AIC Limited

AIC Limited

April 03, 2006 17:05 ET

AIC Announces Increases to Dealer Compensation and Changes to Redemption Schedule

BURLINGTON, ONTARIO--(CCNMatthews - April 3, 2006) - AIC Limited today announced increases in dealer compensation for purchases made by low load and deferred sales charge as well as changes to the low load redemption schedule for purchases of all AIC mutual funds made on or after April 17, 2006.

"AIC is pleased to announce this new compensation structure -- which features doubling the upfront commission on low load and enhancements to trailing commissions -- as another of our initiatives designed to anchor our business with those advisors committed to long term wealth creation on behalf of their clients," says Jonathan Wellum, AIC's Chief Investment Officer. "Over the past several years, AIC has looked for ways to respond to the changing needs of advisors who support AIC Funds while also ensuring alignment to AIC's investment philosophy and principles. We introduced a number of new products such as AIC Dividend Income Fund, AIC Global Focused Fund and AIC PPC Portfolio Pools which have been well received in the market. We have also entered into sub-advisory partnerships with three well-respected U.S. based value investment managers -- the firms of Ariel, Loomis Sayles and Third Avenue. AIC's goal is to be the foremost value manager in Canada offering leading investment products spanning the globe and managed by some of the best value managers in the world. We now believe that our product breadth, long term performance, portfolio management strength and this new compensation structure for advisors position AIC firmly in the market."

Changes to Low Load Dealer Compensation

Upfront advisor commission has increased to 3.00% from 1.50% on all AIC mutual funds purchased by low load sales charge on or after April 17, 2006. In addition, upon maturity of those units, the low load trailing commission (for all funds except money market funds) will automatically increase to match the existing front end trailing commission. Examples of the low load trailing commission are below:



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Examples: Trailing Commissions -- Low Load Sales Charge
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AIC Diversified Canada Year 1 equals 0.00%
Fund (Canadian equity Year 2 equals 0.75%
fund) Year 3 equals 0.75%
Thereafter equals 1.00%
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AIC Bond Fund (Fixed Year 1 equals 0.00%
income fund) Year 2 equals 0.25%
Year 3 equals 0.25%
Thereafter equals 0.50%
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AIC PPC Core Growth Year 1 equals 0.00%
Portfolio Pool Year 2 equals 0.65%
(fund-of-fund Year 3 equals 0.65%
structure) Thereafter equals 0.98%
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Please visit www.aic.com, for a complete trailing commission schedule.


Changes to Low Load Redemption Schedule

For units purchased on or after April 17, 2006 under the low load sales charge, the following new redemption schedule will apply:



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Low Load Redemption Schedule
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If units are redeemed during the Percentage of the Net Asset
following periods after date of Value at time of Redemption:
purchase:
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First 18 months 3.00%
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After 18 months to 36 months 2.50%
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Thereafter Nil
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Changes to Deferred Sales Charge (DSC) Dealer Compensation

After Year 7, AIC will automatically increase advisors' DSC trailing commission to match the existing front end trailing commission for all AIC mutual funds (excluding money market funds) purchased on or after April 17, 2006.



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Examples: Trailing Commissions Schedule
- Deferred Sales Charge
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AIC Diversified Canada Fund Year 1 equals 0.500%
(Canadian equity fund) Year 2 equals 0.525%
Year 3 equals 0.550%
Year 4 equals 0.575%
Year 5 equals 0.600%
Year 6 equals 0.625%
Year 7 equals 0.750%
Thereafter equals 1.00%
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AIC Bond Fund (Fixed income Year 1 to Year 7 equals 0.25%
fund) Thereafter equals 0.50%
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AIC PPC Core Growth Portfolio Year 1 to Year 7 equals 0.53%
Pool (fund-of-fund structure) Thereafter equals 0.98%
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Please visit www.aic.com, for a complete DSC commission schedule.


The trailing commissions and redemption schedules applicable to purchases made by low load or deferred sales charge prior to April 17, 2006, including any switches on those purchases remain unchanged.

AIC commenced operations in 1985 and has grown to become one of Canada's largest privately-held mutual fund companies with assets under management exceeding $9 billion.



AIC Limited
1375 Kerns Road
Burlington, Ontario, L7R 4X8
Head Office: 1-888-710-4242
www.aic.com
info@aic.com



Contact Information

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