MENU

iA Clarington announces changes to fund lineup

By The IJ Staff | October 12 2018 09:30AM

Photo: Freepik

IA Clarington Investments Inc. announced changes on Oct. 10 to its fund lineup, including fee reductions and ten fund mergers.

"With these enhancements, our goal is to increase return potential for investors and add greater flexibility and simplicity to the way they and their advisors access our lineup of high-conviction, actively managed solutions," said Eric Frape, Senior Vice-President, Product & Investments, iA Clarington.

Effective Oct. 22, iA Clarington will lower fees on 33 funds. "The vast majority of price-reduced series have lower fees than their peer group averages, and more than 50% have fees in the top quartile. This translates into very attractive entry points for investors seeking actively managed solutions for major asset class exposures," says Frape.

Fund mergers

iA Clarington has also proposed the following fund mergers, subject to regulatory and other approvals:

Terminating Fund

Continuing Fund

IA Clarington

Canadian Growth Class

 

IA Clarington

Canadian Leaders Class

IA Clarington

Sarbit Activist Opportunities Class  

IA Clarington

Sarbit U.S. Equity Class (Unhedged)

 

IA Clarington

Short-Term Bond Fund

 

IA Clarington

Core Plus Bond Fund

 

IA Clarington

Short-Term Income Class

 

IA Clarington

Money Market Fund

 

IA Clarington

Strategic Corporate Bond Class

 

IA Clarington

Strategic Corporate Bond Fund

 

IA Clarington

Strategic Income Class

IA Clarington

Strategic Income Fund

 

IA Clarington

Tactical Bond Class

 

IA Clarington

Core Plus Bond Fund

 

IA Clarington

Tactical Bond Fund

 

IA Clarington

Core Plus Bond Fund

IA Clarington

Tactical Income Class

IA Clarington

Strategic Income Fund

 

IA Clarington

Tactical Income Fund

 

IA Clarington

Strategic Income Fund

 

The company is proposing an effective date of March 22, 2019 for these mergers. Effective Oct. 22, 2018, the proposed terminating funds will be closed to new investors. Of the 10 proposed mergers, nine will require a unitholder/shareholder vote.

Active ETF Series

iA Clarington also announced that it will launch Active ETF Series for three of its fixed-income funds. "Market volatility and the low, but rising, interest rate environment have made the fixed-income market more complex, increasing demand for actively managed strategies. Our new Active ETF Series provide convenient access to three unique mandates for advisors and self-directed investors who prefer using an exchange-traded vehicle," said Frape.

The Toronto Stock Exchange has conditionally approved the listing of these ETF Series securities: IA Clarington Core Plus Bond Fund (TSX: ICPB); IA Clarington Global Bond Fund (TSX: IGLB); IA Clarington Emerging Markets Bond Fund (TSX: IEMB); and IA Clarington Emerging Markets Bond Fund (TSX: IEMB).

Series EF to close to new investors

Effective Oct. 22, Series EF – iA Clarington's Elite Series fee-based purchase option – will be closed to new investors; for these investors, Series F will serve as the firm's single fee-based purchase option. With this change, auto-switches into a separate, high-net-worth series will no longer be necessary.

For funds that will have a Series F fee reduction, the new fee will be the same or lower than the current Series EF fee. Current investors in Series EF can continue to make purchases and any systematic programs will continue. In addition, for funds that will have a Series F fee reduction, iA Clarington intends to merge Series EF into Series F in March 2019, subject to necessary approvals.

Publicité