The Securities Commission granted an exemption to a new alternative mutual fund, allowing it to include past performance data from a period when its securities were offered on a prospectus-exempt basis in its sales communications, simplified prospectus, fund facts document, and management reports of fund performance. This decision was based on the fund having substantially the same investment objectives and fee structure as during the prospectus-exempt period.
The exemption was granted under specific sections of National Instrument 81-102 Investment Funds, National Instrument 81-101 Mutual Fund Prospectus Disclosure, and National Instrument 81-106 Investment Fund Continuous Disclosure. The fund must disclose that it was not a reporting issuer during the period of past performance data, that expenses would have been higher if it had been a reporting issuer, and that the Filer obtained exemptive relief for this disclosure. Additionally, the fund’s financial statements since its inception must be posted on its website and made available upon request.
The outcome allows the fund to use its historical performance data to calculate its investment risk level and to include this data in its marketing and reporting materials, despite not having distributed securities under a simplified prospectus for 12 consecutive months.