TORONTO, Feb. 15, 2012 /CNW/ - IA Clarington (the "company") is announcing that, as per its prospectus, the IA Clarington Aston Hill Tactical Yield Fund (TSX: TYF.UN; the "Fund") will be converted into an open-end mutual fund by way of a merger into the IA Clarington Tactical Income Fund effective April 30, 2012. Investors should consider the following items of importance related to this conversion:
- Investors will receive continuity of investment management as Aston Hill Asset Management Inc., lead by portfolio manager Ben Cheng, currently manages both the Fund and the IA Clarington Tactical Income Fund. Both funds follow similar investment strategies, although unlike the Fund, the IA Clarington Tactical Income Fund does not use leverage.
- On the conversion date, investments in the Fund will be converted into investments of equal value in Series X units of the IA Clarington Tactical Income Fund. The management fee and dealer compensation will remain the same at a total of 1.65%. The company expects that the total management expense ratio of the Series X units of the IA Clarington Tactical Income Fund will be lower than that of the Fund.
- For typical Canadian investors, the conversion of units from the Fund to the IA Clarington Tactical Income Fund will be conducted on a tax-deferred basis, so that it will not trigger a gain or loss for Canadian federal income tax purposes. For non-Canadian or business investors, different rules may apply.
- The Fund will make a final distribution of realized capital gains and income to investors on or about April 26, 2012.
- Following conversion, investors will be able to redeem their investments at the daily net asset value without brokerage costs.
- Should an investor choose, prior to the conversion they will have the right to surrender their trust units for redemption at an amount equal to the NAV per trust unit on March 29, 2012. Investors must communicate their intention to surrender their trust units at least 15 business days prior to March 29, 2012. Investors who do not exercise this redemption right can continue to sell their units through the facilities of the TSX until shortly before the conversion date, and redeem units of the IA Clarington Tactical Income Fund after the conversion date.
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. The Company's philosophy is to select outstanding money managers from across Canada and around the world to manage its funds. IA Clarington managed more than $10 billion in assets as at December 31st, 2011. www.iaclarington.com
For further information:
Account Executive Equicom, a TMX Group Company
(416) 815-0700 ext. 251