WellumMichael Lee Chin's AIC Limited said Wednesday it would discontinue its Canadian Income Choice Fund by December 7, suggesting the product had failed to excite the market.
The fund was introduced in June.
The product, said AIC chief executive Jonathan Wellum, was meant to offer investors an "income stream choice with a tax choice" that could be tailored to individual needs.
But: "Since the launch, however, AIC received additional and valuable feedback from advisers across Canada and, as a result," said Wellum, "we've decided to discontinue this particular fund with the plan to relaunch a fuller suite of products in the near future."
He indicated that AIC was assessing replacement products.
The company ceased distributing new Income Choice shares Wednesday, except for "purchases made under existing pre-authorised chequing plans and dollar-cost averaging plans."
Redemption of shares will continue to full termination of the fund in December, AIC said. But existing shareholders are also being given the option to switch to another AIC product.
The company's products are sold locally through NCB Capital Markets Limited, a subsidiary of National Commercial Bank, which is 76 per cent owned by Lee Chin.
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