IA Clarington proposes fund mergers

By Staff | October 28, 2013 | Last updated on October 28, 2013
2 min read

IA Clarington Investments is proposing to merge eight mutual funds into their corresponding corporate class versions.

“Investors in non-registered accounts will benefit from the ability to switch within the corporate class without triggering a taxable disposition, and the mergers also enable us to streamline our line-up and reduce the duplication of funds,” said IA Clarington President David Scandiffio.

A special meeting of investors will be held in January 2014 to consider the proposal, which does not involve changing any investment objectives or strategies of the funds.

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IA Clarington intends to lower the management fees and MERs of the continuing funds to reflect the enhanced cost efficiency.

Terminating Fund Continuing Corporate Class Fund
Distinction Prudent Portfolio Distinction Prudent Class
Distinction Conservative Portfolio Distinction Conservative Class
Distinction Balanced Portfolio Distinction Balanced Class
Distinction Growth Portfolio Distinction Growth Class
Distinction Bold Portfolio Distinction Bold Class
IA Clarington Canadian Leaders Fund IA Clarington Canadian Leaders Class
IA Clarington Canadian Growth Fund IA Clarington Canadian Growth Class
IA Clarington Dividend Growth Fund IA Clarington Dividend Growth Class

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Investors who will be impacted by the proposal and who hold investments in the continuing funds as of the close of business on Nov. 29 will receive the full details of the proposed changes as well as a proxy form. The proposed changes are subject to the applicable funds obtaining all necessary approvals, including investor approval for the continuing funds.

Notice of the proposed mergers will be provided to the security holders of the terminating funds at least 60 days prior to the effective date of the mergers, including further details of the proposal.

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Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.