IA Clarington proposes new Strategic U.S. Growth & Income mandate and other line-up changes

TORONTO, Aug. 1, 2013 /CNW/ - IA Clarington Investments Inc. ("IA Clarington" or "the Company") is announcing proposed line-up changes including a Strategic U.S. Growth & Income mandate to be run by IA Clarington's award-winning portfolio advisor Dan Bastasic.

A special meeting of investors (the "Special Meeting") will be held on or about September 25, 2013 to consider the proposals which involve changes to the investment objective and strategies of Distinction Monthly Income Portfolio, Distinction Monthly Income Class and the merger of IA Clarington Energy Class into IA Clarington Canadian Leaders Class.

"The U.S. is re-emerging as a key market for investors," said IA Clarington President David Scandiffio. "Dan Bastasic is extremely well positioned to find the best opportunities in the U.S., whether its equities or bonds."

Bastasic employs a full capital structure analysis in his security selection process, and includes significant U.S. holdings in his Strategic family of IA Clarington funds.

"The U.S. market can offer Canadian investors a necessary source of diversification for their investment portfolios," said Bastasic, Senior Vice-President, Investments at IA Clarington. "The years of recovery since the last recession have likely sowed the seeds for the next secular bull market as a deleveraging consumer, a recovering housing market and new found supplies of energy are laying the ground work for a multi-year investment opportunity and a very good compliment to Canadian equity exposure."

Additional changes
Beyond the proposal to change the objective of Distinction Monthly Income Portfolio to the Strategic U.S. Growth & Income Fund mandate, IA Clarington is proposing to change the objective and strategies of Distinction Monthly Income Class to invest in IA Clarington Strategic Equity Income Fund as an underlying fund. Investors will benefit from the income-oriented holdings, which will provide a similar source of monthly income that they currently receive.

Lastly, the company is proposing the merge the IA Clarington Energy Class into IA Clarington Canadian Leaders Class. Investors will continue to get Energy exposure through the Canadian Leaders mandate albeit with broader market exposure in a fund with a lower risk profile.

IA Clarington referred the proposal to the Funds' Independent Review Committee, which acts in an advisory capacity representing the interests of the Funds. The Independent Review Committee has reviewed the proposals and determined that, if implemented, they would achieve a fair and reasonable result for the Funds.

Special Meeting of Investors
The Special Meeting will be held on or about September 25, 2013 to consider the proposed changes. In late August, investors who will be impacted by the proposal and who hold the Funds as of the date of record at the close of business on August 14, 2013 will receive an information circular with 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.

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 best in class money managers from across Canada and around the world to manage its funds. IA Clarington managed approximately $13.6 billion in assets as at July 31, 2013. www.iaclarington.com

SOURCE: IA Clarington Investments Inc.

Crystal Quast
Senior Director, Media Relations
TMX Equicom
[phone] ext. 266
[email protected]