AICFG News

WINNIPEG (GlobeinvestorGOLD) - Robert Almeida has pushed the performance of his portfolio of mostly Canadian stocks ahead of peers.

His $1.14-billion AIC Advantage Fund produced a 23.7-per-cent return for the 12 months ended July 31, 2007. That beat the 14.7-per-cent average return of Canadian-focus equity funds in the period. Mr. Almeida, Senior Vice President at AIC Investment Services Inc in Burlington, Ont., has co-managed the 21-year old fund since July, 2004.

We build the fund with core and non-core companies, Mr. Almeida said. The core companies provide a return above that of our benchmark, the S&P/TSX Total Return Index with the diversification of the benchmark embedded inside our companies. The non-core positions have to provide less volatility than the benchmark itself. Finally, we want to buy at prices that will let us generate an above-average return.

IGM Financial Inc. is a Winnipeg-based money manager with $125.9-billion under its wings. Part of the Power Corp. empire of financial services companies, it is the largest and most diversified financial manager in Canada. Shares purchased at an average cost of $4.33 have recently traded at $52.25 with a $1.84 annual dividend equal to 3.5 per cent yield. The company has a diversified product mix and distribution channels that include dedicated sales persons, independent financial planners and affiliated companies like Great-West Life Assurance Co. and London Life. Earnings per share for the year ended Dec. 31, 2008 should rise to $3.40 from $3.00 a year earlier and $2.93 for 2006. Within a year, shares should hit $60.00, Mr. Almeida said.

Invesco Inc. is the ADR of a U.K.-based money manager headquartered in London. Shares purchased at an average cost of $10.75 (U.S.) have recently traded at $13.25 with a 21 cent annual dividend equal to a yield of 1.6 per cent. Invesco controls $500-billion (U.S.) of assets around the world and is a pure global play on asset management. That gives it huge cash flow without the balance sheet risk posed by investment banking, Mr. Almeida said. It is a turnaround play, for Invesco has come out of a crisis in 2000 when it had too much debt after a spree of acquisitions. Looking ahead, earnings per share should rise to 95 cents for the year ended Dec. 31, 2008 from 80 cents a year earlier and 60 cents for 2006. Within 12 to 24 months, shares should hit $16, he added.

Infosys Technologies Ltd. is the ADR of a Bangalore, India-based computer service company. Infosys provides business services at low cost to global companies, charging on a developed world scale and paying its employees on the Indian scale. Shares purchased at an average cost of $11.82 (U.S.) have recently traded at $46.61. The company thrives when global business is expanding and gains market share when clients need to cut costs. Earnings for the year ended March 31, 2008 should rise to $1.93 from $1.67 and $1.10 for 2006. Within 12 to 24 months, shares should hit $60, Mr. Almeida said.