The Securities Commission has granted an exemption to Desjardins Investments Inc. (the Filer) on behalf of the Alternative Funds, allowing them to consolidate the simplified prospectus (SP) of an alternative mutual fund with the SP of a conventional mutual fund. This decision is based on the provisions of National Instrument 81-101 Mutual Fund Prospectus Disclosure, particularly sections 5.1(4) and 6.1(1).
The Filer, a corporation registered as an investment fund manager in Quebec, Ontario, and Newfoundland and Labrador, sought this exemption to reduce costs associated with renewing, printing, and distributing separate prospectuses for alternative and conventional mutual funds. The Filer argued that combining the SPs would streamline disclosure and facilitate distribution, as the alternative and conventional funds share many operational and administrative features.
The Commission agreed with the Filer’s position that the exemption would not be prejudicial to the public interest and would be in the best interests of the funds and their securityholders. The decision also noted that exchange-traded funds (ETFs) are already permitted to consolidate prospectuses for alternative and conventional funds under Regulation 41-101, suggesting mutual funds should be treated similarly.
As a result, the exemption was granted, allowing the Filer to file a combined SP for both alternative and conventional mutual funds, provided that investors continue to receive the appropriate fund facts documents and that the SP and annual information form (AIF) are available upon request, in line with applicable securities legislation.