shariah compliant investment

INTRODUCING UM MICA Mortgage Investment Corporation (MIC)

as a Shariah Compliant Investment Vehicle

UM Investment - Overview

• UM Financial is a Canadian Islamic financial Institution

• Managing a real estate portfolio of $120 million• UM Investment is the investment arm of UM

Financial• UM MIC is a Mortgage Investment Corporation

(MIC)• All products are Shariah Compliant

What is a Mortgage Investment Corporation (MIC)?

• MICs are special companies created under a federal statute, to enable individuals to invest in a portfolio of mortgages.

• The portfolio is managed with the invested share capital.

• The proceeds of repaid and discharged mortgages are utilized to fund new mortgages

• A MIC is simply a mortgage mutual fund.

Purpose of a Shariah compliant Investment Vehicle (MIC)

• A conventional MIC routes investors’ funds into real estate mortgage portfolios offering stable returns and low risk profiles.

• A Shariah-compliant MIC fulfills a similar purpose ensuring that the process stays within the framework of Islamic jurisprudence.

• Due diligence is performed by the Shariah advisory board.

Salient Features (1)1.No shareholder may hold more than 25%.

2.At least 50% of the assets must comprise of residential mortgages, and/or liquid assets.

3. It may invest up to 25% of its assets directly in real estate, but may not develop land or engage in construction.

4. It is a flow-through investment vehicle and distributes 100% of its net income to its shareholders.

Why Real Estate ?

Salient Features (2)

6. All investments must be in Canada, but it may accept foreign investments.

7. It is a tax-exempt corporation.

8. Dividends received on shares are taxed as income earned for the shareholder.

9. Annual financial statements must be audited.

How it all works

UM Investment Advantages (1)1. High Investment Returns: Private investors

have received a return of 9% 2. Track record: None of UM mortgages have

defaulted.3. Financial Leverage: None of the portfolio is

financed through debt - resulting in healthy financial ratios

4. Diversification: Mortgages are spread across Ontario to various locations

5. Risk reduction: UM employs high risk assessment criteria which are stricter than industry norms.

UM Investment Advantages (2)

6. Professional Management: Staff are capable and knowledgeable in finance and Shariah laws, supervised by an independent Shariah advisory board.

7. Asset backed security: Mortgages held under UM are backed by real estate collateral resulting in a stable portfolio.

8. RRSP/RRIF/RESP/TFSA eligible 9. Dividends: Return on investment is paid out 3

Times/yr to investors with option to reinvest dividends for higher returns.

Moving Forward - Conclusion

As the Muslim community continues to grow in Canada, grassroots demand for Shariah based

products will naturally increase

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.

Thank You

UM Investment Inc.

801-789 Don Mills Rd

Toronto, ON

1.866.88 ISLAM

info@uminvestment.com