AIC Limited

AIC Limited

May 25, 2009 09:00 ET

AIC Announces Waiver of Fees for AIC Preferred Income Fund

BURLINGTON, ONTARIO--(Marketwire - May 25, 2009) - In response to the unusually low interest rate environment in Canada and the U.S., effective June 1, 2009, AIC Limited will waive a portion of the management fee on the AIC Preferred Income Fund in order to increase the yield for investors.

"We've received a great deal of positive feedback on the new AIC Preferred Income Fund since its launch last month and we're confident that implementing this change to the Fund's management fee will serve to make an already great concept even better," said Jonathan Wellum, AIC's Chief Executive Officer and Chief Investment Officer. "AIC Preferred Income Fund is focused on reducing risk and volatility while also generating a predictable income stream. For this reason, many advisors see the Fund as an ideal solution to help investors ease their way back into the markets."

AIC Preferred Income Fund invests primarily in preferred shares of Canadian companies. "Preferred shares are generally safer than common shares because they rank higher up the capital structure," said Mr. Wellum. "Now, more than ever, is the time to tap into the opportunity that these issues provide."

The management fee waiver will affect the following units of AIC Preferred Income Fund:

Previous Management
Fund Units Management Fee (with
Fee Waiver)
Mutual Fund Units 2.00% 1.75%
Class F Units 1.00% 0.75%

On some units of the AIC Preferred Income Fund, AIC Limited pays dealers trailer fees from the management fees collected. The trailer fees will also be proportionately reduced on a temporary basis.

AIC Limited will continue to monitor this situation closely. AIC Limited may in its discretion at any time and without prior notice increase the AIC Preferred Income Fund's annual management fee to its previous level or make further reductions. Trailer fees will be adjusted in accordance with any future changes to the annual management fee.

AIC Preferred Income Fund offers investors:

- A portfolio of primarily Canadian preferred shares - having a portfolio of approximately 20-25 quality positions may help clients avoid "single-issuer" risk and reduce volatility.

- High and predictable income stream of 5% annual distribution (paid monthly).

- Main Focus of the portfolio: Financial (Bank & Insurance), Utilities (Power & Pipelines), Consumer/Retail, Diversified (Holdco); secondary focus is Oil & Gas, Telecom, and Real Estate.

- Safer capital structure: preferreds generally have greater priority in corporate capital structure than common shares.

- Tax efficiency (through its dividend tax treatment).

AIC Preferred Income Fund is managed by award-winning portfolio manager Randy LeClair, AIC Senior Vice President and Portfolio Manager, who has decades of experience in the fixed income space. Mr. LeClair, who also manages the AIC Global Bond Fund, received a Canadian Investment Award in 2008.

Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Please read the prospectus before investing. The AIC Logo and BUY.HOLD.AND
PROSPER. are registered trademarks of AIC Global Holdings Inc. used under license by AIC Limited.

Contact Information

  • Media Contact:
    AIC Limited, Burlington ON
    Terri Oswald, Director, Media Relations
    (905) 331-4242, ext. 4345 or 1-888-710-4242, ext. 4345