Firms telegraph changes for funds

Firms telegraph changes for funds

Firms telegraph changes for funds

iA Clarington Investments and Sun Life Global Investments have announced updates to selected fund products that will take effect in the coming months.

iA Clarington announced that effective December 31, 2019, its IA Clarington U.S. Equity Opportunities Fund will no longer be a qualified investment for registered plans, including but not limited to RRSPs, RRIFs, RESPs, RDSPs and TFSAs.

No new purchases of fund units are being processed for registered accounts, and unitholders who hold the fund in a registered account are advised to exit the fund before December 31 to avoid adverse tax consequences. While the fund may still be held in non-registered accounts, it may be less tax-efficient for non-registered account holders after December 31.

Meanwhile, Sun Life Global Investments has announced changes on two of its fund offerings. Set to take effect on February 26, 2020, the changes are designed to align the features of the two funds with those of the Sun Life Global Investments Private Investment Pools, which are expected to be available on or about the same date.

On February 26, the firm’s Sun Life Opportunistic Fixed Income Fund will be renamed the Sun Life Opportunistic Fixed Income Private Pool. Series A low load (LL) and deferred sales charge (DSC) purchase options are to be closed to investment in new accounts.

Management fees for Series A units of the fund will be reduced from 1.55% to 1.52%, while fees for Series F units will be reduced from 0.8% to 0.77%.

In addition, Series O securities of the Sun Life Opportunistic Fixed Income Fund are no longer available for purchase effective immediately.

Meanwhile, the Sun Life Real Assets Fund will be renamed the Sun Life Real Assets Private Pool on February 26. Series A LL and DSC purchase options, as well as the Series O purchase option, will be closed to investment in new accounts.

On the same date, management fees for Series A units will be lowered from 1.95% to 1.9%; both Series F and Series O fees will be reduced from 0.95% to 0.9%.

“With these changes, Sun Life Opportunistic Fixed Income Fund and Sun Life Real Assets Fund will no longer be eligible for reduced management fees within the Sun Life Global Investments Private Client Program,” the firm said in a statement.

 

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