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 www.iaclarington.com

SOURCE IA Clarington Investments Inc.

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