MIC Capital Raising Analysis
When an issuer distributes securities, there is a reporting obligation for the issuer or the underwriter to prepare and submit a form (Form 45-106F1). Schedule 1 to the Form requires the issuer to disclose information regarding each purchase of the securities including their name, address, phone number and email address.
For most provinces, the location of the distribution is determined by the residency of the purchaser of the securities. In the case of Manitoba and Quebec, the securities regulators require the same Form to be filed where the purchaser resides. In Saskatchewan, the requirement for the filing of the Form is based on the location of the distribution.
As this data is publicly available, albeit somewhat disjointed and unstructured, we wanted to conduct a quick analysis of the funding trends related to mortgage investment corporations (MICs). As there is no consolidated database of private securities across the country, we honed in on the Ontario Securities Commission (OSC) filings.
The filings are completed on a monthly basis and include the fund name, reporting month date, total funds raised, and the total number of investors subscribed for that particular month. The data is available starting from April 2014 and runs current to the previous month.
As part of our analysis, we wanted to assess various trends and relationships between what little fields are provided. Some of the metrics and analysis we sought to conduct include:
- Average investment made by an investor
- Average investment per month/quarter/year
- Number of investors
- % growth year over year
In addition to indicating trends and simple metrics, we wanted to uncover several funding trends. Several examples of this include:
- Is there a certain period of the year where capital raised is more prominent compared to other times?
- Is there a correlation between total funds raised and the average funds per investor?
- How are individual MICs performing compared to others in several categories besides the apparent measure of total funds raised to date?
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MIC Analysis Dashboard Functional Overview
This dashboard (first tab) incorporates the three main variables we utilized for fund analysis, including funds raised, number of investors, and the total funds invested per investor. In the bottom right-hand corner, you can expand the dashboard to full-screen mode.
In the top row of the dashboard, you will find a set of filters with a light blue background. These filters can be used to filter down the data for all the data visualization panes making up the dashboard. Below, you will find a brief explanation of the filters in sequential order from left to right.
Single or multiple MICs can be selected for analysis. By default, all MICs are selected.
This is the date when a MIC files their funding report with the Ontario Securities Commission (month). It may be used to filter only the dates you are more keen to examine. By default, all the dates are included with the earliest available date being April 2014 until June 2019.
You may find that the data may be slightly skewed as the number of MICs providing data in the first two years is significantly lower compared to later years. Below, we have conducted a quick table summarizing the total number of MICs with data submissions by year.
We have grouped MIC funds into three groups (bins) based on total funds raised. All funds are checked by default, but the user can choose one or more fund groups.
X and Y axis
This determines what variable you wish to assign on the horizontal and vertical axis with the following choices – funds raised, number of investors, average funds per investor.
Top ‘N’ filter allows you to indicate how many of the top companies you wish to view based on the chosen variables on x and y-axis. The results are shown on the lower left corner of the dashboard.
Two options are made available – by MIC (multicoloured) and by ‘difference from average.’ The difference from average selection will indicate how far away the MIC is from the average (either positive or negative).
It changes the view by year, quarter, or month.
An explanation of each chart is provided below, starting from the top-left chart and then proceeding in a lateral order until the last chart found in the bottom-right of the dashboard.
X-axis by Y-axis of Each MIC All Time
This scatterplot shows the performance of the selected MICs for the selected time period (all-time by default) and shows where it is located, whether above or below the average of the chosen variables. Selecting a point (MIC fund) will filter and highlight the rest of the charts on the dashboard.
X-axis by Y-axis Viewed by Time
This scatterplot shows the performance of MICs by year, month or by quarter. This will give you an idea on the time of the year, or the year when a chosen MIC has the most funds raised, investors, or fund per person.
These are the results of the ‘Top’ filtered companies according to the variables chosen in the and x and y-axis filters. Clicking on a company in these bar charts will filter the rest of the visualizations of the dashboard.
These two adjoining line graphs indicate the running total of funds raised, average investment per investor. You may select a different view filter to view the results either by year, month, or quarter.
There are two colour indicators available in the ‘Colour by’ filter. If the filter selection is ‘Diff from Avg,’ then the colour (green for positive and red for negative) represents how far they are from the average running total (represented by a grey line).
Ontario MIC Fund N-Year Comparison Analysis Functional Overview
We developed this dashboard (second tab) with the purpose of comparing a certain MIC’s performance in a chosen year compared to previous years. One use case would be to select several MIC companies in order to compare their funding trends against one another.
MIC & Date
The first two filters (MIC and Date) function in the same way as the first dashboard.
This is the year that will be compared. The chosen year is highlighted in orange for the charts found in the first row of the dashboard (‘MIC Funds and Investors Over Time’).
Compare to ‘N’ Year/s Ago
The highlighted year can be compared to a maximum of 5 years ago (extent of the data). The year that is being compared to the highlighted year is coloured dark grey in the first row of the dashboard (‘MIC Funds and Investors Over Time’).
The charts in the first row can be viewed either by year, quarter or month.
An explanation of each chart is provided below, starting from the top chart and then proceeding to the three charts found in the bottom row (left to right).
MIC Funds and Investors Over Time
The selected MICs are organized in the first row of the dashboard with data organized based on the date fund submissions were reported.
The vertical line found above each date represents the number of investors while the circle indicates the total amount raised by the MIC in a particular time period.
The average number of investors, as well as the amount in dollars raised by the MICs, are shown as reference lines on this graph.
Bottom Three Charts
These three charts are structured the same and only differ by the variables represented – total funds raised, number of investors, and the average funds raised per investor.
You can use the ‘compare to n years ago’ filter to alter the comparative assessment view.
The grey bar represents the year that the highlighted year was being compared to while the coloured bars are the results of the highlighted year. Aside from the resulting metric indicated directly atop the bar, it also indicates the % difference as compared to ‘N years ago.’