IA Clarington Proposed Fund Mergers

Toronto, Ontario March 24, 2009 - IA Clarington Investments Inc. ("IA Clarington"), today announced several proposed changes to streamline its fund family, in order to provide investors and advisors with a more efficient line-up.

"The IA Clarington mutual fund family will continue to offer an excellent choice for investors," said David Scandiffio, President of IA Clarington. "Assets are being focused on key managers both within our internal investment capabilities as well as among leading external managers, with teams including Ben Cheng of Catapult Financial, Leigh Pullen of QV Investors and Larry Sarbit of Sarbit Advisory Services."

Subject to investor and regulatory approval, IA Clarington proposes to merge 10 of its mutual funds (the "Merging Funds") into other IA Clarington funds effective June 5, 2009. The proposed mergers are:

IA Clarington also proposes to merge Clarington Diversified Income + Growth Fund and Focused 40 Income Fund, two closed-end funds managed by it, into IA Clarington Diversified Income Fund.

Effective the close of business March 31, 2009, the Merging Funds, other than IA Clarington Tactical Income Fund and Sarbit US Equity Trust, will be closed to new purchases, except for redirected distributions and purchases under existing systematic plans. Units of IA Clarington Tactical Income Fund and Sarbit US Equity Trust will remain open for purchase until June 5, 2009.

As a result of the mergers, units of each series of the Merging Funds will be exchanged for units of the corresponding series of the applicable Continuing Fund. Existing systematic plans on all of the Merging Funds will carry over to the applicable Continuing Fund following the mergers.

Investors in the Merging Funds will, as a result of the mergers, receive units of the Continuing Fund that have the same or lower management fee than the units of the Merging Fund.

Portfolio Sub-Advisor Changes and Additions
QV Investors Inc. will be appointed as sub-advisor to IA Clarington Canadian Balanced Fund effective June 5, 2009.

"QV is a very successful portfolio manager and we are pleased to be increasing its presence in our line-up," said Mr. Scandiffio. QV also currently manages the award-winning IA Clarington Canadian Small Cap Fund.

If the merger of IA Clarington Tactical Income Fund into IA Clarington Diversified Income Fund is approved, Catapult Financial Management Inc. will be appointed as sub-advisor to IA Clarington Diversified Income Fund, which will be renamed IA Clarington Tactical Income Fund. Ben Cheng acts as lead portfolio manager for the sub-advisor. In connection with this change, IA Clarington proposes to amend the investment objectives of this fund so that they are identical to those of IA Clarington Tactical Income Fund. The change to the fund's investment objective will require approval by its investors.

If the merger of Sarbit US Equity Trust into IA Clarington Navellier U.S. All Cap Fund is approved, Sarbit Advisory Services Inc. will be appointed as sub-advisor to IA Clarington Navellier U.S. All Cap Fund, which will be renamed IA Clarington Sarbit U.S. Equity Fund. Larry Sarbit acts as lead portfolio manager for the sub-advisor.  In connection with this change, IA Clarington proposes to change the investment objectives of this fund so that they are identical to those of Sarbit US Equity Trust. The change to the fund's investment objective will require approval by its investors.

"Ben Cheng and Larry Sarbit are highly successful managers with extensive experience in their respective mandates," said Mr. Scandiffio. "We are thrilled to provide IA Clarington investors greater access to leading money managers and a diverse range of products to meet their needs".

In addition, IA Clarington ceased to act as sub-advisor to IA Clarington Canadian Growth Fund, effective March 20, 2009. This fund will continue to be managed by IA Clarington's affiliate, Industrial Alliance Investment Management Inc.

Investor and Regulatory Approval
The mergers are subject to investor and regulatory approval. Investors in the Merging Funds and of IA Clarington Navellier U.S. All Cap Fund, IA Clarington Monthly Income Balanced Fund and IA Clarington Diversified Income Fund (together with the Merging Funds, the "Funds"), for which the mergers will be a material change, will be asked to approve the mergers at a meeting scheduled for May 29, 2009.

A proxy voting package and information circular detailing these mergers, which includes tax consequences to investors in the Merging Funds, will be sent to unitholders in early May.

The Independent Review Committee of the Funds has reviewed the proposed mergers and determined that they achieve a fair and reasonable result for the Funds.

About IA Clarington Investments Inc.
IA Clarington Investments Inc., a subsidiary of Industrial Alliance Insurance and Financial Services Inc., markets a wide range of investment products, including mutual funds, segregated funds, principal protected notes and closed-end funds managed by leading Portfolio Advisors. IA Clarington managed just over $5.3 billion in assets as at February 28, 2009.

The IA Clarington Canadian Small-Cap Fund  was the co-winner, Small/Mid Cap Fund of the Year Award, at the Canadian Investment Awards in 2005, 2006 and 2007.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Units of Sarbit US Equity Trust are not qualified for sale in the Province of Quebec, and this document is not intended to solicit purchases of securities by Quebec investors. IA Clarington is a trademark of IA Clarington Investments Inc. and the IA Clarington logo is a trademark of Industrial Alliance Insurance and Financial Services Inc.