TORONTO, Feb. 13 /CNW/ - IA Clarington Investments Inc. ("IA Clarington"
or the "Company") today announced that it is broadening its range of cash
distribution options with its launch of Series T10 and F10 units of the IA
Clarington Dividend Growth Fund. The company also announced changes to the
distribution policies of two existing cash distribution funds and a cap on the
Series A and F units of IA Clarington Canadian Dividend Fund.
Beginning March 17, 2008, the Company will offer Series T10 and Series
F10 units of the IA Clarington Dividend Growth Fund. This fund has a similar
investment objective to the IA Clarington Canadian Dividend Fund, and both
funds are managed by Gil Lamothe of Industrial Alliance Investment Management
Inc. The Series T10 and F10 units will aim to provide monthly distributions,
targeted at a rate of 10%.
"We believe these new series are an attractive option for clients who are
seeking to draw a higher rate of cash flow from their investments, even if
that means potentially drawing down capital over time," said Eric Frape,
Senior Vice President, Product and Business Development at IA Clarington. "For
an aging Canadian population, especially those entering retirement,
investments that can provide tax efficient cash flow are very important. We
are committed to providing funds with a wide range of distribution options,
including T6, T8 and now T10, to meet the diverse needs of Canadian
IA Clarington also announced changes to the distribution policies of the
IA Clarington Canadian Dividend Fund and IA Clarington Global Income Fund.
Effective April 30, 2008, the Series A and F units of the IA Clarington
Canadian Dividend Fund will be closed to new purchasers, other than investors
who purchase under pre-existing systematic plans. In addition, the
distribution policy for these two series will be amended to provide greater
In addition, effective April 30, 2008, the monthly distribution on the
Series A and Series F units of IA Clarington Global Income Fund will be
reduced to $0.025 from $0.06. The distribution policy of those series of units
of the Fund will be adjusted, starting in January, 2009, to target an
annualized distribution rate of 8%.
"These changes provide our clients with clarity and greater certainty on
the future distribution levels for these funds," Frape added. "Our focus is to
continue to offer a broad selection of cash distribution options which meet
the various needs of investors."
About IA Clarington
IA Clarington Investments Inc., a subsidiary of Industrial Alliance
Insurance and Financial Services Inc., markets a wide range of investment
products, including mutual funds, segregated funds, principal protected notes
and closed end funds managed by leading portfolio managers. IA Clarington and
its subsidiaries managed approximately $7.7 billion in assets as at
December 31, 2007. The company's website address is www.iaclarington.com.
Commissions, trailing commissions, management fees and expenses all may
be associated with mutual fund investments. Please read the prospectus before
investing. Mutual funds are not guaranteed, their values change frequently and
past performance may not be repeated.
The payment of distributions is not guaranteed and may fluctuate. The
payment of distributions should not be confused with a fund's performance,
rate of return, or yield. If distributions paid by the fund are greater than
the performance of the fund, then an investor's original investment will
shrink. Distributions paid as a result of capital gains realized by a fund and
income and dividends earned by a fund are taxable in the investor's hands in
the year they are paid. The investor's adjusted cost base will be reduced by
the amount of any returns of capital. If the investor's adjusted cost base
goes below zero, then the investor will generally have to pay capital gains
tax on the amount below zero.
For further information: Eric Frape, Senior Vice President, Product and
Business Development, IA Clarington Investments Inc., (416) 585-8815,