Toronto-based IA Clarington Investments Inc. intends to appoint three portfolio managers to replace the current sub-advisor on the IA Clarington Tactical Income Fund, IA Clarington Tactical Bond Fund and IA Clarington Global Tactical Income Fund, the company said Friday.
The proposals follow the non-renewal of the sub-advisory agreement between Aston Hill Asset Management Inc. and IA Clarington, which had a five-year term.
Under the agreement, Ben Cheng, president and co-chief investment officer of Aston Hill Financial Inc. (TSX:AHF), provided portfolio management services to the three funds.
Going forward, Aston Hill says it plans to provide new investment products managed by Cheng to Canadian retail investors.
Dan Bastasic, senior vice president, investments, IA Clarington, will assume portfolio management responsibilities for IA Clarington Tactical Income Fund. Bastasic joined IA Clarington in 2011 and manages IA Clarington’s Strategic family of funds. He has more than 15 years of experience managing income focused portfolios across both equities and fixed income.
Jeff Sujitno, vice president, investments, IA Clarington, will assume portfolio management responsibilities for IA Clarington Tactical Bond Fund. Sujitno joined IA Clarington in 2013 and manages IA Clarington’s Core Plus Bond Fund and Floating Rate Income Fund, which has been a top fund in its category since its inception.
Portfolio management responsibilities for IA Clarington Global Tactical Income Fund is intended to be assumed by Boston-based Loomis, Sayles & Company, L.P., a new sub-advisor relationship for IA Clarington.
“We developed our family of tactical income funds to provide investors with a unique and flexible approach to generate an attractive and stable level of income in various market environments,” says David Scandiffio, president, IA Clarington Investments. “After careful review, we believe our investors will benefit from the added depth, strong track records and expertise that these new investment teams bring to the funds.”
“The addition of Loomis Sayles will bring a highly regarded performance-driven firm to the IA Clarington stable of active portfolio managers,” says Scandiffio.
Founded in 1926, Loomis Sayles has more than US$230 billion in global assets under management (AUM).
The proposed changes are subject to receipt of required approvals, including the approval of IA Clarington’s independent review committee.
In conjunction with the change in portfolio managers, IA Clarington says it intends to update the investment strategies of three funds.
Changes at Aston Hill
With the non-renewal of the sub-advisory agreement, Aston Hill says it looks forward to providing advisors and investors with new investment products and the opportunity to take advantage of Ben Cheng’s portfolio management expertise.
The company says it also intends to convert Aston Hill VIP Income Fund (TSX:VIP.UN), currently a closed-end fund, to an open-end daily redeemable mutual fund. Following the conversion, the fund will change its name to Aston Hill North American Dividend Fund.
Unitholders will receive an information circular that will provide more detail on the proposed conversion.
Aston Hill says it will be hosting its first roadshow to discuss these and other changes.
Cheng will be providing an update on Aston Hill for advisors beginning Feb. 17. Aston Hill’s portfolio managers will also be present to discuss their mutual funds. Click here for details.
Over the past eight years, Aston Hill’s AUM have grown from $12 million to over $4 billion (excluding the assets sub-advised for IA Clarington).