographic markets, who require custom tailored financing solutions to meet their capital requirements.