TORONTO, June 20, 2013 /CNW/ - IA Clarington Investments Inc. ("IA
Clarington" or "the Company"), the manager of IA Clarington Funds and
IA Clarington Target Click Funds (collectively, the "Funds"), is
announcing that investors of the Funds, other than the Distinction Bold
Class, have approved a proposal to change the method of charging
operating expenses to the Funds to a fixed rate administration fee
model. A quorum was not achieved for the meeting of the Distinction
Bold Class, and the meeting of the Distinction Bold Class was therefore
adjourned to June 26, 2013 at 11 a.m. at the offices of IA Clarington,
at which meeting a quorum will be any securityholder present, in person
or by proxy.
"The plan which was approved by investors will provide increased fee
predictability and clarity, as certain components of the MER for the
Funds will become fixed rather than varying from year to year," said IA
Clarington President David Scandiffio.
Scandiffio added that the fixed rate administration fee for each series
of a Fund will be lower than the actual operating expenses paid by each
series of the Fund during its most recently completed financial year.
The full impact of the fee reductions may not be fully realized until
the new fixed rate administration fee model is in place for a full
reporting cycle. In addition, some fees may vary further due to the
impact of federal and provincial sales tax harmonization by additional
Fixed Rate Administration Fee Model
Effective June 20, 2013, IA Clarington will pay the operating expenses
of each Fund other than the fund costs (currently payable by each Fund)
in exchange for the payment by the Fund of an annual fixed rate
administration fee which, up to December 31, 2015, will be subject to a
transitional adjustment payment in the event of a significant drop in
assets. Similar fixed rate administration fee proposals have been
approved by investors at a number of large Canadian mutual fund
Operating expenses payable by IA Clarington include, but are not be
limited to, audit fees, fund accounting costs, transfer agency and
recordkeeping costs, custodian costs, administration costs and trustee
services relating to registered tax plans, costs of printing and
disseminating prospectuses, annual information forms, fund facts and
continuous disclosure materials, legal fees, investor communication
costs, and regulatory filing fees.
Each Fund previously paid all of its own operating expenses, which
comprised a portion of the management expense ratio (the "MER") of the
Fund. The fund costs, which will continue to be payable by each Fund,
are all taxes (including HST, capital taxes, income taxes, withholding
taxes), borrowing and interest costs, fees for directors of Clarington
Sector Fund Inc. (for corporate class Funds), securityholder meetings
costs as permitted, the fees and expenses of the Independent Review
Committee of the Funds, and the cost of compliance with any new or
changed governmental and regulatory requirements imposed on or after
the June 20, 2013 implementation date.
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 reviewed the
proposal and determined that, if implemented, it would achieve a fair
and reasonable result for the Funds.
Investors are invited to visit www.iaclarington.com/fixedadmin for further details on the fixed rate administration fee model.
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 $13.5
billion in assets as at May 31, 2013. www.iaclarington.com
SOURCE: IA Clarington Investments Inc.
For further information:
Senior Director, Media Relations
(416) 815-0700 ext. 266