TORONTO, Feb. 14, 2020 /CNW/ - IA Clarington Investments Inc. ("iA Clarington"), the first to launch guaranteed target date mutual funds in Canada, today announced an early maturity date of May 8, 2020 for IA Clarington Target Click 2020 Fund (the "Fund").
IA Clarington Target Click Funds are global balanced funds that guarantee a unit value at maturity that is equal to the highest month-end unit value. As each Target Click Fund approaches its maturity date, the allocation to fixed income is increased and the allocation to equities is reduced.
As the Fund is nearing its original maturity date of June 30, 2020, it is predominantly invested in low-risk fixed-income securities. "We're very pleased that the Fund has achieved its capital appreciation and risk-mitigation objectives," said Adam Elliott, Senior Vice-President & National Sales Manager, iA Clarington. "We believe the most appropriate course, under these circumstances, is to accelerate the Fund's maturity date."
The current guaranteed amount is $14.89 per unit for Series A and $17.05 per unit for Series F. Investors still in the Fund at market close on May 8, 2020 will be switched into IA Clarington Money Market Fund Series A or Series F, depending on the series of the Fund they hold. These investors will receive the net asset value (NAV) per unit as at May 8, 2020 or the net present value of the guaranteed amount per unit, whichever is higher. Investors who redeem their units in the Fund on May 8, 2020 will receive the NAV per unit that day or the net present value of the guaranteed amount per unit, whichever is higher. Investors who redeem before May 8, 2020 will receive the NAV per unit on the day of redemption.
If necessary, iA Clarington will waive its management fees on the Fund and absorb Fund expenses to ensure that the NAV per unit equals the full guaranteed amount on the accelerated maturity date.
If you have any questions, please contact your financial advisor.
About IA Clarington Investments Inc. A subsidiary of Industrial Alliance Insurance and Financial Services Inc. – Canada's fourth-largest life and health insurance company – iA Clarington offers a wide range of investment products, including actively managed mutual funds, managed portfolio solutions, Active ETF Series and socially responsible investments. As of January 31, 2020, iA Clarington has over $15 billion in assets under management. For more information, please visit iaclarington.com
SOURCE IA Clarington Investments Inc.
For further information: Rob Martin, VP, Product Management & Marketing, iA Clarington Investments, [email protected], T: 416-860-9880 ext. 8070