Firm says the fund has achieved its 'capital appreciation and risk-mitigation objectives'
iA Clarington Investments Inc. has announced an early maturity date of May 08 for its Target Click 2020 Fund.
IA Clarington’s Target Click Funds are global balanced funds that guarantee a unit value at maturity that is equal to the highest month-end unit value. As each Target Click Fund approaches its maturity date, the allocation to fixed income is increased and the allocation to equities is reduced.
“We're very pleased that the fund has achieved its capital appreciation and risk-mitigation objectives,” said Adam Elliott, senior vice-president & national sales manager at iA Clarington. “We believe the most appropriate course, under these circumstances, is to accelerate the fund's maturity date.”
The current guaranteed amount is $14.89 per unit for Series A and $17.05 per unit for Series F. Investors still in the fund at market close on May 08 will be switched into IA Clarington Money Market Fund Series A or Series F, depending on the series of the fund they hold. These investors will receive the net asset value (NAV) per unit as at May 8, 2020 or the net present value of the guaranteed amount per unit, whichever is higher.
Meanwhile, investors who redeem their units in the fund on May 8 will receive the NAV per unit that day or the net present value of the guaranteed amount per unit, whichever is higher. Investors who redeem before May 8 will receive the NAV per unit on the day of redemption.
If necessary, iA Clarington will waive its management fees on the fund and absorb fund expenses to ensure that the NAV per unit equals the full guaranteed amount on the accelerated maturity date.
