AIC Ltd. is launching AIC Preferred Income Fund, to company said Monday. The new fund is designed to enable investors to tap into the current opportunities available in the preferred share market.

“At AIC, we recognize that many financial advisors and investors would like to ease their way back into the markets while still protecting their current portfolios against additional risk and volatility,” says Jonathan Wellum, AIC’s CEO and chief investment officer.

“With its focus on reducing risk and volatility and also generating a predictable income stream, we believe the new AIC Preferred Income is an ideal fund to help investors begin to take steps to earning the returns they’ll need in order to achieve their long term investment and retirement goals,”

Available starting April 20, the new fund offers investors lower volatility, reduced risk, high and predictable income stream of 5% annual distribution (paid monthly), and tax efficiency through its dividend tax treatment.

Lead manager of the new fund will be veteran fixed income manager Randy LeClair, senior vp and portfolio manager. LeClair is a recent winner of a Canadian Investment Industry Award for AIC Global Bond Fund.

The fundamental investment objective of the fund is to generate steady income and achieve capital preservation and appreciation by investing primarily in preferred shares of Canadian companies, royalty and income trusts and fixed income securities. The fund may also invest in common shares of Canadian companies.

“Preferred shares are safer than common shares because they rank higher up the capital structure,” says LeClair. “Traditionally, only Canada’s largest, most credit worthy public companies can earn access to the preferred share market. AIC is very familiar with all of the issuers in this space. And, as a result, we are confident that the new AIC Preferred Income Fund will come to own the best of those issuers.”

IE