Clarington Introduces Two New Equity Funds Managed by Top Sub-Advisers

TORONTO, ON, Feb. 18, 2002 -- ClaringtonFunds Inc. today announced the introduction of two new equity funds, providing further opportunities for investment style diversification and bringing the expertise of two renowned money management firms to Clarington investors.

The funds are Clarington Canadian Growth Fund, managed by KBSH Capital Management Inc. of Toronto, and Clarington U.S. Large Cap Value Class, managed by Salomon Brothers Asset Management of New York.

"Clarington's strategy is to seek out the most respected money managers in the industry, and make their expertise available to Canadians by appointing them as sub-advisers to our funds," says Terry Stone, CEO and founder of Clarington. "We scoured the investment industry and examined a lot of track records before choosing KBSH and Salomon. Their expertise complements the solid team of sub-advisers that has been carefully assembled to create the diverse Clarington fund family of Canadian and international funds."

Clarington U.S. Large Cap Value Class will model the existing Salomon Brothers Investors Value Fund, available only to U.S. investors. The fund has been a top quartile performer for 10 years. Lead manager Jack Cunningham likes to call his style "Value Light." He avoids the deep value stocks such as highly cyclical companies, and concentrates on attractive companies that are temporarily overlooked or out of favour. This fund is part of Clarington Sector Fund Inc. that allows individuals to switch among funds in the group without triggering a taxable capital gain. Salomon Brothers Asset Management has over US$70 billion of assets under administration.

"We always look for a catalyst that we expect will get the company's stock price moving again, and we avoid stocks that are cheap for a good reason, and likely to stay cheap," Cunningham says. "The ultimate value stock is one that turns into a growth stock."

Clarington Canadian Growth Fund will invest in companies with a compelling growth strategy, sustainable competitive advantage, superior management, solid financial position and attractive valuation. Sub-adviser KBSH has over $8 billion under management and takes a team approach to investment management and research.

"We identify companies that display financial strength and superior growth prospects, regardless of economic and market cycles," says David Knight, executive chairman and co-founder of KBSH.

Clarington is the sponsor of 34 mutual funds, including the popular Clarington Canadian Income Fund, Clarington Canadian Balanced Fund, Clarington Canadian Equity Fund and Clarington Global Equity Fund. Clarington has a well-diversified product line of bond, balanced and equity funds, with a mix of managers and styles.

Clarington Funds, founded in 1996, has over $2.6 billion in assets in 34 funds, with offices in Vancouver, Calgary, Toronto and Montreal.