Focused on Long-Term Wealth Creation

Dan Bastasic & the IA Clarington Strategic Funds

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.

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

Subject1 year3 year5 year10 yearSince inception
IA Clarington Strategic Income Fund – Series F4.14%5.64%5.74%5.68%6.72%
60% S&P TSX Composite Index/40% FTSE Canada Universe Bond Index3.68%4.77%6.21%5.50%5.61%
Peer group (Canadian Neutral Balanced)4.29%3.90%5.06%4.58%5.16%
Number of funds in peer group
383346325255164
Quartile ranking
2nd1st2nd1st1st

On a 3-year rolling return basis, the Fund has outperformed its peer group (Canadian Neutral Balanced) 83% of the time since inception (95 of 114 rolling periods).

Source: Morningstar Direct, IA Clarington Investments Inc., as at January 31, 2024. 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 strong 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

Subject1 year3 year5 year10 yearSince inception
IA Clarington Strategic Equity Income Fund – Series FX6.05%9.40%7.71%7.17%8.27%
S&P/TSX Composite Index4.62%9.91%9.57%7.59%7.49%
Peer group (Canadian Dividend & Income Equity)2.07%9.64%7.61%6.20%6.91%
Number of funds in peer group
399374345227162
Quartile ranking
1st3rd3rd2nd1st

On a 3-year rolling return basis, the Fund has outperformed the peer group (Canadian Dividend & Income Equity) 76% of the time since inception (87 of 114 rolling periods).

Source: Morningstar Direct, IA Clarington Investments Inc., as at January 31, 2024. 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

Designed for investors seeking enhanced fixed-income returns, the 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

Subject1 year3 year5 year10 yearSince inception
IA Clarington Strategic Corporate Bond Fund – Series F5.76%2.36%3.51%3.70%4.58%
FTSE Canada All Corporate Bond Index4.52%-1.27%2.03%2.78%3.25%
Peer group (High Yield Fixed Income)6.27%0.78%2.56%3.02%4.14%
Number of funds in peer group
26625022915880
Quartile ranking
3rd1st2nd2nd2nd

On a 3-year rolling return basis, the Fund has outperformed its peer group (High Yield Fixed Income) 67% of the time since inception (76 of 113 rolling periods).

Source: Morningstar Direct, IA Clarington Investments Inc., as at January 31, 2024. Inception date: September 26, 2011.


Disclaimer

For definitions of technical terms in this piece, please visit iaclarington.com/glossary and speak with your investment advisor.

Source for all charts is Morningstar Direct. All data as at January 31, 2024.

Series F is only available through a fee-based account with a full-service investment dealer. Please refer to the prospectus to learn more about Series F and its targeted payout options. If you buy other series of the Fund any differences in performance is primarily due to different fees and expenses.

Quartile ranking are based on fund returns for periods ending January 31, 2024, and are subject to change monthly. The peer group is divided into four equal quartiles and shows how a fund has performed compared to the funds in the group. The top 25% of funds are 1st quartile, the next 25% of fund are 2nd, the next group are 3rd and the 25% with the poorest performance are 4th. Peer groups are defined to compare similar mutual funds.

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.

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.

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 are historical annual compounded total returns.

Non-traditional fixed income asset classes may carry higher risk, but generally provide higher yield than traditional fixed income asset classes. 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 should not be acted upon without obtaining legal, tax, and investment advice from a licensed professional. Statements by the portfolio manager or sub-advisor represent their professional opinion and do not necessarily reflect the views of iA Clarington. Specific securities discussed are for illustrative purposes only and should not be considered a recommendation to buy or sell. 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 may not be repeated. Unless otherwise stated, the source for information provided is the portfolio manager. Statements that pertain to the future represent the portfolio manager’s current view regarding future events. Actual future events may differ.

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, iA Wealth and the iA Wealth logo, and iA Global Asset Management and the iA Global Asset Management logo, are trademarks of Industrial Alliance Insurance and Financial Services Inc. and are used under license. iA Global Asset Management Inc. (iAGAM) is a subsidiary of Industrial Alliance Investment Management Inc. (iAIM).