International Financial Income and Growth Trust announces closing of $25,000,000 initial public offering of trust units

2005-07-29

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SYMBOL: ADC, ASC, GBP.UN, FIT.UN

BURLINGTON, ON, July 29 /CNW/ - AIC Limited (the "Manager") is pleased to announce that International Financial Income and Growth Trust (the "Trust") has completed its initial public offering of 2,500,000 units of the Trust (the "Units") at a price of $10.00 per Unit (the "Offering Price") for gross proceeds of $25,000,000. The Trust has granted the agents an over-allotment option to acquire up to 375,000 Units, which is exercisable at any time during the next 30 days. The Units commenced trading today on the Toronto Stock Exchange under the symbol "FIT.UN". The Trust has been created to provide investors with an opportunity to invest in some of the world's leading retail bank, life insurance and investment management financial service companies based outside North America (the "International Financials") and that AIC Investment Services Inc. (the "Investment Manager") believes have both attractive dividend yields and strong earnings growth momentum. The Trust is a closed-end investment trust whose investment objectives are: (i) to provide holders of Units ("Unitholders") with monthly cash distributions targeted to be $0.05833 per Unit or $0.70 per Unit per annum, representing a yield of 7.0% on the Offering Price of the Units; and (ii) to return at least the Offering Price to Unitholders upon the termination of the Trust on August 31, 2012. The Investment Manager will be responsible for the Trust's overall investment strategy. The Trust will invest in an actively managed diversified portfolio of securities consisting of common shares of the International Financials. As at July, 2005, the Investment Manager's assets under management totalled approximately $9.3 billion of which approximately $4.2 billion was invested in the global financial services industry. The offering was made through a syndicate of agents, co-led by CIBC World Markets Inc., RBC Dominion Securities Inc., and Scotia Capital Inc., and included TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., Berkshire Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Bieber Securities Inc., Dundee Securities Corporation, First Associates Investments Inc., Raymond James Ltd., Richardson Partners Financial Limited and Wellington West Capital Inc.

AIC commenced operations in 1985 and has grown to become Canada's largest privately-held mutual fund company with assets under management of approximately $9.5 billion.