In this section, you will find answers to the most frequently asked questions (FAQs) about Amur Capital and our funds.
Frequently Asked Questions (FAQs)
Amur Capital was registered as an EMD in 2019, but the management of Amur Capital and Amur Financial Group have been operating in the mortgage industry for multiple decades. Our oldest fund, Ryan Mortgage Income Fund, was incorporated in 1984. Since then, over $3 billion in mortgages have been arranged and funded.
A MIC is a company created specifically for mortgage investment and lending in Canada. For borrowers, MICs are a valuable source of alternative financing that can be more flexible than the big banks. For investors, MICs can be a way to invest in a diversified and secured pool of mortgages. For more information about MICs, click here.
- When you invest in one of Amur Capital’s funds, your money is pooled together with other investors’ capital. We use that pool of capital to loan money to select borrowers that fit our lending criteria.
- When we lend money, we place a mortgage on the borrower’s property and the borrower makes payments of interest and principal back to the fund. The mortgage is our security – there is always property backing the loans. Also, since we have several mortgages outstanding at any given time, your investment is not tied to any one borrower – it is diversified.
- Our funds then pay 100% of the net income (after all expenses and fees) from those mortgages back to our investors.
Yes, shares in Amur Capital’s funds are qualified investments, with certain restrictions. However, not all financial institutions will accept registered investments in our funds. Amur Capital is happy to provide a list of trust companies who accept all registered investment products.
Most other investments, such as stocks and bonds, are affected by factors that may not be directly related to the investment itself such as investor sentiment and broad market performance. This can make traditional investments volatile and uncertain.
By contrast, real estate returns tend to be less volatile. Since the performance of a MIC is directly related to its portfolio of mortgages, a MIC can often provide a higher dividend payout than other investments, with less volatility and uncertainty.
Investment in our fund offerings is available to residents of Alberta, British Columbia and Ontario and must be made on a private placement basis. Please contact us for more information regarding your specific circumstances.
MICs provide an opportunity to diversify your investment portfolio. It’s also an option that can provide security and robust returns without the troubles of a direct investment in real estate.
An investment in our MIC fund offerings is secured by mortgages placed on residential and commercial properties, and often by additional security such as personal and corporate guarantees, general security agreements and assignments of material contracts such as insurance policies. The Amur Capital team includes experienced underwriters in the loan approval process, and the approval process for all lending is rigorous. We are confident in our underwriting practices and while this investment is not guaranteed, we invite you to contact us to determine if the investment is suitable to you.
Our funds are predominantly focused on residential mortgages, but certain of our funds have the ability to invest in non-residential mortgages including commercial mortgages on apartment buildings, commercial and industrial properties. We do not invest in any development projects.
Dividends are paid monthly on the 15th of each month for the prior month’s earned income. The monthly distribution rate is set by the board of directors on a quarterly basis. Additionally, there is an annual top-up to the distribution once the fund audit is complete.
Mortgage investment funds are not meant for a short-term investment timeline. The speed at which we are able to redeem shares is a function of the volume of redemption requests and the available cash held within the fund. The requirement outlined in the articles of incorporation specify that payment must be made within 90 days of receipt of a redemption request. Additionally, the board of directors reserves the right to halt redemptions if more than 5% of the preferred shares of an issuer have been redeemed in any fiscal year. Finally, if any redemptions would jeopardize the tax status of the MIC, the board can halt redemptions. Please refer to the Offering Memorandum of each issuer for further details.
No. The MICs are private companies and shares cannot be traded.
MICs have a special status under the Income Tax Act. The Act provides that the MIC can pass 100 per cent of its income along to shareholders without payment of corporate income taxes. As no corporate taxes have been paid, there are no dividend tax credit implications and so for clarity, the Canada Revenue Agency has directed that the income be reported as interest income.
No. This is not a GIC or bond investment. The yield is determined entirely by the performance of the investments in the fund.
Borrowers are those who do not meet the narrow parameters of traditional lenders and the chartered bank guidelines, despite an ability to manage timely payment, and equity in real estate as security. With recent tightened lending rules being imposed on financial institutions by the federal government, many borrowers have turned to a MIC for alternative borrowing solutions. Industry trends are creating growth opportunities for non-bank lenders.
Investing in a MIC is not for everyone. Your current net worth, income needs and risk tolerance are just a few of the many factors to determine if this is the right type of investment for you.
We would be happy to sit down with you to discuss your potential investment.