TORONTO, April 26, 2013 - IA Clarington
Investment Inc. ("IA Clarington" or "the Company"), the manager of
IA Clarington Funds and IA Clarington Target Click Funds
(collectively, the "Funds"), is announcing a proposal to change its
method of charging operating expenses to the Funds which will
result in lower MERs for all Funds and provide enhanced clarity and
predictability surrounding fees. A special meeting of investors
(the "Special Meeting") will be held on or about June 19, 2013 to
consider the proposed changes.
"Operating expenses can vary from Fund to Fund and from year to
year meaning the MER for a series of a Fund is somewhat uncertain
and unpredictable," said IA Clarington President David Scandiffio.
"Our proposal will provide investors with increased fee
predictability and clarity, as certain components of the MER for
the Funds will become fixed rather than varying from year to
year."
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.
Fixed Rate Administration Fee Proposal
IA Clarington is proposing to 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. Similar fixed rate
administration fee proposals have been approved by investors at a
number of large Canadian mutual fund companies.
If the Administration Fee Proposal is implemented, the operating
expenses payable by IA Clarington will include, but will 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, bank
charges, investor communication costs, and regulatory filing
fees.
Each Fund currently pays all of its own operating expenses,
which comprise 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, the
cost of compliance with any new or changed governmental and
regulatory requirements imposed on or after the proposed 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 has
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
proposal.
Special Meeting of Investors
The Special Meeting will be held on or about June 19, 2013 to
consider the proposed changes. In late May, 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 May 3, 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 $13.1 billion in assets as at March 31,
2013.www.iaclarington.com
For Further Information:
Crystal Quast
Senior Director, Media Relations
TMX Equicom
(416) 815-0700 ext. 266
CQuast@tmxequicom.com