Mutual fund industry sources speculate that Michael Lee-Chin's AIC Ltd. could be available for sale or a potential merger.

By: Errol I. Mars

The Globe and Mail reports that three independent Canadian mutual fund firms are potential targets for consolidation. AGF Management Ltd., Michael Lee-Chin's AIC Ltd. and CI Fund are at the center of industry speculation.

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Lacklustre growth and increased competition have left some firms struggling to end unit holders cashing out and are contemplating potential deals, a number of industry sources said.

The article goes on to say that Mr.Lee-Chin, AIC's chairman and chief executive officer, has been distracted by AIC's sister company Berkshire Group of Companies other interests, including Jamaican banking. AIC has lost a handful of key managers, it's assets under management has declined from more than $14-billion to about $12-billion and fund performance has suffered.

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