Forger Forbes!

AIC Limited announced today that Manulife Financial has signed an agreement to acquire AIC’s Canadian retail investment fund business.

The business is being sold by privately held Portland Holdings Inc., which is owned by prominent Jamaican Canadian billionaire Michael Lee-Chin.

Under the agreement, Manulife Mutual Funds would manage all AIC funds in Canada and AIC would continue to act as a fund sub-advisor for Manulife Mutual Funds.

“This sale reflects our overall strategy to return to our roots of managing money and concentrate on our investment advisory services, said Michael Lee-Chin, Executive Chairman of AIC Limited. We are committed to ensuring our clients continue to receive high-quality service and are very pleased that Manulife Financial is the purchaser of our retail fund business, since they share our passion for providing advisors and clients with a broad array of products and services.”

Upon completion of the transaction with Manulife, AIC Investment Services Inc. is expected to commence operations under a new name to aptly reflect the values and principals of founder Michael Lee-Chin, Executive Chairman. The new company will be a Portland Holdings company.

“Our intent is to build on our core competencies and service the investment advisory market across Canada,” said Michael Lee-Chin, Executive Chairman, AIC Limited. “While a number of our staff members are expected to join the Manulife organization, we intend to remain an active employer within the Burlington community as we have been for years.”

As the market meltdown whipped AIC, the billionaire fund manager began quietly shopping the company around more than a year ago finally finding a buyer in Manulife.

“It is a bittersweet day,” said Mr. Lee-Chin, who bought the AIC Advantage Fund in 1987 with less than C$1-million in assets. “It's been my baby for nearly 23 years. It's my passion and my legacy.”

While Mr. Lee-Chin and the Manulife Financial did not release a price, sources estimate he will receive less than C$150-million. Mr. Lee Chin is taking full payment in Manulife stock, reflexing his faith in the financial services sector.

Born in Port Antonio, Jamaica in 1951, Michael immigrated to Canada in 1970 to study civil engineering at McMaster University in Hamilton, Ontario. After beginning post-graduate studies, Michael decided to explore career opportunities within the mutual fund industry. At the age of 26, Michael became a financial advisor and, with growing success, progressed to the position of branch manager.

In 1983, at the age of 32, Michael borrowed money to purchase C$500,000 of Mackenzie Financial stock. After four years, this stock appreciated seven-fold, and Michael used the profits to make his first acquisition, a small Ontario-based investment firm called AIC Limited. At that time, Advantage Investment Counsel (a division of AIC Limited) had assets under management of just C$800,000. Within 20 years, assets under management for this 1987 acquisition had surpassed C$4 billion. AIC Limited was to become the first in a series of acquisitions for Portland Holdings Inc., which has made Mr. Lee-Chin a billionaire, and he has all the toys, including the same type of C$60-million Global Express corporate jet used by Bill Gates.

Portland Holdings Inc. is a privately held investment company which owns a collection of diversified businesses operating in sectors that include media, tourism, health care, telecommunications and financial services. Portland Holdings Inc., holdings include, Advantage General Insurance Company Limited, AIC Financial Group Limited (Trinidad), AIC International Investments Limited, AIC Limited, CVM Communications Group, Medical Associates Limited, National Commercial Bank Jamaica Limited (NCB), Reggae Beach, Senvia Money Services Inc., Trident Villas & Hotel Jamaica.