Jonathan Wellum, chief executive officer at AIC Limited, said the launch of the new funds is timed to exploit downturns in global financial markets. - File

AIC Limited on Monday launched four new global specialty funds focusing on real estate, banking, insurance and wealth management sectors.

The quoted price on each fund was C$10 or US$9.984 per unit.

"With the recent weakness in the global financial services sector, this is also a particularly unique time to be investing in the sector given the very attractive valuations," said Jonathan Wellum, AIC's chief executive officer and chief investment officer.

Real estate fund

The real estate fund will have New York-based Third Avenue Management LLC as sub-adviser and Michael Winer and Jason Wolf as portfolio managers, while the other three will be overseen by AIC's Chris Lowe, Greg Placidi, James Dancy and John Spitman.

Third Avenue and AIC have had a business relationship since 2005 when the New York company became sub-adviser to AIC's Global Focused Fund.

Above-average returns

"While Third Avenue's mantra is 'Safe and Cheap' and AIC's is 'Buy, Hold and Prosper', we believe that both our firms share a long-term, value-investing approach, anchored on delivering above-average returns over the long run," said David Barse, president and chief executive officer, Third Avenue Management in a joint press statement.

Barse's company, which since 1998 has distributed a real estate fund of its own, manages US$27 billion of assets, while Michael Lee Chin's AIC has some C$7 billion under management, down from a $14 billion.

AIC said the three new financial funds are designed for a targeted distribution of 5.0 per cent to 8.0 per cent per annum, payable monthly.

AIC already operates two other specialty funds - the World Financial Infrastructure Income and Growth Fund launched January 2007 and its Diversified Science and Technology Fund, which hit the market in 2000.

business@gleanerjm.com

The four new funds:

^{AIC Global Real Estate Fund}

^{AIC Global Banks Fund}

^{AIC Global Insurance Fund}

^{AIC Global Wealth Management Fund}