INTRODUCING UM MIC A  Mortgage Investment Corporation (MIC)  as a Shariah Compliant Investment Vehicle
UM Investment - Overview <ul><li>UM Financial is a Canadian Islamic financial Institution  </li></ul><ul><li>Managing a re...
What is a Mortgage Investment Corporation (MIC)? <ul><li>MICs are special companies created under a federal statute, to en...
Purpose of a Shariah compliant Investment Vehicle (MIC) <ul><li>A conventional MIC routes investors’ funds into real estat...
Salient Features (1) <ul><li>No shareholder may hold more than 25%.  </li></ul><ul><li>At least 50% of the assets must com...
Why Real Estate ?
Salient Features (2) <ul><li>All investments must be in Canada, but it may accept foreign investments.  </li></ul><ul><li>...
How it all works
UM Investment Advantages (1) <ul><li>High Investment Returns:  Private investors have received a return of 9%  </li></ul><...
UM Investment Advantages (2) <ul><li>Professional Management:  Staff are capable and knowledgeable in finance and Shariah ...
Moving Forward - Conclusion <ul><ul><li>As the Muslim community continues to grow in Canada, grassroots demand for Shariah...
Thank You <ul><li>UM Investment Inc. </li></ul><ul><li>801-789 Don Mills Rd </li></ul><ul><li>Toronto, ON </li></ul><ul><l...
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Shariah Compliant Investment

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  • Shariah Compliant Investment

    1. 1. INTRODUCING UM MIC A Mortgage Investment Corporation (MIC) as a Shariah Compliant Investment Vehicle
    2. 2. UM Investment - Overview <ul><li>UM Financial is a Canadian Islamic financial Institution </li></ul><ul><li>Managing a real estate portfolio of $120 million </li></ul><ul><li>UM Investment is the investment arm of UM Financial </li></ul><ul><li>UM MIC is a Mortgage Investment Corporation (MIC) </li></ul><ul><li>All products are Shariah Compliant </li></ul>
    3. 3. What is a Mortgage Investment Corporation (MIC)? <ul><li>MICs are special companies created under a federal statute, to enable individuals to invest in a portfolio of mortgages. </li></ul><ul><li>The portfolio is managed with the invested share capital. </li></ul><ul><li>The proceeds of repaid and discharged mortgages are utilized to fund new mortgages </li></ul><ul><li>A MIC is simply a mortgage mutual fund. </li></ul>
    4. 4. Purpose of a Shariah compliant Investment Vehicle (MIC) <ul><li>A conventional MIC routes investors’ funds into real estate mortgage portfolios offering stable returns and low risk profiles. </li></ul><ul><li>A Shariah-compliant MIC fulfills a similar purpose ensuring that the process stays within the framework of Islamic jurisprudence. </li></ul><ul><li>Due diligence is performed by the Shariah advisory board. </li></ul>
    5. 5. Salient Features (1) <ul><li>No shareholder may hold more than 25%. </li></ul><ul><li>At least 50% of the assets must comprise of residential mortgages, and/or liquid assets. </li></ul><ul><li>It may invest up to 25% of its assets directly in real estate, but may not develop land or engage in construction. </li></ul><ul><li>It is a flow-through investment vehicle and distributes 100% of its net income to its shareholders. </li></ul>
    6. 6. Why Real Estate ?
    7. 7. Salient Features (2) <ul><li>All investments must be in Canada, but it may accept foreign investments. </li></ul><ul><li>It is a tax-exempt corporation. </li></ul><ul><li>Dividends received on shares are taxed as income earned for the shareholder. </li></ul><ul><li>Annual financial statements must be audited. </li></ul>
    8. 8. How it all works
    9. 9. UM Investment Advantages (1) <ul><li>High Investment Returns: Private investors have received a return of 9% </li></ul><ul><li>Track record: None of UM mortgages have defaulted. </li></ul><ul><li>Financial Leverage: None of the portfolio is financed through debt - resulting in healthy financial ratios </li></ul><ul><li>Diversification: Mortgages are spread across Ontario to various locations </li></ul><ul><li>Risk reduction: UM employs high risk assessment criteria which are stricter than industry norms. </li></ul>
    10. 10. UM Investment Advantages (2) <ul><li>Professional Management: Staff are capable and knowledgeable in finance and Shariah laws, supervised by an independent Shariah advisory board. </li></ul><ul><li>Asset backed security: Mortgages held under UM are backed by real estate collateral resulting in a stable portfolio. </li></ul><ul><li>RRSP/RRIF/RESP/TFSA eligible </li></ul><ul><li>Dividends: Return on investment is paid out 3 Times/yr to investors with option to reinvest dividends for higher returns. </li></ul>
    11. 11. Moving Forward - Conclusion <ul><ul><li>As the Muslim community continues to grow in Canada, grassroots demand for Shariah based products will naturally increase </li></ul></ul><ul><ul><li>The development of this Shariah compliant investment vehicle is a direct response to such demands and a contribution to the growth of Islamic finance in North America. </li></ul></ul>
    12. 12. Thank You <ul><li>UM Investment Inc. </li></ul><ul><li>801-789 Don Mills Rd </li></ul><ul><li>Toronto, ON </li></ul><ul><li>1.866.88 ISLAM </li></ul><ul><li>[email_address] </li></ul>

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