TORONTO, Oct. 25, 2012 /CNW/ - IA Clarington Investments Inc. ("IA Clarington") has announced it will change the name of IA Clarington American Fund to IA Clarington U.S. Dividend Growth Fund (the "Fund") and intends for the Fund to be managed directly by its current portfolio advisor Industrial Alliance Investment Management Inc., replacing the current sub-advisor.
IA Clarington plans to amend the investment strategy of the Fund to invest primarily in U.S. equity securities that IAIM believes will provide long-term capital appreciation and total return with a focus on dividend growth. In addition, commencing in 2013, the Fund will employ a covered call strategy, generally targeting one-third of the portfolio, in order to provide additional yield for the Fund. The changes to the sub-advisor and investment strategies are expected to become effective on November 26, 2012.
"These changes reflect the strength of the in-house capability of IAIM, and our commitment to provide investors with product solutions that will benefit them and help meet their future income needs," said Eric Frape, Senior Vice-President, Products and Investments, of IA Clarington.
The Management Fee on Series A units of the Fund will be reduced from 2.00% to 1.95%.
IA Clarington also announced its intention to suspend sales of securities of the IA Clarington Target Click Funds under the DSC and low load options within the Target Click Funds effective at the close of business on Friday November 2, 2012. Front end sales options remain available.
The Target Click Funds will continue to be managed in the same manner, with the highest ever month-end value guaranteed to investors that hold the funds to maturity.
IA Clarington is also lowering the Management Fees on the Target Click Funds.
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 and segregated funds managed by leading portfolio advisors. IA Clarington managed more than $11 billion in assets as at September 30, 2012. www.iaclarington.com
SOURCE: IA Clarington Investments Inc.
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