iA Clarington announces fee reductions, active ETF series

Four new active ETFs and reduced fees across a range of asset classes has been announced by iA Clarington.

The Toronto based firm will also merge 10 funds and offer a simplified fee-based purchase option.

"With these enhancements, our goal is to increase return potential for investors and add greater flexibility and simplicity to the way they and their advisors access our lineup of high-conviction, actively managed solutions," said Eric Frape, Senior Vice-President, Product & Investments, iA Clarington.

Lower fees

The fee reductions are for 33 funds across a wide range of asset classes including Canadian Fixed Income and Canadian Equity, for example:

"These fee reductions demonstrate our commitment to providing investors with cost-effective access to actively managed strategies. The vast majority of price-reduced series have lower fees than their peer group averages, and more than 50% have fees in the top quartile. This translates into very attractive entry points for investors seeking actively managed solutions for major asset class exposures," said Frape.

New Active ETFs

iA Clarington’s new active ETF series will be available for three of its fixed-income funds - IA Clarington Core Plus Bond Fund (TSX: ICPB), IA Clarington Global Bond Fund (TSX: IGLB), and IA Clarington Emerging Markets Bond Fund (TSX: IEMB).

"Market volatility and the low, but rising, interest rate environment have made the fixed-income market more complex, increasing demand for actively managed strategies. Our new Active ETF Series provide convenient access to three unique mandates for advisors and self-directed investors who prefer using an exchange-traded vehicle," said Frape.

The fee structure of Active ETF Series is the same as Series F, the Funds' fee-based series.

Streamlined fee options

Effective October 22, Series EF – iA Clarington's Elite Series fee-based purchase option – will be closed to new investors.

For these investors, Series F will serve as the firm's single fee-based purchase option and auto-switches into a separate, high-net-worth series will no longer be necessary.

Proposed fund mergers

The following fund mergers are proposed and, subject to regulatory and other approvals:

iA Clarington is proposing an effective date of March 22, 2019 for these mergers. Effective October 22, 2018, the proposed Terminating Funds will be closed to new investors.