Implications of the 2016 Federal Budget on the Classes of Clarington Sector Fund Inc.

TORONTO, April 5, 2016 /CNW/ - The 2016 Federal Budget contains a proposal to amend the Income Tax Act (Canada) to eliminate the deferral of capital gains tax for investors switching between different classes of shares within a mutual fund corporation. The proposal will apply to all mutual fund corporations across the mutual fund industry in Canada, including Clarington Sector Fund Inc.  The budget proposal will treat an exchange of shares between corporate class funds as a disposition at fair market value that will trigger capital gains or losses.  The change will not apply to switches between different series of the same corporate class fund.  The budget proposal is currently expected to come into effect on or about October 1, 2016.

The iA Clarington funds impacted by the budget proposal are:

IA Clarington Short-Term Income Class

IA Clarington North American Opportunities Class

IA Clarington Tactical Bond Class

IA Clarington Strategic Equity Income Class

IA Clarington Strategic Income Class

IA Clarington Global Tactical Income Class

IA Clarington Tactical Income Class

IA Clarington Global Opportunities Class

IA Clarington Canadian Balanced Class

IA Clarington Inhance Global Equity SRI Class

IA Clarington Focused Balanced Class

IA Clarington Focused U.S. Equity Class

IA Clarington Canadian Conservative Equity Class

IA Clarington Sarbit Activist Opportunities Class

IA Clarington Canadian Growth Class

IA Clarington Sarbit U.S. Equity Class (Unhedged)

IA Clarington Canadian Leaders Class

Distinction Prudent Class

IA Clarington Canadian Small Cap Class

Distinction Conservative Class

IA Clarington Dividend Growth Class

Distinction Balanced Class

IA Clarington Focused Canadian Equity Class

Distinction Growth Class

IA Clarington Inhance Canadian Equity SRI Class

Distinction Bold Class

IA Clarington Investments Inc. has no current plans to make changes to its corporate class fund structure in response to the recent Federal Budget measure. However, we will continue to closely monitor this development.  

Investors should contact their financial advisor to learn how the budget proposal may impact their investment plans and their investment options regarding funds that are classes of a mutual fund corporation.

About iA Clarington

IA Clarington Investments Inc., a subsidiary of Industrial Alliance Insurance and Financial Services Inc., markets a wide range of distinctive and outcome-based investments, including actively managed mutual funds, portfolio solutions, socially responsible investments and target date funds. As of February 29, 2016, iA Clarington has more than $13 billion in assets under management and distributes its investment solutions to retail investors through advice-based distribution channels. For more information please visit

SOURCE IA Clarington Investments Inc.

For further information: For media enquiries please contact: Scott Anderson, Manager, Media Relations, NATIONAL Equicom, Tel: 416-586-1954,


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