Mike Bock, an investment advisor in Calgary, has sold AIC Ltd. mutual funds for years, but his confidence in the company is slipping.
Lousy performance has prompted investors to pull $1.64-billion from AIC funds
since the beginning of 2002, with net redemptions averaging $130-million a month in the first half of 2004.In fact, withdrawals have outpaced sales for 27 consecutive months, a dubious achievement outdone only by the 28-month drought still ravaging AGF Management Ltd. Mr. Bock
, who runs Ironman Financial
, a financial planning firm affiliated with Aegon Dealer Services Canada Inc.
, is unsure whether AIC
will bounce back, and he
does not really know what to tell clients perturbed by their dismal returns.
"That has been a sore point in my portfolio for some time now," he
Down deep, Mr. Bock
believes investors ought to think long-term, just like AIC preaches.But it's hard to make a case for sticking with AIC
, Canada's 13th-largest fund company with $11.7-billion in assets under management, if it doesn't start producing for its unitholders.
"Going forward, I think that AIC
is in a position where they should perform well," says Mr. Bock
, who is somewhat heartened by AIC's improving results this year.
"I'm in a hold pattern with AIC
for the time being," Mr. Bock