AIC Limited

AIC Limited

August 12, 2009 10:42 ET

AIC Announces Sub-Advisory Arrangement With Manulife

BURLINGTON, ONTARIO--(Marketwire - Aug. 12, 2009) - AIC Limited today announced that it will continue to sub-advise a number of its flagship equity funds, following regulatory and security holder approval of its agreement with Manulife in which Manulife will acquire AIC's Canadian retail investment fund business.

Upon completion of the agreement, expected to close by September 25, 2009, Manulife Mutual Funds would manage all AIC Funds in Canada, however AIC Investment Services Inc. will remain as sub-advisor to the following funds:

- AIC Advantage Fund

- AIC Advantage Fund II

- AIC American Advantage Fund

- AIC Global Advantage Fund

- AIC Diversified Canada Fund

- AIC Canadian Focused Fund

- AIC Advantage II Corporate Class

- AIC American Advantage Corporate Class

- AIC Global Advantage Corporate Class

- AIC Diversified Canada Corporate Class

- AIC Canadian Focused Corporate Class

- AIC Diversified Canada Segregated Fund (75% & 100% Guarantee)

"AIC has been building and managing wealth for Canadians for more than 20 years," said Jonathan Wellum, AIC's Chief Executive Officer and Chief Investment Officer. "We have followed a disciplined and focused investment philosophy for decades and we will continue to do so in our new sub-advisory role on these flagship equity funds (identified above). These Funds will continue to be managed by our experienced in-house team of portfolio managers. The sub-advisory agreement with Manulife provides us an ideal opportunity to not only return to our roots but also to build out our investment advisory services. In turn, Manulife is able to significantly strengthen its product depth and breadth. Manulife is well-established and well-respected within Canada and we remain pleased that Manulife Financial is the purchaser of our retail fund business."

National Bank Financial Inc. acted as financial adviser to AIC in arriving at the agreement.

Upon completion of the transaction with Manulife, AIC Investment Services Inc. is expected to commence operations under a new name to aptly reflect the values and principals of founder Michael Lee-Chin, Executive Chairman. The new company will be a Portland Holdings company.

"Our intent is to build on our core competencies and service the investment advisory market across Canada," said Michael Lee-Chin, Executive Chairman, AIC Limited. "While a number of our staff members are expected to join the Manulife organization, we intend to remain an active employer within the Burlington community as we have been for years."

Known for its value investing philosophy, AIC had launched a number of funds in recent years with firms that included Third Avenue Management LLC; Ariel Investments, LLC; Brookfield Redding LLC; and Loomis, Sayles & Company, L.P. Investment management for the following AIC sub-advised funds will remain in place for the time being:

Ariel Investments will continue to sub-advise:

- AIC American Small to Mid Cap Fund

- AIC American Focused Fund

- AIC American Focused Corporate Class

Third Avenue Management will continue to sub-advise:

- AIC Global Focused Fund

- AIC Global Real Estate Fund

- AIC Global Focused Corporate Class

- AIC Global Real Estate Corporate Class

Loomis, Sayles & Company will continue to sub-advise:

- AIC Global Fixed Income Fund

Brookfield Redding will continue to sub-advise:

- Brookfield Redding Global Infrastructure Fund

- Brookfield Redding Global Infrastructure Corporate Class.

Investment management for the following AIC-managed and sub-advised funds will remain in place for the time-being, but Manulife Mutual Funds will review the line-up to determine the most appropriate next steps. The result of this review should be available shortly:

AIC Trust Funds:

- AIC Canadian Equity Fund

- AIC Value Fund

- AIC Global Wealth Management Fund

- AIC Canadian Balanced Fund

- AIC Global Balanced Fund

- AIC Dividend Income Fund

- AIC Preferred Income Fund

- AIC Global Premium Dividend Income Fund

- AIC Bond Fund

- AIC Global Bond Fund

- AIC Money Market Fund

- AIC U.S. Money Market Fund

- Value Leaders Income Portfolio

- Value Leaders Balanced Income Portfolio

- Value Leaders Balanced Growth Portfolio

- Value Leaders Growth Portfolio

- Value Leaders Maximum Growth Portfolio

- Copernican International Dividend Income Fund

AIC Corporate Funds:

- AIC Value Corporate Class

- AIC Canadian Balanced Corporate Class

- AIC Global Premium Dividend Income Corporate Class

- AIC Total Yield Corporate Class

- AIC Money Market Corporate Class

AIC Segregated Funds:

- AIC American Focused Segregated Fund (75% & 100% Guarantee)

- AIC Canadian Balanced Segregated Fund (75% & 100% Guarantee)

- AIC Global Premium Dividend Income Segregated Fund (75% & 100% Guarantee)

- AIC Money Market Segregated Fund (75% & 100% Guarantee)

AIC Closed End Funds:

- AIC Global Financial Split Corp.

- Copernican World Banks Split Inc.

- Copernican International Financial Split Corp.

- Global Banks Premium Income Trust

- International Financial Income and Growth Trust

- Copernican British Banks Fund

- Copernican World Banks Income and Growth Trust

- Copernican World Financial Infrastructure Trust

- European Premium Dividend Fund

- Copernican International Premium Dividend Fund

"Investors in any AIC or Copernican fund should remain confident that their mutual fund will continue to be well-managed going forward," said Mr. Wellum.

Contact Information

  • AIC Limited, Burlington ON
    Terri Oswald
    Director, Media Relations
    (905) 331-4242, ext. 4345 or 1-888-710-4242, ext. 4345
    toswald@aic.com
    www.aic.com