AIC Limited

AIC Limited

June 11, 2007 16:01 ET

AIC Limited Announces New Income Choice Fund

BURLINGTON, ONTARIO--(Marketwire - June 11, 2007) - AIC Limited today announced the launch of a new mutual fund, AIC Canadian Income Choice Fund, that not only provides Canadians with a choice of income stream but also provides flexibility in how that income stream is taxed in order for individual investors to achieve maximum tax efficiency.

"AIC has been a leader in providing tax efficient mutual funds for more than 20 years," says Jonathan Wellum, Chief Executive Officer and Chief Investment Officer. "As more and more Canadians work with their financial advisors to select funds that pay a distribution, AIC wanted to provide these investors with a unique alternative - one that combines an income stream choice with a tax choice tailored to each investor's unique needs. It's all part of AIC's commitment to helping Canadians achieve wealth over the long term through focused and disciplined value investing and tax minimization."

AIC Canadian Income Choice Fund is available in three classes of shares:

- Capital Growth Shares
- Capital Gains Shares, and
- Canadian Dividend Shares.

"With AIC Canadian Income Choice Fund set up in a corporate structure, investors can switch classes of shares without triggering taxes," said Milan Legris, Managing Director, AIC Tax and Estate Planning Group. "This is a great feature because investors' needs change with time. Some investors may only want growth of capital and, in fact, may not want to receive income distributions until a later point in their life. Other investors may seek to have an annual distribution but then want to switch to quarterly distributions. The new AIC Canadian Income Choice Fund allows the investor to tailor the income stream to his/her own needs and the taxable situation that they face."

The new AIC Canadian Income Choice Fund will be managed by AIC's portfolio management team and will invest primarily in publicly-traded common and preferred shares of Canadian corporations, as well as fixed income securities of governments and Canadian companies. The Fund may also invest in royalty and income trusts.

Three classes of shares

If an investor chooses the Capital Growth Shares through the AIC Canadian Income Choice Fund, he/she will not receive any distributions. Investors have the potential for capital appreciation via increases in the net asset value of the Fund's units.

Investors who choose the Capital Gains Shares would receive a capital gains distribution on an annual basis. The maximum target distribution paid to this share class would be up to a maximum of 12% of the net asset value per share (NAVPS) of the class.

Investors who choose the Canadian Dividend Shares would receive Canadian dividend distributions on a quarterly basis. The maximum target distribution paid out by this class would be up to a maximum of 10% (annually) of the NAVPS of the class.

All three series of Shares may also receive "residual distributions" annually, if required. Residual distributions refer to the total taxable distributions required to be paid in order for the Fund to qualify for all available tax refunds, after the maximum target distributions have been met by the Canadian Dividend Shares and Capital Gains Shares.

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

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