TORONTO, ON, June 29, 2005 - ClaringtonFunds Inc. ("Clarington")
today announced that it intends to terminate its 4 RSP Funds
effective August 19, 2005.
Royal Assent has been given to legislation which eliminates
foreign content restrictions in registered plans. As a result, RSP
Funds are no longer required to purchase forward contracts from
financial institutions. The cost of these forward contracts caused
the RSP Funds to have lower performance than their corresponding
underlying funds. Clarington will terminate the forward contracts
immediately so that the RSP Funds will only hold units of the
relevant underlying funds. The termination of the forward contracts
will remove a layer of costs of the RSP Funds. The investors in
these funds will benefit from the cost savings.
The RSP Funds will terminate on August 19, 2005. Investors will
receive units of the same series of the corresponding underlying
funds having an equal value to their current investment. In
preparation for the termination of the RSP Funds, sales of the
funds will be suspended effective August 15, 2005, except for
Clarington's systematic plans.
"The changes to the foreign content rules open up new options
for Canadian investors. Clarington is moving quickly to terminate
the forward contracts and the RSP Funds to ensure that investors in
these funds do not bear unnecessary costs. We encourage investors
to talk to their financial advisors to evaluate the impact of these
changes on their investment portfolio for their registered plans,"
said Sal Tino, Executive Vice- President of Clarington.
About ClaringtonFunds Inc.
Clarington, a wholly owned subsidiary of Clarington Corporation,
is an independent Canadian mutual fund company with $4.1 billion in
assets under management. The company offers a wide variety of
mutual funds managed by leading Canadian and international
portfolio managers. Based in Toronto, ClaringtonFunds maintains
regional offices in major Canadian centres.