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 class | Fund | Series F reduced MER (estimated) |
Canadian fixed income | iA Clarington Bond Fund | 0.52% |
Canadian equity | iA Clarington Canadian Leaders Class | 0.76% |
U.S. equity | iA Clarington U.S. Dividend Growth Fund | 0.79% |
Global equity | iA Clarington Global Value Fund | 0.83% |
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 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 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.