What is a MIC?
A Mortgage Investment Corporation (MIC) is an investment vehicle that enables investors to invest in a pool of Canadian mortgages. MICs are established under the Canadian Income Tax Act.
How Does a MIC Work?
A MIC pools investors’ funds and then selects mortgages to purchase with these funds. A MIC is a flow-through investment vehicle and distributes 100% of its net income to its shareholders. VWR provides quarterly distributions. With the option to reinvest the distributions into the MIC.
What is the expected return of a MIC?
This varies, depending on a range of factors. However, within the current interest rate environment, it is reasonable to expect returns in the 6% to 10% range with us.
Call the VWR team toll-free at 1.866.907.5407 to learn more about what determines the rate of return we earn.
Do investors receive dividends from a MIC?
Yes, 100% of the net income is distributed to the shareholders in the form of a dividend. Dividends can be paid regularly on a yearly or quarterly basis. Dividend amounts are determined through an audit of the MIC’s mortgage portfolio by a professional accounting ﬁrm. Dividends not held within registered plans (RRSPs, RRIFs, RESPs, or TFSAs) are taxed as interest income in the hands of the shareholders.
How can shareholders participate in a MIC?
VWR believes in active shareholder participation whenever possible. We encourage shareholders to attend the annual general meeting. Furthermore, our ofﬁce is always open to our shareholders and we encourage anyone with questions to stop by Monday to Friday 9am-5pm.
We also run shareholder events and open houses throughout the year, so be sure to contact Marni for more information.