TORONTO, ON, October 2, 2003 - ClaringtonFunds Inc. today
announced the introduction of the Clarington Income Trust Fund,
providing a new solution for investors seeking enhanced income. As
a complement to Clarington's existing income funds, the new Income
Trust Fund will invest in a diversified portfolio of income trusts
including pipelines and power, oil and gas, real estate (REITs) and
diversified business trusts.
KBSH Capital Management Inc. of Toronto, one of Canada's most
respected institutional money managers, will manage the fund.
"Low interest rates and increased demand for income have forced
investors to seek out higher yielding alternatives," says Eric
Frape, Clarington's Vice President of Product Management. "The
Clarington Income Trust Fund will complement traditional income
portfolios by providing investors with the enhanced yield and added
diversification offered by income trusts."
KBSH has 23 years of broad experience assessing and valuing
investment opportunities for their clients through both equity and
fixed-income portfolios. Of the $7 billion KBSH currently manages,
$2.5 billion is in fixed-income securities. "The income trust
sector is a dynamic and growing area within the investment
landscape. With excellent long-term potential this asset class is
here to stay" says Doug MacDonald, Vice President of Investments
for KBSH Capital Management.
The Fund is designed to provide a monthly distribution of seven
cents per unit and will be launched with a net asset value of $10
per unit. Any additional income generated in the portfolio will be
distributed annually each December. It is expected that a portion
of the distribution will be made up of capital gains, income,
dividends and/or a return of capital, which would provide greater
tax efficiency to investors.
ClaringtonFunds Inc., founded in 1995, currently has $3.1
billion in assets in 35 mutual funds, with offices in Vancouver,
Calgary, Toronto, Ottawa and Montreal. All of Clarington's mutual
funds are sub-advised by well-known Canadian and international
investment managers, including KBSH Capital Management, founded in
1980, with offices in Toronto, Vancouver, Montreal and Halifax.