Semi-annual client statements as of June 30 will soon be available and a few new notes will be included to explain various changes regarding the holding of some products. Here is an overview of these notes and some additional information.
1. Update of the risk factors associated with each fund
Affected clients: all clients holding units in our segregated funds.
Client note:
An update to the risk factors associated with each Fund was made in 2023. You will find the details in the Fund Facts edition dated December 31, 2023, on our website.
This update does not result in any changes to the total value of your investments, the number of units and their unit value, the total management expense ratio (MER), the fundamental investment objective or the risk profile of the Fund.
Finally, this change does not affect the contractual benefits, guarantees or maturity date of your contract.
Context:
In the spirit of continuous improvement, we have added and updated some risks to which the funds are exposed to reflect the current reality of our funds and of financial markets globally.
The various risks associated to each of the funds are indicated in the fund facts and they are defined in the information folder. These two publications are here.
2. Target asset allocation of the Real Estate Income (iA) Fund
Affected clients: clients holding units of the Real Estate Income (iA) Fund.
Client note:
As of December 31, 2023, the target asset allocation of the Real Estate Income (iA) Fund is modified to represent 100% equities, as opposed to the previous allocation of 15% income and 85% equities.
Context:
Although the fund may hold a small fixed-income proportion on occasion, this change better represents the reality of the fund’s general positioning.
We invite advisors to review their clients’ portfolios for those invested significantly in the Real Estate Income (iA) Fund to ensure that their portfolio still corresponds to their investor profile.
3. Replacement of the underlying fund for the Dividend Growth (iA) Fund
Affected clients: clients holding units of the Dividend Growth (iA) and the Dividend Growth (iA) Hybrid 75/25 funds.
Client note:
In April 2024, the conclusion of an analysis of this Fund led to the replacement of the underlying fund in which it is invested. To do so, units of the IA Clarington Canadian Dividend Fund will gradually replace the units of the current IA Clarington Dividend Growth Class underlying fund.
At the end of this exercise, which may take a few years, all the assets of the Dividend Growth (iA) Fund will be invested in the IA Clarington Canadian Dividend underlying fund. This replacement is not anticipated to cause changes to your investments, the fundamental investment objective, or the risk profile of the Fund.
Finally, this change does not affect your contractual benefits, but may cause a variation in capital gain or loss for non-registered contracts until the underlying fund is totally replaced.
Context:
Due to purchase restrictions imposed to IA Clarington Dividend Growth Class, units of the IA Clarington Canadian Dividend underlying fund will progressively replace those of the current underlying fund in which are invested the Dividend Growth (iA) and Dividend Growth (iA) Hybrid 75/25 funds.
Both the way and time for the replacement are determined to minimize the tax impact of clients with non-registered accounts. For instance, since the beginning of April, new deposits made in the two above-mentioned funds are invested in units of the IA Clarington Canadian Dividend underlying fund.
The investment objective is not modified, and no action is required from clients and advisors. Both underlying funds are managed by the same iA Global Asset Management team, with the same risk level to offer a portfolio driven by dividends, composed mainly of equities from well-known large Canadian corporations striving to pay out regular and increasing dividends.
We recommend that you connect with your sales team for any questions related to these notes.
