The Ontario Securities Commission (OSC) granted Evolve Funds Group Inc. (the Filer) relief from the requirement to obtain unitholder approval for the reorganization of the High Interest Savings Account Fund (HISA) under National Instrument 81-102 Investment Funds (NI 81-102). The reorganization involves splitting HISA into two separate mutual fund trusts: a new mutual fund (New Mutual Fund) and the existing exchange-traded mutual fund (Existing ETF). This decision was made in response to regulatory changes and is deemed beneficial for unitholders.
Key facts include:
– The reorganization aims to improve yield for mutual fund unitholders.
– The tax impact on unitholders is expected to be minimal.
– Unitholders will be notified at least 60 days before the reorganization and can redeem their units if they choose.
The OSC’s decision is based on the conditions that the reorganization is approved by the Independent Review Committee (IRC) and that detailed notice is provided to unitholders. The applicable legislative provisions are sections 5.1(1)(f), 5.5(1)(b), and 19.1 of NI 81-102.