IA Clarington Investments Inc. Thursday proposed changes to its fund lineup including the addition of a Strategic U.S. Growth & Income mandate to be run by IA Clarington’s portfolio advisor Dan Bastasic.
“The U.S. is re-emerging as a key market for investors,” says David Scaniffio, IA Clarington president. “Dan Bastasic is extremely well positioned to find the best opportunities in the U.S., whether its equities or bonds.”
Bastasic employs a full capital structure analysis in his security selection process, and includes significant U.S. holdings in his Strategic family of IA Clarington funds.
“The U.S. market can offer Canadian investors a necessary source of diversification for their investment portfolios,” said Bastasic, senior vice president, investments at IA Clarington.
“The years of recovery since the last recession have likely sowed the seeds for the next secular bull market as a deleveraging consumer, a recovering housing market and new found supplies of energy are laying the ground work for a multi-year investment opportunity and a very good compliment to Canadian equity exposure.”
A special meeting of investors will be held on September 25 to consider the proposed lineup changes, which involve changes to the investment objective and strategies of Distinction Monthly Income Portfolio, Distinction Monthly Income Class and the merger of IA Clarington Energy Class into IA Clarington Canadian Leaders Class.
Beyond the proposal to change the objective of Distinction Monthly Income Portfolio to the Strategic U.S. Growth & Income Fund mandate, IA Clarington is proposing to change the objective and strategies of Distinction Monthly Income Class to invest in IA Clarington Strategic Equity Income Fund as an underlying fund. Investors will benefit from the income-oriented holdings, which will provide a similar source of monthly income that they currently receive.
Lastly, the company is proposing the merge the IA Clarington Energy Class into IA Clarington Canadian Leaders Class. Investors will continue to get Energy exposure through the Canadian Leaders mandate albeit with broader market exposure in a fund with a lower risk profile.
IA Clarington is a subsidiary of Industrial Alliance Insurance and Financial Services Inc. (TSX:IAG).