Laurentian Bank of Canada today announced that the Clarington Target Click Funds are now available to investors through its mutual fund broker subsidiary, LBC Financial Services.

The funds are designed to provide investors with an opportunity to participate in the growth potential of global equity markets while protecting their invested capital and gains against downside risk. The funds guarantee, at their scheduled maturity date, the highest month-end value ever achieved over the life of the fund.

With the Clarington Target Click Funds, investors can choose from four global balanced funds with laddered maturity dates. Automatic asset allocation lowers risk as the fund approaches its scheduled maturity date by increasing allocation to fixed income and decreasing equity exposure, thus providing downside protection if the fund is held to maturity. There is no cap or limit on returns, meaning investors receive the full benefit of the funds’ exposure to international equity markets.

The Clarington Target Click Funds invest in a portfolio with the asset mix of “active” and “passive” components. The allocation between the active and the passive components changes as the fund approaches maturity. The active component is indirectly invested in global equity indices, including the United States, Europe and the Far East. The passive component is comprised of fixed-income securities, including strip bonds and T-bills, to support the guaranteed value at the scheduled maturity date.

Key Features of the funds include:

  • Monthly “click” component automatically captures gains, guaranteeing the highest month-end unit value at the scheduled maturity date, regardless of the investment date, provided the fund is held to maturity;
  • Decreasing risk over time;
  • Global diversification;
  • Ability to buy and sell daily;Laddered maturity dates: 2010, 2015, 2020 and 2025;
  • No cap or limit on returns;
  • Minimum initial investment of $500 (subsequent $100 investments, or $50 in case of a systematic savings plan);
  • Eligibility for registered and non-registered accounts;
  • Management fees from 2.85% to 1.25%, declining as the fund nears maturity;
  • Portfolio management by ABN AMRO Asset Management Canada Limited, an affiliate of ABN AMRO Asset Management (Netherlands) B.V.; and
  • Guarantee with regard to the highest unit value ever achieved, provided by ABN AMRO Bank N.V.

The Clarington Target Click Funds are offered at all 158 branches of Laurentian Bank of Canada and LBC Financial Services as well as through the Telebanking Centre.