Headnote National Policy 11-203 Process for Exemptive Relief Applications in Multiple Jurisdictions – Mutual fund granted relief from preparing and filing interim management report of fund performance – Fund was operating for a short period - Manager is the sole unitholder.
Applicable Legislative Provisions
National Instrument 81-106 Investment Fund Continuous Disclosure, section 4.2
April 26, 2011
IN THE MATTER OF
THE SECURITIES LEGISLATION OF ONTARIO
(the Jurisdiction)
AND
IN THE MATTER OF
THE PROCESS FOR EXEMPTIVE RELIEF APPLICATIONS IN MULTIPLE JURISDICTIONS
AND
IN THE MATTER OF
CIBC ASSET MANAGEMENT INC.
(the Filer)
AND
FRONTIERS U.S. EQUITY CURRENCY NEUTRAL POOL
(the Pool)
DECISION
Background
The principal regulator in the Jurisdiction has received an application from the Filer on behalf of the Pool for a decision under the securities legislation of the Jurisdiction of the principal regulator (the Legislation) for an exemption, pursuant to section 17.1 of National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81-106) from the requirement contained in section 4.2 of NI 81-106 to prepare and file a management report of fund performance (MRFP) for the interim period ended February 28, 2011 (the Exemption Sought).
Under the Process for Exemptive Relief Applications in Multiple Jurisdictions (for a passport application):
(a) the Ontario Securities Commission is the principal regulator for this application; and
(b) the Filer has provided notice that section 4.7(1) of Multilateral Instrument 11-102 Passport System (MI 11-102) is to be relied upon in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Yukon, Northwest Territories and Nunavut (the Passport Jurisdictions)
(The Jurisdiction and the Passport Jurisdictions are collectively, the Jurisdictions).
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 in this decision.
Representations
This decision is based on the following facts represented by the Filer:
The Filer is a corporation incorporated under the laws of Canada and has its head office in Toronto, Ontario.
The Filer is the manager and trustee of the Pool.
The Pool is an open-ended mutual fund trust established and organized under the laws of the Province of Ontario on December 1, 2010 pursuant to an amended and restated master declaration of trust dated as of August 30, 2010.
The Pool became a reporting issuer on December 9, 2010, following the issuance of a receipt by the Principal Regulator for the final simplified prospectus and annual information form of the Pool dated December 8, 2010.
None of the Pool or the Filer is in default of the securities legislation in any of the Jurisdictions.
The Pool has a fiscal year end as of August 31. The initial interim period end for the Pool is February 28, 2011.
No units, other than for seed capital purposes, were issued as of February 28, 2011.
As of February 28, 2011, the Filer was the sole unitholder in the Pool.
The Pool is a fund-of-fund product that invests in an underlying fund managed by the Filer and attempts to reduce its currency exposure to non-Canadian dollar currencies by implementing a currency hedging strategy. The seed capital money was invested in accordance with the investment objective of the Pool on January 12, 2011.
In the absence of the Exemption Sought, the Pool would be required to prepare and file in the Jurisdictions an MRFP for the interim period ended February 28, 2011 for each of the Jurisdictions.
The Filer will prepare and file the interim financial statements for the Pool for the period ended February 28, 2011 as required by NI 81-106.
The benefit of preparing and filing an MRFP for the Pool would be minimal given that no units, other than for seed capital purposes, were issued as of February 28, 2011 and the Filer is the sole unitholder in the Pool.
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.
“Darren McKall”
Darren McKall
Manager, Investment Funds Branch
Ontario Securities Commission