Toronto-based ClaringtonFunds Inc. has introduced Clarington Target Click Funds, a series of four “life cycle” funds managed by AMRO Asset Management Canada Ltd., the Canadian affiliate of ABN. The funds offer four fixed maturity dates — 2010, 2015, 2020 and 2025 — and are guaranteed to pay at maturity the greater of the unit price at inception or the highest month-end unit price achieved over the life of the fund. The funds have three main investments: Government of Canada strip bonds, cash and T-bills, and units of ABN AMRO Global Exposure Fund. As the funds approach maturity, the asset allocation of each shifts from equity to fixed-income. “The product is well suited for people with specific investment goals in mind, such as retirement or education savings,” says Eric Frape, ClaringtonFunds’ vice president of product management in Toronto. “But these funds could form part of any investor’s portfolio.” Front-end commissions are negotiable with the client up to 5%. Low-load commission is 1%, with a 2% redemption fee if sold within the first two years. If purchased on a DSC basis, commissions are 5%, with redemption fees beginning at 5.75% in Year 1 and ending at 2% in Year 7. (The 2010 fund isn’t available in DSC. Fees and commissions decrease as the fund approaches maturity, as a greater portion of its portfolio is invested in the passive component.) Trailing commissions for front-end and low-load purchases range from 1.25% and decrease to 0.5%. For the DSC option, they begin at 0.625% and decrease to 0.25%. Management fees for Series A units start at 2.60% and decrease to 1.15%; management fees for F-class shares begin at 1.35%
and decline to 0.65%. Minimum investment is $500.