In response to several interest rate cuts in Canada and the U.S., AIC Ltd. will temporarily reduce fund management fees on money market funds to help maintain a positive yield for investors, the company said Thursday.

Over the last year central banks have dropped interest rates to historic lows,” says Randy LeClair, senior vp and portfolio manager of AIC Investment Services Inc.

“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,” LeClair says.

The temporary reduction will cut the management fees to 0.75% from 1.00% on AIC Money Market Fund, AIC U.S. Money Market Fund and, AIC Money Market Corporate Class.

On some series of AIC money market funds, AIC Ltd. pays dealers trailer fees from the management fees collected. The trailer fees will also be proportionately reduced on a temporary basis.

AIC will continue to monitor this situation closely, the company said.

IE