ClaringtonFunds Inc. today launched Clarington Target Click Funds, a new investment product that it says combines the advantages of “life cycle” funds with a guarantee.

The new funds offer a range of fixed maturity dates and are guaranteed to pay, at their maturity, the greater of the funds’ inception unit price or the highest month-end unit price achieved over the life of the fund.

Clarington says the funds are the only ones of their kind available in Canada.

Distributed by Clarington, the funds are guaranteed by ABN AMRO Bank N.V., a leading international bank with more than $1 trillion in assets. The portfolio advisor to the funds is the Canadian subsidiary of an affiliate of the bank, ABN AMRO Asset Management, one of the world’s leading asset managers. ABN AMRO Asset Management pioneered the Target Click concept in Europe in 2000.

The funds have a range of fixed maturity dates designed to meet varying investment time horizons: 2010; 2015; 2020; and 2025. As the scheduled maturity dates approach, the risk profile of the funds gradually decrease as the funds’ asset allocation will shift their exposure from equities to cash and bonds (known as “life cycle” funds).

Over the long term, the funds are intended to provide returns similar to those of a global balanced fund, while providing capital protection based on the greater of the funds’ launch price or the highest month-end price during the life of the Fund, if held to maturity.

“This unique product is designed to offer the principal protection of a guaranteed investment, the growth potential of a diversified global balanced fund, the asset allocation of a managed investment program, together with the monthly ‘click’ feature, which locks in gains over time. Investors will also have the opportunity to lock in returns in down markets, as the guarantee on the highest month-end value is available regardless of when a Fund is purchased,” said Eric Frape, vp, product management for ClaringtonFunds said.

The funds will have three key investments: Government of Canada strip bonds; T-bills; and units of the ABN AMRO Global Exposure Fund, which provides growth potential through a portfolio based on international stock indices.

The funds are available at an initial issue price of $10 per unit, are offered through simplified a prospectus. They are open-ended and RSP eligible.

http://www.newswire.ca/en/releases/archive/February2005/14/c3925.html