AIC Limited

AIC Limited

November 17, 2008 14:52 ET

AIC to Offer Tax-Free Savings Account

BURLINGTON, ONTARIO--(Marketwire - Nov. 17, 2008) - AIC is pleased to offer the new Tax-Free Savings Account (TFSA) which allows Canadians the opportunity to not only access some of the leading value investing managers in North America through AIC Funds but also to grow their investment savings on a tax sheltered basis outside their RSP. Effective today, investors can contact their financial advisors to complete and submit AIC TFSA Applications with contributions accepted starting January 2, 2009.

The TFSA is a new savings vehicle that was first proposed in the 2008 Federal Budget. This vehicle allows Canadian residents 18 years of age and older to contribute up to $5,000 annually from their taxable income to a TFSA. The $5,000 per year limit is in addition to any RRSP contribution room an investor may have. Using their TFSA, investors can withdraw TFSA savings at any time for any purpose without being subject to tax. As well, any income or capital gains earned in the TFSA will not be taxed.

"Given the recent market turmoil and the fact that valuations are quite low, now is an ideal time for value investors to consider establishing a TFSA," says Jonathan Wellum, Chief Executive Officer and Chief Investment Officer, AIC Limited. "History has shown that markets traditionally rebound so this current period sets the stage for potential growth for value investors. AIC is pleased to offer new TFSA investors a choice of some unique equity funds that we have developed together with some of the best value managers in North America - managers with proven track records such as Third Avenue Management, Ariel Investments, Brookfield Redding and Loomis Sayles & Company. AIC also boasts a family of conservative fixed income funds, under the direction of Randy LeClair, AIC Senior Vice President and Portfolio Manager. Fixed income funds would also be ideal for investors interested in a TFSA. For example, AIC Global Bond Fund, under Randy posted a one-year return of 13.7% as at October 31, 2008.(i)"

Current investors with investments outside their RSP will also benefit by establishing a TFSA enabling them to transfer existing funds, up to $5000, to gain the tax shelter provided.

The TFSA provides Canadians with an opportunity to save and invest for both short and long-term needs. "The amount withdrawn from a TSFA, including income or capital gains, can be put back at a later date, without reducing an investor's contribution room," says Mr. Wellum. Unused contribution room will be carried forward indefinitely.

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 $4 billion.

(i)Returns summary for AIC Global Bond Fund, as at October 31, 2008: 1 year equals 13.7%; 3 year equals 2.1%; 5 year equals 1.9%; Since introduction equals 3.2%.

Contact Information

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