CI Investments Inc. (Re), 2026 CanLII 51408

June 1, 2026

(the Jurisdiction)

AND

(the Filer)

AND

Invesco Canadian Core Plus Bond ETF,

Invesco ESG Canadian Core Plus Bond ETF,

Invesco Global Bond ETF,

Invesco NASDAQ 100 Income Advantage ETF, and

Invesco S&P 500 Equal Weight Income Advantage ETF

(the Acquired Funds)

DECISION

Background

The principal regulator in the Jurisdiction has received an application from the Filer on behalf of the Acquired Funds and such other mutual funds that are, or will be, managed by the Filer, or an affiliate of the Filer, that are subject to the requirements of National Instrument 81-102 Investment Funds (NI 81-102), other than funds that are a money market fund (the CI Funds, and together with the Acquired Funds, the Funds, and individually, a Fund), for a decision under the securities legislation of the Jurisdiction of the principal regulator (the Legislation), pursuant to section 19.1 of NI 81-102, that exempts the Filer, or an affiliate of the Filer, and each Fund from paragraphs 2.8(1)(d) and 2.8(1)(f)(i) of NI 81-102 to permit each Fund when it:

(a) opens or maintains a long position in a debt-like security that has a component that is a long position in a forward contract or in a standardized future or forward contract; or

(b) enters into or maintains a swap position and during the periods when the Fund is entitled to receive payments under the swap;

to use as cover a right or obligation to sell an equivalent quantity of the underlying interest of the standardized future, forward or swap (the Exemption Sought).

Under National Policy 11-203 Process for Exemptive Relief Applications in Multiple Jurisdictions (for a passport application):

(a) the Ontario Securities Commission is the principal regulator (the Principal Regulator) for the application; and

(b) the Filer has provided notice that subsection 4.7(1) of Multilateral Instrument 11-102 Passport System (MI 11-102) is intended to be relied upon in all provinces and territories of Canada other than Ontario (together with Ontario, the Jurisdictions).

Interpretation

Terms defined in NI 81-102, 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:

The Filer

The Filer is a corporation subsisting under the laws of the Province of Ontario with its head office located in Toronto, Ontario.
The Filer is registered as follows:

(a) in each of the Jurisdictions as a portfolio manager and an exempt market dealer;

(b) in Ontario, Québec and Newfoundland and Labrador as an investment fund manager; and

The Filer, or an affiliate of the Filer, is, or will be, the investment fund manager of the Funds.
The Filer, operating under the business name CI Global Asset Management, became the investment fund manager, portfolio manager and trustee of the Acquired Funds when the rights to manage the Acquired Funds were transferred to the Filer by Invesco Canada Ltd. effective June 1, 2026.
The Filer is not in default of securities legislation in any of the Jurisdictions.

The Funds

Each Fund is, or will be:

(a) an open-end mutual fund established under the laws of the Province of Ontario;

(b) a reporting issuer under the securities laws of some or all of the Jurisdictions;

(d) not in default of securities legislation in any of the Jurisdictions.

The investment objectives and investment strategies of each Fund are set out in its prospectus.
In some cases, hedging of risk is permitted, including currency risks, whether the currency risk relates to income or equity securities or other securities.
As part of its investment strategies, a Fund may use specified derivatives in order to gain synthetic exposure to an issuer or class of issuers or to gain exposure to commodities.
When specified derivatives are used for non-hedging purposes, the Funds will be subject to the cover requirements of NI 81-102.
Paragraphs 2.8(1)(d) and 2.8(1)(f)(i) of NI 81-102 do not permit covering long positions in futures and forwards and long positions in swaps for a period when a fund is entitled to receive payments under the swap, in whole or in part, with a right or obligation to sell an equivalent quantity of the underlying interest of the future, forward or swap. In other words, those paragraphs of NI 81-102 do not permit the use of put options or short future, forward or swap positions to cover long future, forward or swap positions.
Regulatory regimes in other countries recognize the hedging properties of options for all categories of derivatives, including long positions evidenced by standardized futures or forwards or in respect of swaps where a fund is entitled to receive payments from the counterparty, provided they are covered by an amount equal to the difference between the market price of a derivative holding and the strike price of the option that was bought or sold to hedge that derivative position. NI 81-102 effectively imposes the requirement to overcollateralize, since the maximum liability to a fund under the scenario described is equal to the difference between the market value of the long derivative position and the exercise price of the option. Overcollateralization imposes a cost on a mutual fund.
Paragraph 2.8(1)(c) of NI 81-102 permits a mutual fund to write a put option and to cover it by holding a right or obligation to sell an equivalent quantity of the underlying interest of the written put option. This position has similar risks as a long position in a future, forward or swap. Therefore, the Filer submits that the Funds should be permitted to cover a long position in a future, forward or swap with a put option or a short future position.
The Filer has written policies and procedures relating to the use of derivatives by the Funds. The policies and procedures are reviewed annually by personnel in the Legal and Compliance departments. The Chief Compliance Officer of the Filer is responsible for maintaining the policies and procedures, oversight of the derivative strategies used by the Funds and monitoring and assessing compliance with all applicable legislation. The Chief Compliance Officer reports to the board of directors of the Filer on his compliance assessments. Limits and controls on the use of derivatives are part of the Filer's fund compliance regime and include reviews by analysts who ensure that the derivative positions of the Funds are within applicable policies.
The derivative contracts entered into by the Filer, an affiliate of the Filer or a sub-advisor on behalf of the Funds must be in accordance with the investment objectives and investment strategies of each of the Funds. The Filer, affiliates of the Filer and sub-advisors are also required to adhere to NI 81-102. The Filer, or an affiliate of the Filer, sets and reviews the investment policies of the Funds which also allow the trading in derivatives.
Without the Exemption Sought, the Funds will not have the flexibility to enhance yield and to manage more effectively their exposure under specified derivatives.

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 provided that:

use of the Exemption Sought is consistent with the fundamental investment objectives and investment strategies of each Fund;
the prospectus of each Fund and all subsequent renewals will disclose under the section entitled “Exemptions and Approvals”, the nature and terms of the Exemption Sought;
when each of the Funds enters into or maintains a swap position for periods when the Funds would be entitled to receive fixed payments under the swap, the Funds hold:

(a) cash cover in an amount that, together with margin on account for the swap and the market value of the swap, is not less than, on a daily mark-to-market basis, the underlying market exposure of the swap;

(b) a right or obligation to enter into an offsetting swap on an equivalent quantity and with an equivalent term and cash cover that, together with margin on account for the position, is not less than the aggregate amount, if any, of the obligations of the fund under the swap less the obligation of the Funds under such offsetting swap; or

(c) a combination of the positions referred to in subparagraph (a) and (b) that is sufficient, without recourse to the other assets of the Fund to enable the Fund to satisfy its obligations under the swap;

when each of the Funds opens or maintains a long position in a debt-like security that has a component that is a long position in a forward contract, or in a standardized future or forward contract, the Fund holds:

(a) cash cover in an amount that, together with margin on account for the specified derivative and the market value of the specified derivative, is not less than, on a daily mark-to-market basis, the underlying market exposure of the specified derivative;

(b) a right or obligation to sell an equivalent quantity of the underlying interest of the future or forward contract, and cash cover that, together with margin on account for the position, is not less than the aggregate amount, if any, by which the market price of the future or forward contract exceeds the strike price of the right or obligation to sell the underlying interest; or

(c) a combination of the positions referred to in subparagraph (a) and (b) that is sufficient, without recourse to other assets of the Fund to enable the Fund to acquire the underlying interest of the future or forward contract;

the Funds will not:

(a) purchase a debt-like security that has an option component or an option; or

(b) purchase or write an option to cover any position under paragraph 2.8(1)(b), (c), (d), (e) and (f) of NI 81-102, if immediately after the purchase or writing of such option, more than 10% of the net assets of the Funds, taken at market value at the time of the transaction, would be made up of (A) purchased debt-like securities that have an option component or purchased options, in each case, held by the Fund for purposes other than hedging, or (B) options used to cover any positions under paragraph 2.8(1)(b), (c), (d), (e) and (f) of NI 81-102; and

this decision with respect to the Exemption Sought will terminate on the coming into force of any securities legislation relating to the use as cover of a right or obligation to sell an equivalent quantity of the underlying interest of the standardized future, forward or swap in compliance with section 2.8 of NI 81-102.

“Darren McKall”

Darren McKall, Associate Vice President Investment Management Division Ontario Securities Commission

Application No. 2026-197

SEDAR+ No. 6428785