IA Clarington Investments Inc. says it is amending the investment objectives of eight of its corporate class funds, subject to regulatory approval.
The amendments are in response to changes to Canadian tax laws that were introduced in the 2013 federal budget eliminating the favourable tax treatment relating to forward contracts which recharacterize income as more tax efficient capital gains.
The affected funds are:
- IA Clarington Strategic Income Class
- IA Clarington Strategic Corporate Bond Class
- IA Clarington Focused Balanced Class
- IA Clarington Tactical Bond Class
- IA Clarington Tactical Income Class
- IA Clarington Global Tactical Income Class
- IA Clarington Canadian Balanced Class
- IA Clarington Dividend Growth Class
IA Clarington says it expects to receive the appropriate regulatory approvals to make the investment objective changes without the approval of securityholders, subject to certain conditions.
The changes will take effect on Dec. 30. The new investment objectives will permit each fund to invest substantially all of its assets in securities of another mutual fund managed by IA Clarington.
IA Clarington notes that there are no fees or charges incurred by these changes to securityholders, nor will securityholders realize a capital gain or loss as a result of these changes.
The funds remain closed to new purchases.