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Case Study: How these investors picked the right Mortgage Investment Corporation (MIC) for their portfolios

Investing wisely requires more than just luck— it demands strategy, research, and a keen eye for the right investment for your goals. Amur Capital offers a straightforward solution, providing investors with a simple yet personalized way to achieve consistent investment income.

In this case study, let’s explore how three different investors strategically chose Amur Capital MIC funds to suit their unique investment needs and achieve their financial goals.

Amur Capital offers a simple way to grow your money and receive a stable and consistent return. Contact us now, and we’ll help you start in a few minutes.

Key Takeaways:

  1. Personalized investment strategies lead to success in today’s dynamic market environment.
  2. Investor profiles are essential in tailoring investments to match individual risk profiles, time horizons, and financial goals.
  3. Amur Capital offers a diverse range of MIC funds for investors wanting to preserve capital and earn consistent annual returns.

Navigating the investing landscape in 2024

In 2023, investors faced a dynamic landscape characterized by an evolving tech sector that drove the information technology and healthcare stocks to the top. However, other investments like bonds did not fare well due to increasing interest rates. A momentary pause in the Bank of Canada’s rate hikes gave some relief.

With sentiments around interest rates staying higher for longer and rising financial costs to persist in 2024,  PwC Canada predicts that real estate transactions will be held back for the time being. Due to this market environment, investors continue to seek personalized investment solutions and stable opportunities for return, making MIC funds an attractive option due to their consistent returns and low volatility.

Putting the “I” in Investing: Why investor profiles matter

Investors have unique preferences, ethical beliefs, life goals, and risk profiles. In fact, 1 in 4 Canadian investors want increased personalization in investing. With investor profiles, portfolios can be individually tailored to these specifics.

Amur Capital recognizes the importance of investor profiles, which is why we offer tailored investment solutions to meet the diverse needs of investors.

Profiles and priorities for today’s savvy investors

Understanding your investor profile requires assessing several key factors crucial in an investment plan. These are your investment horizon, which dictates how long you intend to keep your money invested; risk tolerance, which refers to your comfort level with market fluctuations; and investment objective, whether you seek capital growth or regular income.

From these factors, investors typically fall into the following investor profiles:

  1. The Cautious Players: Otherwise known as “conservative” investors, these individuals prioritize capital preservation and seek low to medium-risk investment options. They have the lowest risk tolerance among other investors, so they are typically conservative in their approach and prefer investments with a proven track record of stability and reliability.
  2. The Moderates: Balanced or “moderate” investors aim for a blend of capital growth and income generation. They are willing to accept moderate levels of risk in pursuit of their financial goals, which is why they value capital preservation more than aggressive investors.
  3. The Trailblazers: Trailblazers or “aggressive” investors have higher risk tolerance than other investors. They actively seek higher returns by venturing into more volatile markets. They are open to taking on more significant risks and are drawn to investment opportunities with the potential for above-average returns.

While individual financial circumstances can affect the suitability of their investments, today’s savvy investors understand that increased investment knowledge and continued assessment of their personal investor profile can impact their investment income and overall investing success.

Stories of success: Investor Profiles and MIC funds in action

Amur Capital Conservative Income Fund: For the Cautious Player

Mark, a retiree in his early 60s, had a primary financial goal of preserving his capital while generating a steady income stream to support his retirement lifestyle. With a cautious approach to investing, Mark sought lower risk options that would provide consistent yet higher-than-average income without jeopardizing his nest egg.

Upon consulting with Amur Capital, Mark opted for the Amur Capital Conservative Income Fund (ACCIF). With its focus on residential mortgages (44% loan-to-value of the total mortgage portfolio) across prime real estate markets in Canada and a track record of stable returns (8.29% most recent return), Mark found the fund to fit his investment objectives as it is a lower risk option compared to the other funds.

Mark used his Registered Retirement Savings Plan (RRSP) to house his ACCIF fund to maximize his investment income, gaining tax-free growth in his investments and tax-deductible contributions.

The fund’s reliable performance met and exceeded Mark’s expectations, providing him with a consistent income stream through monthly dividends to support his retirement needs while safeguarding his capital.

Amur Capital Income Fund: For the Moderate

Richard, a 45-year-old professional, had a dual financial goal of saving for his child’s education and building a retirement nest egg. While he recognized the importance of stability in his investment portfolio, Richard also sought opportunities for higher returns to secure his financial future and achieve his long-term goals.

After careful consideration, Richard invested in the Amur Capital Income Fund (ACIF). With its diversified portfolio of residential mortgages (53% loan-to-value of the total mortgage portfolio), 40-year track record of consistent returns (11.08% most recent return), and a 10-year average return of 9.61%, the fund offered a balanced approach that resonated with Richard’s investment philosophy.

Richard also utilized the Registered Education Savings Plan (RESP) to invest in ACIF. With the plan’s eligibility for government grants and tax-free growth on his investment income, Richard significantly increased his savings for his child’s future education.

Over time, Richard’s investment in the fund provided him with a steady income stream. It also facilitated capital appreciation through the fund’s dividend reinvestment program (DRIP), allowing him to automatically reinvest his monthly dividends into additional shares of the same fund. Through ACIF, Richard progressed steadily toward his financial objectives of saving for his children’s education and building a retirement nest egg.

Amur Capital High Yield Fund: For the Trailblazer

Sarah, a 35-year-old entrepreneur, has a high-risk tolerance and a primary financial goal of maximizing her investment returns to fund her business expansion plan. With a keen interest in exploring alternative investment opportunities, Sarah was drawn to the potential for significant returns offered by the Amur Capital High Yield Fund.

Intended for investors willing to accept an increased degree of risk, Amur Capital High Yield Fund (ACHYF) seeks to invest in higher ratio mortgages over shorter terms and reduced amortization. With an annual net return target of 13% (with the most recent return at 14.03%) and a weighted average LTV of less than 73% of the total mortgage portfolio, ACHYF was the perfect fit for Sarah’s aggressive growth objectives.

Sarah used her Tax-Free Savings Account (TFSA) to invest in ACHYF. Since ACHYF is eligible for any registered plans, including the TFSA, Sarah could utilize the tax-free withdrawals of the account and tax-free growth on her investments.

Sarah’s investment in the high-yield fund yielded favorable returns, contributing positively to her financial goal. The fund’s performance enabled Sarah to buy additional resources to achieve her short-term goal of expanding her business.

It’s important to note that these stories are hypothetical examples that illustrate the strategic decision-making process investors might undergo when selecting Amur Capital’s MIC funds.

Conclusion: Personalize your investing journey with Amur Capital MIC

Mortgage investment corporations (MICs) continue to be a compelling opportunity for individuals to diversify their portfolios, access the real estate market in Canada, and get consistent and steady returns regardless of their investor profiles.

Amur Capital’s diverse range of MIC funds caters to investors of all risk appetites, offering personalized solutions to help achieve their financial goals. Whether you’re a cautious player, moderate, or a trailblazer in the investment world, Amur Capital has the right MIC fund to support your journey towards investing success.

Contact us today to start personalized investing with Amur Capital MIC Funds.

FAQs

An investor profile helps you identify which investment is suitable for you. It is based on your risk tolerance, time horizon, and financial objectives.

It is beneficial to investors because it ensures that their investments align with their financial circumstances and goals.

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