Aderes funds to be rolled into AIC funds

The Aderes funds are managed by AIC fund manager and value investor Larry Sarbit, who moved to AIC in November. While managing the AIC American Focused Fund and the AIC RRSP American Focused fund, Sarbit continued to manage the Aderes funds with AIC acting as sub-manager. Now, says Marcia Stewart, general counsel for AIC, it makes sense to roll the assets in the Aderes funds into the AIC funds.

“It just made sense from a practical approach because the funds are very similar and have similar investment objective and portfolios,” said Stewart. “It just made sense to merge, especially when we took over as sub-manager.”

Unitholders of the Aderes funds will take advantage of the economies of scale provided by being part of a larger fund. According to a press release, the merger will eliminate the costs currently attached to the Aderes funds.

Aderes unitholders will be asked to approve the proposed merger at a unitholder meeting July 24. If approved, the merger is expected to be completed by August 31. Aderes halted the distribution of new units on June 9. According to Stewart, all five Aderes funds held a total of about $15 million in assets at that time.

The amount, though small, will be a welcome addition to the AIC funds which have been suffering as growth stocks continue to do well at the expense of value investments.

Larry Sarbit will continue to manage the AIC American funds.

The funds will be merged as follows:

• Aderes Focused Canadian Fund into AIC Advantage Fund II
• Aderes Diversified Canadian Fund into AIC Diversified Canada Fund
• Aderes Focused American Fund and Aderes Diversified American Fund into AIC American Focused Fund
• Aderes Money Market Fund into AIC Money Market Fund.