Headnote

National Policy 11-203 Process for Exemptive Relief Applications in Multiple Jurisdictions - Relief granted to from paragraph 2.5(2)(a) of National Instrument 81-102 Mutual Funds to permit mutual funds to invest up to 10% of net assets in exchange-traded commodity pools that correlate to a multiple (or inverse multiple) of the performance of an underlying index, which are not subject to National Instrument 81-101 Mutual Fund Prospectus Disclosure, and qualified for sale using a long form prospectus, subject to certain conditions.

Applicable Legislative Provisions

National Instrument 81-102 Mutual Funds, paragraph 2.5(2)(a) and section 19.1.

January 13, 2009

In the Matter of the Securities Legislation of ONTARIO

AND

IN THE MATTER OF THE PROCESS FOR EXEMPTIVE RELIEF APPLICATIONS IN MULTIPLE JURISDICTIONS

AND

BMO INVESTMENTS INC.

BMO HARRIS INVESTMENT MANAGEMENT, INC.

BMO NESBITT BURNS INC.

CALDWELL INVESTMENT MANAGEMENT LTD.

FÉDÉRATION DES CAISSES DESJARDINS DU QUÉBEC

FIRST DEFINED PORTFOLIO MANAGEMENT CO.

GUARDIAN GROUP OF FUNDS LTD.

MACKENZIE FINANCIAL CORPORATION

QWEST INVESTMENT MANAGEMENT CORP. AND

SPROTT ASSET MANAGEMENT INC.

(each a MANAGER)

AND

IN THE MATTER OF

BetaPro Management Inc.

(BetaPro)

DECISION

Background

The Ontario Securities Commission has received an application from the Managers with respect to mutual funds managed by them that are subject to National Instrument 81-102 Mutual Funds (NI 81-102) (the Existing Funds), and such other mutual funds subject to NI 81-102 that are managed by a Manager or an affiliate of the Manager in the future (together with the Existing Funds, individually, a Fund and, collectively, the Funds), and BetaPro, the manager and trustee of the Horizons BetaPro ETFs listed in Schedule A (each an Existing HBP ETF) and such other similar funds managed by BetaPro in the future (together with the Existing HBP ETFs, individually a HBP ETF and, collectively, the HBP ETFs), for a decision under Ontario securities legislation (the Legislation) exempting the Funds from paragraph 2.5(2)(a) of NI 81-102 to permit each Fund to invest in HBP ETFs (the Exemption Sought).

Under the Process for Exemptive Relief Applications in Multiple Jurisdictions:

(i) the Ontario Securities Commission is the principal regulator for this application; and

(ii) the Managers on behalf of the Funds have provided notice that subsection 4.7(2) of Multilateral Instrument 11-102 Passport System (MI 11-102) is intended to be relied upon in each of the other Provinces and Territories of Canada (together with Ontario, the Jurisdictions, and individually a Jurisdiction).

Interpretation

Terms defined in National Instrument 14-101 Definitions and MI 11-102 have the same meaning if used in this decision, unless otherwise defined.

Representations

This decision is based on the following facts represented by each of the Managers on its own behalf and on behalf of the Funds it or an affiliate manages or will manage, and by BetaPro on its own behalf and on behalf of the HBP ETFs:

Managers

1Each Existing Fund is managed by a Manager. Each future Fund will be managed by a Manager, or an affiliate of the Manager.

2None of the Managers, or any of the Existing Funds, is in default of securities legislation in any of the Jurisdictions.

3Each Existing Fund is, and each future Fund will be, (a) a mutual fund organized under the laws of Canada or a Jurisdiction, and (b) a reporting issuer under the laws of one or more of the Jurisdictions.

4Securities of each Existing Fund are, and securities of each future Fund will be, distributed pursuant to a prospectus that has been filed with, and receipted by, some or all of the securities regulatory authorities in the Jurisdictions.

5The location of the head office of each Manager is as follows:

BMO Investments Inc.

Toronto, Ontario

BMO Harris Investment Management, Inc.

Toronto, Ontario

BMO Nesbitt Burns Inc.

Toronto, Ontario

Caldwell Investment Management Ltd.

Toronto, Ontario

Fédération des Caisses Desjardins Du Québec

Montreal, Québec

First Defined Portfolio Management Co.

Toronto, Ontario

Guardian Group Of Funds Ltd.

Toronto, Ontario

Mackenzie Financial Corporation

Toronto, Ontario

Qwest Investment Management Corp.

Vancouver, British Columbia

Sprott Asset Management Inc.

Toronto, Ontario

BetaPro

6BetaPro, a corporation incorporated under the laws of Canada, acts as the trustee and manager of each HBP ETF, and will act as the trustee and manager of any future HBP ETF. The head office of BetaPro is located in Toronto, Ontario.

7Neither BetaPro, nor any of the HBP ETFs listed in Schedule A, are in default of securities legislation in any of the Jurisdictions.

8Each HBP ETF is, and each future HBP ETF will be, (a) a mutual fund organized under the laws of Ontario, and (b) a reporting issuer under the laws of some or all of the Jurisdictions.

9Securities of each HBP ETF are, and securities of any future HBP ETF will be, listed on the Toronto Stock Exchange (the TSX). BetaPro will not file a final prospectus for an HBP ETF unless the TSX has conditionally approved the listing of securities of the HBP ETF.

10Each HBP ETF is, and each future HBP ETF will be, a commodity pool, as such term is defined in section 1.1(1) of National Instrument 81-104 Commodity Pools (NI 81-104), in that each HBP ETF has adopted, and each future HBP ETF will adopt, fundamental investment objectives that permit that HBP ETF to use or invest in financial instruments in a manner that is not permitted under NI 81-102.

11Each HBP ETF’s investment objective is, and each future HBP ETF’s investment objective will be, to provide daily results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to a multiple or the inverse (opposite) multiple of the daily performance of a “permitted index” as defined in NI 81-102 (the Underlying Index).

12In order to achieve its investment objective, each HBP ETF will invest in equity securities and/or other financial instruments, including derivatives.

13An HBP ETF will not track its Underlying Index by a multiple (or inverse multiple) that exceeds +200% (or -200%) on a daily basis. Each bull HBP ETF uses, or will use, financial instruments to track its Underlying Index by +200% on a daily basis (a Bull HBP ETF). Each bear HBP ETF uses, or will use, financial instruments to track its Underlying Index by -200% on a daily basis (a Bear HBP ETF).

14Each Bull HBP ETF will be rebalanced daily to ensure that its exposure and performance will be +200% of its Underlying Index on each day on which it is valued and each Bear HBP ETF will be rebalanced daily to ensure that its exposure and performance will be ‑200% of its Underlying Index on each day on which it is valued.

15The maximum exposure of an investment by a Fund in a HBP ETF will be the amount invested by the Fund in securities of the HBP ETF.

16The HBP ETFs are attractive investments for the Funds as they provide an efficient and cost effective means of achieving diversification and exposure that would not otherwise be possible.

17An investment by a Fund in units of a HBP ETF will represent the business judgment of responsible persons uninfluenced by considerations other than the best interests of the Fund.

Decision

The principal regulator is satisfied that the decision meets the test set out in the Legislation for the principal regulator to make the decision.

The decision of the principal regulator under the Legislation is that the Exemption Sought is granted in those Jurisdictions in which a Fund is a reporting issuer provided that:

(a) A Fund may not purchase securities of an HBP ETF if, immediately after the purchase, more than 10% of the net assets of the Fund, taken at market value at the time of the purchase, would consist of securities of HBP ETFs;

(b) In addition to (a), if short selling relief has been obtained in respect of a Fund, the Fund may not purchase securities of a Bear HBP ETF or sell any security short if, immediately after the transaction, the aggregate market value of (i) all securities sold short by the Fund, and (ii) all securities of Bear HBP ETFs held by the Fund, would exceed 20% of the Fund’s net assets, taken at market value at the time of the transaction;

(c) the investment by a Fund in securities of a HBP ETF is in accordance with the fundamental investment objective of the Fund;

(d) the Exemption Sought does not apply to a Fund that is a money market fund;

(e) the prospectus of each Fund discloses, or will disclose the next time it is renewed after the date hereof, (i) to the extent applicable, the risks associated with an investment in HBP ETFs, and (ii) in the Investment Strategy section of the prospectus, the fact that the Fund has obtained relief that permits it to invest in commodity pools that use financial instruments that correlate to a multiple (or inverse multiple) of the performance of an Underlying Index; and

(f) a Fund will not invest in an HBP ETF with an Underlying Index based, directly or indirectly through a specified derivative or otherwise, on a physical commodity other than gold.

“Rhonda Goldberg”

Rhonda Goldberg

Manager, Investment Funds

ONTARIO SECURITIES COMMISSION

SEDAR # 1337855, 1337856, 1360149

Schedule A

HBP ETFs

Horizons BetaPro S&P/TSX 60® Bull Plus ETF

Horizons BetaPro S&P/TSX 60® Bear Plus ETF

Horizons BetaPro S&P/TSX® Global Mining Bull Plus ETF

Horizons BetaPro S&P/TSX® Global Mining Bear Plus ETF

Horizons BetaPro COMEX® Gold Bullion Bull Plus ETF

Horizons BetaPro COMEX® Gold Bullion Bear Plus ETF

Horizons BetaPro S&P/TSX® Capped Financials Bull Plus ETF

Horizons BetaPro S&P/TSX® Capped Financials Bear Plus ETF

Horizons BetaPro S&P/TSX® Capped Energy Bull Plus ETF

Horizons BetaPro S&P/TSX® Capped Energy Bear Plus ETF

Horizons BetaPro S&P/TSX® Global Gold Bull Plus ETF

Horizons BetaPro S&P/TSX® Global Gold Bear Plus ETF

Horizons BetaPro S&P 500® Bull Plus ETF

Horizons BetaPro S&P 500® Bear Plus ETF

Horizons BetaPro NASDAQ-100® Bull Plus ETF

Horizons BetaPro NASDAQ-100® Bear Plus ETF

Horizons BetaPro MSCI Emerging Markets Bull Plus ETF

Horizons BetaPro MSCI Emerging Markets Bear Plus ETF

Horizons BetaPro US Dollar Bull Plus ETF

Horizons BetaPro US Dollar Bear Plus ETF

Horizons BetaPro US 30-year Bond Bull Plus ETF

Horizons BetaPro US 30-year Bond Bear Plus ETF

Headnote

National Policy 11-203 Process for Exemptive Relief Applications in Multiple Jurisdictions - Relief granted to from paragraph 2.5(2)(a) of National Instrument 81-102 Mutual Funds to permit mutual funds to invest up to 10% of net assets in exchange-traded commodity pools that correlate to a multiple (or inverse multiple) of the performance of an underlying index, which are not subject to National Instrument 81-101 Mutual Fund Prospectus Disclosure, and qualified for sale using a long form prospectus, subject to certain conditions.

Applicable Legislative Provisions

National Instrument 81-102 Mutual Funds, paragraph 2.5(2)(a) and section 19.1.