The Securities Commission granted the CI Auspice Alternative Diversified Corporate Class (Top Fund) several exemptions from National Instrument 81-102 Investment Funds (NI 81-102) and related regulations. These exemptions allow the Top Fund to:
1. Use Absolute Value at Risk (Absolute VaR) to measure leverage exposure, exceeding the standard 300% net asset value limit. This approach is deemed more appropriate for the Top Fund’s investment strategies, which involve a multi-asset approach and systematic risk management.
2. Include performance data from the Auspice Diversified Trust (Underlying Fund) in sales communications, even for periods before the Underlying Fund was a reporting issuer. This is to facilitate the Top Fund’s strategy to replicate the performance of the Underlying Fund.
3. Use the Underlying Fund’s past performance data to calculate the Top Fund’s risk rating and disclose this rating in its prospectus and fund facts.
4. Include the Underlying Fund’s past performance data in the Top Fund’s Management Reports of Fund Performance (MRFPs).
These exemptions are granted under the condition that the Top Fund will comply with the Absolute VaR test, disclose the maximum Absolute VaR allowed, and notify the OSC of any non-compliance. Additionally, any communications including past performance data must disclose that the data relates to the Underlying Fund and that the Top Fund has obtained the necessary exemptive relief.
The exemptions are based on the understanding that the Top Fund will invest substantially all of its assets in the Underlying Fund, and the Underlying Fund’s investment strategies, fees, and administration have not changed since it became a reporting issuer. The exemptions are set to expire on February 22, 2027.