Ashford W. Meikle, Business Reporter

Jamaican-Canadian investor, Raymond Chang, addressing a recent investors' forum hosted by First Global Financial Services. - Winston Sill/Freelance Photographer

Raymond Chang, chairman of CI Investments, says his fund has outperformed Michael Lee Chin's AIC Funds because of the diversification strategy that the company employs.

"I don't want to take a shot at Mike ... we have a different investment philosophy and a different business model and it is reflective in the number of funds we have," Chang told a group of First Global investors on Monday night, reluctantly responding to queries from a forum participant. "We have a broader choice of mandates."

Chang and Lee Chin's relationship extends beyond the mutual fund market: for example, Chang's sister, Thalia Lyn - owner of the quick-service franchise, Island Grill - sits on the board of National Commercial Bank, which is 75 per cent owned by AIC.

Spread of companies

Elaborating on his earlier comments, Chang told Wednesday Business after the Investors' Briefing: "We diversify our products; Michael doesn't have a diversification of products. He makes big bucks on a limited number of companies, while we spread our own."

With fee-earning assets of C$82 billion and assets under management of C$62 billion, the publicly-listed CI Investments is Canada's third largest investment fund company.

With a 15 per cent growth in assets under management and net sales of C$2.2 billion last year, CI's Financial Fund is the top-selling non-banking fund in Canada. In fact, CI's performance bettered the industry last year, which had fund sales of C$21 billion, a 10 per cent decline from C$23.4 billion recorded in 2005.

Stinging criticisms

AIC, which Lee Chin purchased in 1987, has about C$9 billion under management - making it one of the largest private mutual fund companies in Canada - has faced stinging criticisms from analysts and journalists over its investment philosophy of buying stocks into few companies and holding them for the long term.

The fund had peaked at C$14.1 billion, but lost ground as investors cashed in their portfolios, apparently dis-illusioned by the AIC's buy-and-hold strategy in companies such as the supermarket chain, Loblaws.

Lee Chin stepped back from the company last year, handing over the reins to Jonathon Wellum, but said then in a Sunday Business interview that it was not an acknowledgement that he might be the cause of AIC's poor showing in the last five years.

He remains as executive chairman, but is giving greater focus to AIC's investments outside Canada.

ashford.meikle@gleanerjm.com