Two AIC Funds With a Financial Focus

Article Excerpt

These two AIC funds hold much of their portfolios in financial services stocks. This sector has moved down lately, mostly on concerns over a general lack of liquidity for asset-backed securities. We prefer diversified funds. But if you must focus on something, then the finance sector still offers sound long-term prospects. If you do invest in these funds, be sure to adjust the rest of your portfolio so they won’t overly concentrate your stock and mutual fund holdings in the financial sector. AIC AMERICAN ADVANTAGE FUND $6.20 (CWA Rating: Aggressive) (AIC Group of Funds, 1375 Kerns Road, Burlington, Ont., L7R 4X8, 1-800-263-2144; Web site: www.aicfunds.com. Buy or sell through brokers) invests mostly in U.S. stocks, with over 99% of assets in the financial services area. The fund’s holdings in this segment break down as follows: Life & health insurance, 19.5%; Diversified banks, 13.0%; Multi-line insurance, 12.8%; Property & casualty insurance companies, 12.6%; Investment banking & brokerage, 10.7%; Wealth management, 7.0%; Diversified financials, 6.5%;…

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