10-Year Anniversary

Dan Bastasic & the IA Clarington Strategic Funds

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IA Clarington Strategic Funds 10-year anniversary

One of the rare portfolio managers with deep expertise in both equities and fixed income, Dan Bastasic has been helping investors achieve their financial goals for almost a quarter-century.

Celebrating his 10th anniversary at iA Clarington, Dan offers investors a carefully calibrated blend of alpha potential and risk mitigation with the aim of delivering superior risk-adjusted performance across the entire market cycle.

IA Clarington Strategic Funds

IA Clarington Strategic Income Fund

An actively managed, income-focused balanced fund, IA Clarington Strategic Income Fund provides investors with high-conviction exposure to attractive opportunities across the capital structure.

Key features:

  • Potential for higher yield than traditional balanced funds.
  • Flexibility to adjust asset allocation as market conditions warrant.
  • Rigorous bottom-up investment process that incorporates Dan’s top-down macro outlook.

Performance

 1 year3 year5 year10 yearSince inception
IA Clarington Strategic Income Fund – Series F19.36%7.24%6.97%8.03%7.73%
60% S&P TSX Composite Index/40% FTSE Canada Universe Bond Index14.66%8.67%6.87%6.77%6.41%
Peer group (Canadian Neutral Balanced)13.59%6.71%5.63%6.37%6.01%
Number of funds in peer group
497473433201192
Quartile ranking
1st2nd1st1st1st

On a 3-year rolling return basis, the Fund has outperformed its peer group (Canadian Neutral Balanced) 78% of the time since inception (67 of 86 rolling periods).

Source: Morningstar Direct, IA Clarington Investments Inc., as at September 30, 2021. Inception date: August 29, 2011.

IA Clarington Strategic Equity Income Fund

A pure equity strategy with a focus on high-quality dividend payers, IA Clarington Strategic Equity Income Fund provides exceptional potential for long-term income generation and capital appreciation.

Key features:

  • A diversified approach to equity income investing.
  • Provides broad exposure across a range of sectors with the flexibility to invest beyond Canada for an expanded opportunity set.
  • Rigorous bottom-up investment process that incorporates Dan’s top-down macro outlook.

Performance

 1 year3 year5 year10 yearSince inception
IA Clarington Strategic Equity Income Fund – Series FX27.39%8.73%7.98%9.69%9.15%
S&P/TSX Composite Index28.02%11.07%9.64%8.84%8.01%
Peer group (Canadian Dividend & Income Equity)29.24%7.99%7.19%7.87%7.42%
Number of funds in peer group
481447391181180
Quartile ranking
3rd
2nd
2nd1st1st

On a 3-year rolling return basis, the Fund has outperformed the peer group (Canadian Dividend & Income Equity) 98% of the time since inception (84 of 86 rolling periods).

Source: Morningstar Direct, IA Clarington Investments Inc., as at September 30, 2021. Inception date: August 29, 2011.

Series FX is closed to new investors. Investors who currently hold this series may purchase additional securities. IA Clarington Investments Inc. may re-open the series to new investors in its discretion.

IA Clarington Strategic Corporate Bond Fund

Tailor-made for today’s low interest rate environment, IA Clarington Strategic Corporate Bond Fund provides active, risk-conscious exposure to high-yield corporate bonds with strong potential for long-term outperformance.

Key features:

  • Provides equity-like return potential with less risk.
  • Lower interest rate sensitivity than a portfolio of investment grade bonds.
  • Rigorous bottom-up investment process that incorporates Dan’s top-down macro outlook.

Performance

 1 year3 year5 year10 yearSince inception
IA Clarington Strategic Corporate Bond Fund – Series F9.50%4.97%3.31%5.28%5.29%
FTSE Canada All Corporate Bond Index-0.64%5.07%3.61%4.11%4.22%
Peer group (High Yield Fixed Income)7.99%4.36%3.88%5.13%5.04%
Number of funds in peer group
441389335101101
Quartile ranking
2nd
3rd2nd2nd2nd

On a 3-year rolling return basis, the Fund has outperformed its peer group (High Yield Fixed Income) 56% of the time since inception (48 of 85 rolling periods).

Source: Morningstar Direct, IA Clarington Investments Inc., as at September 30, 2021. Inception date: August 29, 2011.


Disclaimer

For definitions of technical terms, visit iaclarington.com/glossary or speak with your financial advisor.

Source for all charts is Morningstar Direct. All data as at September 30, 2021.

Series F and its targeted payout options are sold with no sales charge and no redemption fee, but are only available to investors through a fee-based account with a full- service investment dealer. There may be a fee negotiated directly between the investor and his/her dealer for services provided. Please speak with your dealer about these fee-based series and whether they are available. Management fees and operating expenses are paid by the Funds. There is no trailing commission paid for these series of the Funds. There may be other fees such as short-term trading fees that may apply to certain transactions. Please refer to the prospectus for a more detailed discussion on the types of fees that exist.

Quartile rankings are based on fund returns for periods ending September 30, 2021, and are subject to change monthly. The quartiles divide the data into four equal regions. Expressed in terms of rank (1, 2, 3 or 4), the quartile measure shows how well a fund has performed compared to all other funds in its peer group. Peer groups are defined such that mutual funds are ranked only versus other mutual funds that are in the same category. The top 25% of funds (or quarter) are in the first quartile, the next 25% of funds are in the second, and the next group is in the third quartile. The 25% of funds with the poorest performance are in the fourth quartile.

The performance data comparison presented is intended to illustrate the Fund’s historical performance as compared with historical performance of widely quoted market indices. There are various important differences that may exist between the Fund and the stated indices that may affect the performance of each.

The benchmark index for IA Strategic Corporate Bond Fund, the FTSE Canada Corporate Bond Index, is based on the Corporate sector of the FTSE Canada Universe Bond Index. The Corporate sector is further divided into sub-sectors based on major industry groups: Financial, Communication, Industrial, Energy, Infrastructure, Real estate, and Securitization. The Fund can invest in both investment grade and high yield bonds while the benchmark has exposure only to investment grade bonds. The Fund may have exposure to bonds domiciled both in Canada and outside of Canada while the benchmark only has exposure to bonds domiciled in Canada. The Fund may have currency risk exposure while the benchmark has none. The Fund may hold cash while the benchmark does not. It is not possible to invest directly in market indices. The performance comparison is for illustrative purposes only and does not imply future performance.

The benchmark index for IA Clarington Strategic Income Fund is a blend of 40% FTSE Canada Universe Bond Index and 60% S&P/TSX Composite Index. The blended benchmark presented is intended to provide a more realistic representation of the general asset classes in which the Fund invests. The FTSE Canada Universe Bond Index is comprised of Canadian investment grade bonds and has significantly different portfolio duration characteristics. The FTSE Canada Universe Bond Index consists of a broadly diversified selection of investment-grade Government of Canada, provincial, corporate and municipal bonds issued domestically in Canada. The S&P/TSX Composite Index is the premier indicator of market activity for Canadian equity markets, with 95% coverage of Canadian-based, TSX-listed companies. The index includes common stock and income trust units and is designed to offer the representation of a broad benchmark index while maintaining the liquidity characteristics of narrower indices. The Fund’s fixed income component can invest in both investment grade and high yield bonds while the benchmark has exposure only to investment grade bonds. The Fund may have exposure to equities and bonds domiciled both in Canada and outside of Canada while the benchmark only has exposure to equities and bonds domiciled in Canada. The Fund may have currency risk exposure while the benchmark has none. The Fund may hold cash while the benchmark does not. Overall, the Fund’s bond and equity exposure can differ, because the Fund does not use a fixed ratio similar to the benchmark. It is not possible to invest directly in market indices. The performance comparison is for illustrative purposes only and does not imply future performance. Effective August 8, 2011, IA Clarington Investments Inc. was appointed as sub-advisor to the Fund.

The benchmark index for IA Clarington Strategic Equity Income Fund, the S&P/TSX Composite Index, is the premier indicator of market activity for Canadian equity markets, with 95% coverage of Canadian-based, TSX-listed companies. The index includes common stock and income trust units and is designed to offer the representation of a broad benchmark index while maintaining the liquidity characteristics of narrower indices. The Fund invests in dividend paying stocks while the benchmark is comprised of companies which may not necessarily pay a dividend. The Fund may have exposure to equities domiciled both in Canada and outside of Canada while the benchmark only has exposure to equities domiciled in Canada. The Fund may have currency risk exposure while the benchmark has none. The Fund may hold cash while the benchmark does not. It is not possible to invest directly in market indices. The performance comparison is for illustrative purposes only and does not imply future performance. Effective August 8, 2011, IA Clarington Investments Inc. was appointed as sub-advisor to the Fund.

Indicated mutual fund rates of return include changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Returns for time periods of more than one year are historical annual compounded total returns while returns for time periods of one year or less are cumulative figures and are not annualized. Where applicable, compound growth charts are used only to illustrate the effects of a compound growth rate and are not intended to reflect future values or returns of a fund. A mutual fund's "yield" refers to income generated by securities held in the fund’s portfolio and does not represent the return of or level of income paid out by the fund.

The information provided herein does not constitute financial, tax or legal advice. Always consult with a qualified advisor prior to making any investment decision. Statements by the portfolio manager or sub-advisor responsible for the management of the fund's investment portfolio, as specified in the applicable fund's prospectus ("portfolio manager") represent their professional opinion, do not necessarily reflect the views of IA Clarington, and should not be relied upon for any other purpose. Information presented should not be considered a recommendation to buy or sell a particular security. Specific securities discussed are for illustrative purposes only. Mutual funds may purchase and sell securities at any time and securities held by a fund may increase or decrease in value. Past investment performance of a security may not be repeated. Unless otherwise stated, the source for information provided is the portfolio manager. Statements that pertain to the future represents the portfolio manager's current view regarding future events. Actual future events may differ. IA Clarington does not undertake any obligation to update the information provided herein. The information presented herein may not encompass all risks associated with mutual funds. Please read the prospectus for a more detailed discussion on specific risks of investing in mutual funds. Commissions, trailing commissions, management fees, brokerage fees and expenses all may be associated with mutual fund investments, including investments in exchange-traded series of mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Trademarks displayed herein that are not owned by Industrial Alliance Insurance and Financial Services Inc. are the property of and trademarked by the corresponding company and are used for illustrative purposes only. The iA Clarington Funds are managed by IA Clarington Investments Inc. iA Clarington and the iA Clarington logo, and iA Wealth and the iA Wealth logo, are trademarks of Industrial Alliance Insurance and Financial Services Inc. and are used under license.