Three decades of carefree summers for our investors

A 29-year track record of reliable income and strong returns.*

Summer has begun! Airlines are booked for family vacations abroad while the beaches here in Ontario will host crowds of people. Cottages and campsites will see loved ones enjoying outdoor sports, campfires, and quality time. That’s what summer is all about – resetting, clearing our heads and choosing how we want to spend our valuable time and energy – whether that’s through self-care or making memories with loved ones.

But how do we achieve a carefree summer in a world where we are overly scheduled and carrying the mental load of current events, money, and more specifically, investments? We know we should build for our future and our children’s futures, and that pressure can be stressful…but it doesn’t have to be.

Since 1994, our goal at Magenta has been to empower our investors to build for their tomorrows and achieve peace of mind by applying a conservative portfolio strategy to deliver reliable income and strong returns. As one of Canada’s largest and most established MICs, we have maintained our strong track record by financing quality residential real estate in carefully selected Ontario markets.

Continue reading for more information on our performance history, portfolio strategy, examples of financing and fund details, as well as contact information to start investing today!

Investing with Magenta offers:

• Regular income
• Liquidity
• Flexibility

Performance History

 

To learn more about investing with Magenta, e-mail [email protected].

Are you an Investment Advisor? Click here for more information.

How We Manage Our Portfolio

We have a risk-mitigated portfolio strategy. This means we know our markets intimately and we assess our borrowers and their homes thoroughly. We acquired this knowledge over three decades and evolved to become industry experts, assuring you and your family peace of mind.

• Stable Ontario markets
  We lend exclusively in Ontario with a focus on areas with a large public-sector workforce. Ottawa, Kitchener, Guelph, London and Kingston make up most of the geographical areas in the portfolio.
• Quality residential real estate
  Magenta mortgages are secured by highly marketable, quality residential real estate with a heavy overweighting of first mortgages secured by owner-occupied single-family homes.
• Short-term lending
  Typically, our borrowers sign for a one-year mortgage term. A one-year term allows for regular turnover, generating application and renewal fees. It also allows our rates to stay tied to prime so that Magenta returns are closely linked to market interest rates.
• Industry expertise
  We have a 29-year track record of delivering reliable and consistent returns.

Portfolio Composition:

Examples of Financing

Our Investor Relations Team

Our Investor Relations Team has combined experience of over 60 years in the mortgage and financial industry. Our collective experience includes strategic oversight, operational risk management and building and maintaining client relationships. We pride ourselves on our excellent customer service and operational excellence. This means you have easy access to not only speak with someone but receive best-in-class service and communication that reassures you every step of the way – from the moment you connect with us to the moment you feel like you’ve finally built for your tomorrow.

Big or small, every investment is a step toward your world of possibility. There is no better time to invest in Magenta than now. After all, 2023 is the year of Magenta.

To find out more on how you can invest in Magenta reach out to Allison Daines Allen at [email protected].

Allison Daines-Allen
Manager, Investor Relations
[email protected]
Direct: 613-699-4939
Toll-free: 1-888-267-1744

Investment Advisors:  

       

Click here for our subscription forms.

To learn more or speak with someone at Magenta reach out to Greg Sinclair or Daniel Werner:

Greg Sinclair
COO
[email protected]
Direct: (613) 699 4963
Toll-free: 1-888-267-1744

Daniel Werner
Account Manager, Investment Advisors
[email protected]
Direct: (613) 699 6485
Toll-free: 1-888-267-1744

 

*This article does not constitute an offer to sell securities and should be read in conjunction with the offering memorandum dated March 28th, 2023, available for download at this link or from our office. Investors should read the offering memorandum before investing. The foregoing historical performance achieved by the Corporation is not a guarantee of future results.

 

What is a MIC?

A MIC (Mortgage Investment Corporation) is an investment fund where investors pool their money to lend to borrowers as private mortgages. MICs are commonly used in Canada as a form of real estate investment.

When investors pool their money, they are purchasing shares, which creates an alternative fixed-income investment (fixed income securities pay investors a fixed or defined amount on predetermined dates).

MICs were created as a result of Section 130.1 of the Income Tax Act, a federal statute, to allow investors to invest in a pool of mortgages.

• Shareholders invest their capital into the MIC (the Fund)
• The MIC may also borrow money from the banks in the form of loans (different MICs have different agreements with banks);
• The MIC uses investor capital and the loan from the banks to fund the Mortgage Portfolio; meaning the money within the Fund is loaned out as mortgages to borrowers;
• When the borrower begins to make their mortgage payments, the interest and fees, are pooled back into the Fund;
• The MIC pays its shareholders their dividends and repays the loan interest to the banks.

Regulatory Requirements

MICs are subject to regulatory requirements and oversight, ensuring compliance with securities laws and investor protection. In Ontario, the Ontario Securities Commission is the regulatory body responsible for the management and operation of MICs. The Income Tax Act requires mortgage investment corporations to distribute 100% of net income, as verified by independent audit, to shareholders by way of dividends. Typically, MICs are also overseen by a Board of Directors, responsible for strategic oversight.

Choosing the Right MIC

Choosing which MIC is right for you is not as simple as who has the highest return on investment (ROI). It’s important for investors considering a MIC to carefully assess the portfolio composition, the MIC’s track record and its mortgage underwriting process. To learn more about choosing the right MIC for you, read here. It is also strongly recommended that investors assess their own overall risk profile before they choose to invest in a MIC. Consulting with a financial advisor or professional is beneficial to the investor in order to understand the specific details and risks associated with a particular Mortgage Investment Corporation.

About Magenta

Since 1994, our goal at Magenta has been to empower our investors to build for their tomorrows and achieve peace of mind. Magenta has delivered strong returns and reliable income to our investors while safeguarding capital by applying a risk-mitigated portfolio strategy. The portfolio is constructed of residential, primarily first mortgages located exclusively in carefully selected Ontario markets.

Investing with Magenta offers:

• Stability
• Regular income
• Liquidity
• Flexibility

Our team of experts will work with you every step of the way to keep you informed and assist you with investment information so you can determine what best suits your needs.

 

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