Sept. 7, 2004
FOR IMMEDIATE RELEASE
Burlington, Ontario - AIC today announced the launch of the new AIC Dividend Income Fund as well as six additional funds under the new AIC Portfolio Group - all designed to respond to the needs of investors and advisors looking for tax efficient, long-term wealth creation solutions.
"The new AIC Dividend Income Fund was designed to meet the needs of investors looking for lower volatility and an income stream, while the new AIC Portfolio Group Funds are a fund-of-fund structure offering diversification by asset class, geography and fund managers in one simple solution," said Jonathan Wellum, Chief Investment Officer.
"Like all AIC Funds, these new funds will be managed in a tax efficient manner. These new Funds will follow AIC's disciplined buy-and-hold investment philosophy. We undertake proprietary in-depth research to determine and buy excellent businesses in long-term industries. And, we hold those businesses for the long run providing their fundamentals remain strong. Through our investment philosophy, AIC seeks to protect and grow investor capital and minimize taxes payable to our unitholders."
New AIC Dividend Income Fund
The new AIC Dividend Income Fund is designed to generate steady income and achieve capital preservation and appreciation by investing primarily in dividend-paying Canadian equities, royalty and income trust units and fixed income securities.
"The Fund features a highly focused portfolio that we believe helps to reduce portfolio risk, enhance returns and preserve capital," said lead manager James Cole, Senior Vice President and Portfolio Manager. "This Fund will provide a steady income flow to unitholders. The Fund is expected to pay a regular monthly distribution of $0.05 per unit, equal to an annual yield of 6.0% on the initial net asset value per unit at launch of $10. The distributions will comprise Canadian dividend income, foreign dividend income, interest income, capital gains and return of capital."
James Cole established a strong track record at AIC as lead manager of two other funds: the AIC Canadian Focused Fund and the AIC Canadian Balanced Fund. Also on the AIC Dividend Income Fund is Robert Almeida, Senior Vice President and Portfolio Manager.
Six new AIC Portfolio Group Funds
AIC is also launching six funds under the AIC Portfolio Group category. Each of these Funds is designed to meet a particular investment goal - from creating long-term wealth to providing a regular income source. Based on a fund-of-funds' structure, each AIC Portfolio Fund invests in a selection of four or five existing AIC Funds, including well-recognized funds such as AIC Diversified Canada Fund, AIC American Focused Fund, and others. Each AIC Portfolio Group Fund will invest in pre-determined weightings of the underlying funds. For example, the AIC Core Growth Portfolio Fund will hold:
- AIC Advantage Fund, 20%
- AIC Value Fund, 25%
- AIC World Equity Fund, 15%
- AIC Canadian Focused Fund, 20%
- AIC Bond Fund, 20%.
"The AIC Portfolio Group Funds offer diversification by asset class, geography and fund managers in one step," says Mr. Wellum.
The AIC Portfolio Group Funds include three equity funds and three income funds, each designed to meet the varying risk/return profiles of investors:
- AIC Long-Term Growth Portfolio Fund will invest in the AIC Advantage, Diversified Canada, Value, World Equity and American Focused Funds;
- AIC Core Growth Portfolio Fund will invest in the AIC Advantage, Value, World Equity, Canadian Focused and Bond Funds;
- AIC Balanced Growth Portfolio Fund will invest in the AIC Diversified Canada, World Equity, Canadian Focused and Bond Funds;
- AIC Balanced Income Portfolio Fund will invest in the AIC Canadian Focused, Dividend Income, Bond and Global Bond Funds;
- AIC Diversified Income Portfolio Fund will invest in the AIC Value, Dividend Income, Bond and Global Bond Funds; and
- AIC Fixed Income Portfolio Fund will invest in the AIC Dividend Income, Bond, Global Bond and Money Market Funds.
AIC commenced operations in 1985 and has grown to become Canada's largest privately-owned mutual fund company with assets under management exceeding $11 billion.
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Media Contact:
Terri Oswald
Director, Media Relations
AIC Limited, Burlington ON
(905) 331-4242, ext. 4345
1-888-710-4242, ext. 4345
toswald@aic.com
