The Securities Commission approved a change of manager for a group of exchange-traded mutual funds (Dynamic ETFs) from BlackRock Asset Management Canada Limited to 1832 Asset Management L.P., contingent on securityholder approval. This decision is governed by subsection 5.5(1)(a) of National Instrument 81-102 Investment Funds (NI 81-102), which requires regulatory approval for changes in fund management unless the new manager is an affiliate of the current one. The Dynamic ETFs are established under Ontario law and their units are listed on the Toronto Stock Exchange.
The change is part of a proposed transaction announced on September 8, 2021, where 1832 L.P. would assume duties currently held by BlackRock Canada. The costs associated with the transaction will be covered by the filers, not the funds or their unitholders. The transaction is not expected to affect the Dynamic ETFs’ business, operations, or affairs materially, nor their unitholders. The current service providers for the Dynamic ETFs will remain post-transaction, and the individual portfolio managers responsible for the funds’ performance will not change.
The approval is conditional on the prior approval of the Dynamic ETFs’ unitholders, which will be sought at a special meeting. The Independent Review Committee of the Dynamic ETFs has reviewed the change and recommended it as fair and reasonable. The decision is made in the interest of investor protection and is not prejudicial to the public interest.