AIC Limited

AIC Limited

April 20, 2009 09:51 ET

AIC Announces New Preferred Income Fund

BURLINGTON, ONTARIO--(Marketwire - April 20, 2009) - AIC Limited today announced the launch of the new AIC Preferred Income Fund, designed to enable investors to tap into the current opportunities available in the preferred share market.

"At AIC, we recognize that many financial advisors and investors would like to ease their way back into the markets while still protecting their current portfolios against additional risk and volatility," said Jonathan Wellum, AIC's Chief Executive Officer and Chief Investment Officer. "With its focus on reducing risk and volatility and also generating a predictable income stream, we believe the new AIC Preferred Income is an ideal Fund to help investors begin to take steps to earning the returns they'll need in order to achieve their long term investment and retirement goals."

Available starting April 20, 2009, the new AIC Preferred Income Fund offers investors:

- Less volatility (because it invests primarily in preferred shares which offer a lower measure of volatility than common shares).

- Reduced risk because the underlying holdings as preferreds (rather than common stock) have greater priority in the corporate capital structure.

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

- Tax efficiency (through its dividend tax treatment)

Lead manager of the new AIC Preferred Income Fund will be Randy LeClair, Senior Vice President and Portfolio Manager. Mr. LeClair is a veteran fixed income manager and recent winner of a Canadian Investment Industry Award for the AIC Global Bond Fund. Mr. LeClair's portfolios are known for quality, having no exposure to non-bank sponsored asset backed commercial paper and no defaults.

The fundamental investment objective of the AIC Preferred Income Fund is to generate steady income and achieve capital preservation and appreciation by investing primarily in preferred shares of Canadian companies, royalty and income trusts and fixed income securities. The Fund may also invest in common shares of Canadian companies.

"Preferred shares are safer than common shares because they rank higher up the capital structure," said Mr. LeClair. "Traditionally, only Canada's largest, most credit worthy public companies can earn access to the preferred share market. AIC is very familiar with all of the issuers in this space. And, as a result, we are confident that the new AIC Preferred Income Fund will come to own the best of those issuers."

AIC commenced operations in 1985 and has grown to become one of Canada's largest privately-held mutual fund companies.

Contact Information

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