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iA Clarington has reduced its fees on several funds and launched an ETF series.

The firm will lower fees on 33 funds, it said in a release. As of October 22, funds with a reduced management expense ratio (MER) will include:

Asset classFund Series F reduced MER (estimated)
Canadian fixed incomeiA Clarington Bond Fund0.52%
Canadian equityiA Clarington Canadian Leaders Class0.76%
U.S. equityiA Clarington U.S. Dividend Growth Fund0.79%
Global equityiA Clarington Global Value Fund0.83%

MERs for the iA Clarington Managed Portfolios will also fall, starting at 0.94% for the iA Clarington Conservative Portfolio (Series F).

The firm is also launching an Active ETF Series for three of its fixed income funds. This series will use the same strategies, exposures and portfolio managers as the corresponding mutual fund series. The ETF fee structure will be the same as the Series F mutual funds. The series will be available for the following funds:

  • iA Clarington Core Plus Bond Fund (management fee for the ETF series is 0.50%)
  • iA Clarington Global Bond Fund (management fee for the ETF series is 0.70%)
  • iA Clarington Emerging Markets Bond Fund (management fee for the ETF series is 0.80%)

Single fee-based purchase option

The fee-based purchase option of the iA Clarington Elite Series, known as Series EF, will close to new investors as of October 22, the release said. Series F will be the only fee-based purchase option for new investors. Auto-switches into a separate high-net-worth series won’t be necessary with this change. Where applicable, investors will pay the lower of the two Series’ fees.

iA Clarington intends to merge Series EF into Series F in March 2019, subject to necessary approvals, for funds with a Series F fee reduction.

Fund mergers

The firm is also proposing the following funds be merged as of Mar. 22, 2019, subject to regulatory and other approvals. The terminating funds will be closed to new investors as of October 22. Nine of the 10 proposed mergers will require a shareholder vote.

Terminating fundContinuing 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 iA Clarington Tactical Income GIF will be merged into the iA Clarington Strategic Income GIF, and IA Clarington Tactical Bond GIF will be renamed IA Clarington Core Plus Bond GIF, subject to regulatory approval of the proposed mergers.