Canada Life Investment Management Ltd., 2021 CanLII 29300

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 CANADA LIFE INVESTMENT MANAGEMENT LTD. (the Filer)

AND CANADA LIFE NORTH AMERICAN SPECIALTY FUND, CANADA LIFE CANADIAN DIVIDEND FUND (LAKETON), CANADA LIFE CANADIAN VALUE FUND (FGP), CANADA LIFE CANADIAN EQUITY FUND (BEUTEL GOODMAN), CANADA LIFE CANADIAN LOW VOLATILITY FUND (LONDON CAPITAL) (collectively, the Funds)

April 14, 2021

Decision

Background

The principal regulator in the Jurisdiction has received an application from the Filer on behalf of the Funds for a decision under the securities legislation of the Jurisdiction (the Legislation) that the time limits for the renewal of the simplified prospectus of the Funds dated May 15, 2020 be extended to those time limits that would apply as if the lapse date was August 14, 2021 (the Requested Relief).

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 intended to be relied upon in each of the other provinces and territories of Canada (together with Ontario, 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.

Representations

This decision is based on the following facts represented by the Filer:

1. The head office of the Filer is located in London, Ontario. The Filer is a corporation governed under the laws of Canada. The Filer is a wholly-owned subsidiary of The Canada Life Assurance Company.
2. The Filer is registered as a portfolio manager in each province and territory of Canada and as an investment fund manager in each of Ontario, Québec and Newfoundland and Labrador. The Filer is registered as a commodity trading manager in Ontario.
3. Each of the Funds and each of the funds listed in Schedule A (the Other Funds) is a reporting issuer in the Jurisdictions.
4. Neither the Filer, nor any of the Funds or the Other Funds, are in default of securities legislation in any of the Jurisdictions.
5. The Filer is the manager and trustee of the Funds. The Filer is also the manager and trustee of the Other Funds listed in Schedule A.
6. Each Fund currently distributes its securities in the Jurisdictions pursuant to a simplified prospectus dated May 15, 2020, as amended by amendment no. 1 dated August 14, 2020 and amendment no. 2 dated January 4, 2021, and an annual information form dated May 15, 2020, as amended by amendment no. 1 dated August 14, 2020 and amendment no. 2 dated January 4, 2021 (collectively, the Current Prospectus). Each of the Other Funds currently distributes its securities in the Jurisdictions pursuant to the simplified prospectuses and annual information forms set forth in Schedule A.
7. The lapse date of the Current Prospectus under the Legislation is May 15, 2021 (the Current Lapse Date). Accordingly, under the Legislation, the distribution of securities of the Funds would have to cease on the Current Lapse Date unless: (i) the Funds file a pro forma simplified prospectus at least 30 days prior to the Current Lapse Date; (ii) the final simplified prospectus is filed no later than 10 days after the Current Lapse Date; and (iii) a receipt for the final simplified prospectus is obtained within 20 days after the Current Lapse Date.
8. The respective lapse dates of the current prospectuses of the Other Funds under the Legislation are August 14, 2021 and October 21, 2021.
9. The Filer wishes to combine the simplified prospectuses of the Other Funds with the Current Prospectus of the Funds in order to reduce renewal, printing and related costs of the Funds and the Other Funds. Offering the Funds and the Other Funds under one prospectus would facilitate the distribution of the Funds in the Jurisdictions under the same simplified prospectus and enable the Filer to streamline disclosure across the Filer’s fund platform. As the Funds and the Other Funds are managed by the Filer, offering them under the same simplified prospectus would allow investors to more easily compare the features of the Funds.
10. In connection with the integration of the Other Funds, the simplified prospectus, annual information form and several fund facts documents require review and updating. Given the time required to perform these tasks accurately, the Filer would not have sufficient time to finalize and file the pro forma simplified prospectus and annual information form combining the Funds and the Other Funds as well as prepare and update the fund facts documents by at least 30 days prior to the Current Lapse Date.
11. It would be impractical to alter and modify all the dedicated systems, procedures and resources required to prepare the renewal simplified prospectuses, annual information forms and fund facts documents, as applicable (the Prospectus Documents) of the Other Funds, and unreasonable to incur the costs and expenses associated therewith, so that the Prospectus Documents of the Other Funds can be filed earlier with the Prospectus Documents of the Funds.
12. The Filer may make minor changes to the features of the Other Funds as part of the process of renewing the Other Funds’ Prospectus Documents in August 2021. The ability to file the Prospectus Documents of the Funds with those of the Other Funds will ensure that the Filer can make the operational and administrative features of the Funds and the Other Funds consistent with each other, if necessary.
13. There have been no material changes in the affairs of the Funds and the Other Funds since the date of the Current Prospectus and the date of the current prospectuses of the Other Funds, as amended, as applicable. Accordingly, the Current Prospectus, the current prospectuses of the Other Funds and the fund facts documents represent the current information of the Funds and Other Funds, as applicable.
14. Given the disclosure obligation of the Funds and the Other Funds, should any material changes occur, the Current Prospectus of the Funds and the current prospectuses of the Other Funds will be amended as required under the Legislation.
15. New investors of the Funds or of the Other Funds will receive delivery of the most recently filed fund facts document of the Funds or of the Other Funds, as applicable. The Current Prospectus of the Funds and the current prospectuses of the Other Funds will still be available upon request.
16. The Requested Relief will not affect the accuracy of the information contained in the Current Prospectus of the Funds and the current prospectus of the Other Funds and therefore will not be prejudicial to the public interest.

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 Requested Relief is granted.

"Darren McKall"

Darren McKall Manager, Investment Funds and Structured Products Ontario Securities Commission

App. No. 2021/0192

SCHEDULE A

THE OTHER FUNDS

other funds with AUGUST 14, 2021 lapse date:

AMENDED AND RESTATED SIMPLIFIED PROSPECTUS DATED JANUARY 4, 2021, AMENDING AND RESTATING THE SIMPLIFIED PROSPECTUS DATED AUGUST 14, 2020, AS AMENDED BY AMENDMENT NO. 1 DATED SEPTEMBER 25, 2020

Folio Funds

Canada Life Diversified Fixed Income Folio Fund Canada Life Conservative Folio Fund Canada Life Moderate Folio Fund Canada Life Balanced Folio Fund Canada Life Advanced Folio Fund Canada Life Aggressive Folio Fund

Fixed Income Funds

Canada Life Money Market Fund Canada Life Short Term Bond Fund (Portico) Canada Life Core Bond Fund (Portico) Canada Life Core Plus Bond Fund (Portico) Canada Life Tactical Bond Fund (Portico) Canada Life Corporate Bond Fund (Portico) Canada Life North American High Yield Bond Fund Canada Life Unconstrained Fixed Income Fund Canada Life Global Multi-Sector Bond Fund (T. Rowe Price)

Balanced Funds

Canada Life Income Fund (Portico) Canada Life Canadian Fixed Income Balanced Fund Canada Life Monthly Income Fund (London Capital) Canada Life Global Monthly Income Fund (London Capital) Canada Life Growth and Income Fund (GWLIM) Canada Life Canadian Balanced Fund Canada Life Equity/Bond Fund (GLC) Canada Life Balanced Fund (Beutel Goodman) Canada Life Global Value Balanced Fund (Beutel Goodman) Canada Life Global Focused Growth Balanced Fund Canada Life Global Growth Balanced Fund (T. Rowe Price)

Canadian Equity Funds

Canada Life Dividend Fund (GWLIM) Canada Life Canadian Equity Fund (Laketon) Canada Life Canadian Growth Fund (GWLIM) Canada Life Mid Cap Canada Fund (GWLIM)

US Equity Funds

Canada Life US Low Volatility Fund (Putnam) Canada Life US Dividend Fund (GWLIM) Canada Life US Value Fund (Putnam) Canada Life American Equity Fund (Beutel Goodman) Canada Life US Equity Fund (London Capital) Canada Life US Mid Cap Opportunities Fund

Global and Regional Equity Funds

Canada Life Global Low Volatility Fund (ILIM) Canada Life Global Dividend Equity Fund (Setanta) Canada Life Global All Cap Equity Fund (Setanta) Canada Life Global Founders Fund (Beutel Goodman) Canada Life Global Growth Equity Fund (T. Rowe Price) Canada Life International Core Equity Fund (JPMorgan) Canada Life International Opportunity Fund (JPMorgan) Canada Life Global Small-Mid Cap Growth Fund

Sector Funds

Canada Life Global Infrastructure Equity Fund (London Capital) Canada Life Global Real Estate Fund (London Capital) Canada Life Science & Technology Fund (London Capital)

other funds with oCTOBER 21, 2021 lapse date:

SIMPLIFIED PROSPECTUS DATED October 21, 2020, AS AMENDED BY AMENDMENT NO. 1 DATED JANUARY 4 2021

Canada Life Risk-Managed Conservative Income Portfolio Canada Life Risk-Managed Balanced Portfolio Canada Life Risk-Managed Growth Portfolio Canada Life Risk Reduction Pool Canada Life Pathways Money Market Fund Canada Life Pathways Core Bond Fund Canada Life Pathways Core Plus Bond Fund Canada Life Pathways Global Core Plus Bond Fund Canada Life Pathways Global Multi Sector Bond Fund Canada Life Pathways Canadian Equity Fund Canada Life Pathways Canadian Concentrated Equity Fund Canada Life Pathways US Equity Fund Canada Life Pathways US Concentrated Equity Fund Canada Life Pathways International Equity Fund Canada Life Pathways International Concentrated Equity Fund Canada Life Pathways Emerging Markets Large Cap Equity Fund Canada Life Pathways Emerging Markets Equity Fund Canada Life Pathways Global Tactical Fund