Toronto, Ontario, February 15, 2012 - IA
Clarington (the "company") is announcing that, as per its
prospectus, the IA Clarington Aston Hill Tactical Yield Fund (TSX:
TYF.UN; the "Fund") will be converted into an open-end mutual fund
by way of a merger into the IA Clarington Tactical Income Fund
effective April 30, 2012. Investors should consider the following
items of importance related to this conversion:
- Investors will receive continuity of investment management as
Aston Hill Asset Management Inc., lead by portfolio manager Ben
Cheng, currently manages both the Fund and the IA Clarington
Tactical Income Fund. Both funds follow similar investment
strategies, although unlike the Fund, the IA Clarington Tactical
Income Fund does not use leverage.
- On the conversion date, investments in the Fund will be
converted into investments of equal value in Series X units of the
IA Clarington Tactical Income Fund. The management fee and dealer
compensation will remain the same at a total of 1.65%. The company
expects that the total management expense ratio of the Series X
units of the IA Clarington Tactical Income Fund will be lower than
that of the Fund.
- For typical Canadian investors, the conversion of units from
the Fund to the IA Clarington Tactical Income Fund will be
conducted on a tax-deferred basis, so that it will not trigger a
gain or loss for Canadian federal income tax purposes. For
non-Canadian or business investors, different rules may apply.
- The Fund will make a final distribution of realized capital
gains and income to investors on or about April 26, 2012.
- Following conversion, investors will be able to redeem their
investments at the daily net asset value without brokerage
costs.
- Should an investor choose, prior to the conversion they will
have the right to surrender their trust units for redemption at an
amount equal to the NAV per trust unit on March 29, 2012. Investors
must communicate their intention to surrender their trust units at
least 15 business days prior to March 29, 2012. Investors who do
not exercise this redemption right can continue to sell their units
through the facilities of the TSX until shortly before the
conversion date, and redeem units of the IA Clarington Tactical
Income Fund after the conversion date.
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 outstanding money managers from across
Canada and around the world to manage its funds. IA Clarington
managed more than $10 billion in assets as at December 31st, 2011.
www.iaclarington.com
For further information
Tim Foran
Account Executive
Equicom, a TMX Group Company
(416) 815-0700 ext. 251
Tforan@equicomgroup.com