Toronto-based IA Clarington Investments Inc. is amending the investment objectives of eight of its corporate-class funds, subject to regulatory approval. The changes are in response to Canadian tax law changes that were introduced in the 2013 federal budget to eliminate the favourable tax treatment relating to forward contracts that had recharacterized income as more tax-efficient capital gains. The affected funds include: 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, and IA Clarington Dividend Growth Class. The changes were to take effect on or about 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. There are no fees or charges to unitholders, nor will unitholders realize a capital gain or loss as a result of these changes.
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