  In this paper we propose a model-based method for clustering subjects for
which functional data together with covariates are observed. The model allows
the covariance structures within the different clusters to be different. The
model thus extends a model proposed by James and Sugar (2003). We derive an EM
algorithm to estimate the parameters. The method is applied to annually
laminated (varved) sediment from lake Kassj\"on in northern Sweden, to infer on
past climate changes.
