Toronto-based IA Clarington Investments Inc. Friday announced a proposal to merge eight mutual fund trusts 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, in a release.
A special meeting of investors will be held on or about Jan. 10, 2014 to consider the proposal, which does not involve changing any investment objectives or strategies of the funds.
IA Clarington says it intends to lower the management fees and MERs of the continuing funds to reflect the enhanced cost efficiency within its line-up.
The proposed changes are subject to the applicable funds obtaining all necessary approvals, including investor approval for the continuing funds.
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Terminating Fund |
Continuing Corporate Class Fund |
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Distinction Prudent Portfolio |
Distinction Prudent Class |
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Distinction Conservative Portfolio |
Distinction Conservative Class |
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Distinction Balanced Portfolio |
Distinction Balanced Class |
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Distinction Growth Portfolio |
Distinction Growth Class |
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Distinction Bold Portfolio |
Distinction Bold Class |
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IA Clarington Canadian Leaders Fund |
IA Clarington Canadian Leaders Class |
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IA Clarington Canadian Growth Fund |
IA Clarington Canadian Growth Class |
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IA Clarington Dividend Growth Fund |
IA Clarington Dividend Growth Class |
IA Clarington Investments Inc., which has $13.8 billion in assets under management, is a subsidiary of Industrial Alliance Insurance and Financial Services Inc. (TSX:IAG).