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.