July 7, 2009 - Toronto - IA Clarington
Investments Inc. (IA Clarington) today announced an early maturity
date for IA Clarington Target Click 2010 Fund (the Fund) of
September 18, 2009 (the Accelerated Maturity Date). IA Clarington
was the first to launch guaranteed target date mutual funds in
Canada and is now prepared to pay out on the Fund's guarantee to
investors in advance of the Fund's original maturity date of June
30, 2010.
"Over the past year," says David Scandiffio, President, IA
Clarington Investments Inc., "investors have benefited from the
conservative nature of the Fund. In 2008, while global markets
suffered an extreme downturn, IA Clarington Target Click 2010 Fund
returned 1.9%, leading the Target Date 2010 category that year.
Now, given the Fund's allocation and the overall economic
environment, we believe accelerating the maturity date is the right
thing to do. We're pleased that we were the first to bring
guaranteed Target Date funds to market in Canada, and on September
18th we will celebrate another milestone by being the
first company to have one of these products successfully mature and
reach its objective."
IA Clarington Target Click Funds are global balanced funds that
guarantee the highest month-end value achieved over their life at
maturity. As each Target Click Fund approaches its respective
maturity date, its allocation to fixed income is increased and its
allocation to equities is reduced.
As the IA Clarington Target Click 2010 Fund is nearing its
original maturity date, it is predominantly invested in fixed
income securities. Given that the current low interest rate
environment offers limited return prospects for the Fund's fixed
income component, IA Clarington believes investors in the Fund are
best served by wrapping up the Fund early at its full guaranteed
amount.
On September 18, 2009, Fund investors will be entitled to
receive the higher of the NAV per unit that day and the present
value of the guaranteed amount per unit. The current NAV per unit
of the Fund is equal to the full guaranteed amount, and IA
Clarington will waive its management fees on the Fund and absorb
Fund expenses in order to help ensure that the NAV per unit equals
the full guaranteed amount on the Accelerated Maturity Date.
Effective July 10, 2009, the Fund will be closed to new sales
except for those being made through pre-existing systematic
investment plans. Investors in the Fund will not incur redemption
charges for redeeming or transferring their investment on or prior
to the Accelerated Maturity Date.
The other funds in the IA Clarington Target Click family of
funds continue to their respective maturity dates, 2015, 2020, 2025
and 2030. These funds provide investors with the security of
knowing their investments are protected, provided they hold the
funds to maturity, while at the same time offering exposure to
leading international equity markets.
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 and segregated
funds managed by leading portfolio advisors. IA Clarington managed
over $6 billion in assets as at May 31, 2009.