AIC Limited

AIC Limited

March 05, 2009 12:00 ET

AIC Announces Temporary Reduction in Fees for AIC Money Market Funds

BURLINGTON, ONTARIO--(Marketwire - March 5, 2009) - In response to several interest rate cuts in Canada and the U.S., AIC Limited will temporarily reduce fund management fees on money market funds to help maintain a positive yield for investors.

"Over the last year central banks have dropped interest rates to historic lows," said Randy LeClair, Senior Vice President and Portfolio Manager of AIC Investment Services Inc. "Naturally this has had an effect on investments in money market funds as returns fell with each cut in short-term interest-rates. In response to these market conditions, AIC has implemented a temporary fee reduction. This measure is intended to prevent our money market funds from providing negative returns to investors. We believe this action is in the best interest of investors and a way to ensure continued confidence."

The temporary management fee reduction will affect the following funds:

Fund Name Previous Management Fee Reduced Management Fee
AIC Money Market Fund 1.00% 0.75%
AIC U.S. Money Market Fund 1.00% 0.75%
AIC Money Market Corporate Class 1.00% 0.75%

On some series of AIC money market funds, 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 money maret funds' annual management fees to their previous level or make further reductions. Trailer fees will be adjusted in accordance with any future changes to the annual management fees.

Contact Information

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