The Securities Commission granted an exemption to a fund from certain requirements under National Instruments 81-102, 81-101, and 81-106, allowing the fund to include past performance data in sales communications and regulatory documents, even though this data pertains to a period before the fund was a reporting issuer. The exemption was granted on the condition that the fund did not materially deviate from investment restrictions and practices of NI 81-102 during the non-reporting period, and that its expenses were not significantly different from those of a reporting fund. The fund must disclose that the past performance data is from a non-reporting period and that expenses would have been higher if it had been a reporting issuer. Additionally, the fund must make its financial statements available for all periods for which it uses past performance data.
The fund also received relief from purchase and redemption restrictions to allow for consolidated monthly processing of orders, provided that this structure is described in the fund’s prospectus and fund facts documents.
Furthermore, the fund was exempted from short selling and borrowing restrictions, allowing it to short sell securities and borrow cash up to 100% of its net asset value (NAV), rather than the standard 50% limit. This is subject to the overall leverage limit of 300% of the fund’s NAV and provided that the fund complies with other applicable requirements and discloses the material terms of the relief to investors.
Lastly, the fund obtained an exemption from custodial requirements for short sale collateral, permitting it to deposit portfolio assets with a single borrowing agent that is not the fund’s custodian or sub-custodian, under certain conditions.
The exemptions are contingent upon the fund’s adherence to specific disclosure and operational conditions outlined by the Securities Commission, ensuring that the fund’s practices remain transparent and in the best interests of investors.