Posted on 23/06/04
It's not how it performs, it's about commission
When AIC Ltd. started to lose investors, the company didn't look at changing course on poorly performing mutual funds to set the ship right.Instead, as it bled $330-million through the first five months of this year, AIC opted to boost the amount of money it paid the stockbrokers, insurance agents and financial planners who embrace its "buy, hold and prosper" mantra. Long-term trailer fees paid to advisers rose by 0.025 percentage points each year, to 0.625 per cent for those who kept their clients in AIC funds for six years.
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