IA Clarington Investments Inc. is proposing changes to streamline its fund family, in order to provide investors and advisors with a more efficient line-up, the company said Tuesday.

Subject to investor and regulatory approval, IA Clarington proposes to merge 10 of its mutual funds into other IA Clarington funds effective June 5.

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, IA Clarington said.

For a complete list of the affected funds, please read the attached list.

“The IA Clarington mutual fund family will continue to offer an excellent choice for investors,” said David Scandiffio, president of IA Clarington, in a release. “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.”

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, 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.

IA Clarington also announced portfolio sub-advisor changes and additions.

QV Investors Inc. will be appointed as sub-advisor to IA Clarington Canadian Balanced Fund effective June 5.

“QV is a very successful portfolio manager and we are pleased to be increasing its presence in our line-up,” said Scandiffio. QV also currently manages 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. This fund will continue to be managed by IA Clarington’s affiliate, Industrial Alliance Investment Management Inc.

IE