IA Clarington Enhances Fee-Based Fund Lineup

Company reduces costs on Series F securities of many of its funds and broadens Series F lineup

Toronto, Ontario, January 5, 2007- IA Clarington Investments Inc. ("IA Clarington" or the "Company") today announced it has lowered the management fees on Series F securities of many of its funds. The Company also announced it is launching Series F securities of three of its other funds, and that the 2006 management expense ratios for the Series F securities of its funds are now available. 

"Fee-based accounts represent an important and growing market segment, and we believe these changes enhance our lineup for fee-based advisors, giving them greater product selection and highly competitive fees within the IA Clarington fund family. The higher investment levels and reduced service requirements on fee-based accounts create cost efficiencies, which we are passing on to our clients," said Eric Frape, Vice President, Product Management. 

Changes have been made to Series F securities of the following funds:

FUND

2007 Series F MER

2006 Series F MER

Clarington Canadian Dividend Fund

0.95%

1.10%

Clarington Canadian Income Fund

0.85%

0.99%

Clarington Canadian Income Fund II - Series F-H

0.85%

0.99%

Clarington Canadian Income Fund II - Series F-L

0.85%

0.99%

Clarington Diversified Income Fund

0.85%

0.99%

Clarington Income Trust Fund

0.85%

0.99%

Clarington U.S.Dividend Fund

1.10%

1.25%

Clarington Global Income Fund

1.10%

1.25%

Clarington Global Dividend Fund

1.10%

1.25%

Clarington Canadian Balanced Fund

0.95%

1.10%

Clarington Canadian Growth & Income Fund

0.95%

1.10%

Clarington Canadian Equity Fund

0.85%

0.99%

Clarington Canadian Value Fund

0.95%

1.10%

Clarington Canadian Small Cap Fund

1.20%

1.35%

Clarington Navellier U.S.All Cap Fund

1.10%

1.25%

Clarington Global Equity Fund

0.90%

1.25%

Clarington Global Equity Class

1.20%

1.35%

Clarington Global Small Cap Fund

1.20%

1.35%

Clarington Core Portfolio

1.10%

1.25%

The management fee reduction is effective January 1, 2007. The MERs reflect actual MERs charged to the funds for 2006, after absorption of expenses by IA Clarington. The expense absorption for 2006 included, in some cases, a waiver of management fees to bring the total MER for 2006 in line with the expected MER following the fee reductions. 

In addition, from January 15, 2007, IA Clarington will offer Series F securities of three of its other funds to offer fee-based advisors greater product selection. 

The funds and the applicable management fees are as follows:

FUND

Series F Management Fee

IA Dividend Growth Fund

0.85%

R Canadian Smaller Companies Fund

1.20%

R Global Value Fund

1.10%

 

In addition, Series F units of Clarington U.S. Dividend Fund and Clarington Global Dividend Fund will be available in US Dollars at the same management fee rate as the Canadian dollar Series F units of those funds. 

About IA Clarington Investments

IA Clarington Investments Inc., a subsidiary of Industrial Alliance Insurance and Financial Services Inc., offers a wide variety of mutual funds managed by leading Canadian and international portfolio managers. IA Clarington managed approximately $6.5 billion in mutual fund assets as at November 30, 2006. The company's website address is www.iaclarington.com.