The Securities Commission granted an exemption to I.G. Investment Management Inc. and related entities (collectively, the Filers) from certain provisions of the Securities Act (Ontario) that restrict mutual funds from investing in issuers where a substantial securityholder has a significant interest. The exemption allows mutual funds managed by the Filers to invest up to 10% of their net assets in a closed-end pooled fund (Northleaf Capital Opportunities or other Northleaf Funds) even if a substantial securityholder of the Filers acquires a significant interest in the fund.
The exemption is subject to conditions, including that the investment must align with the mutual fund’s objectives and strategies, and the fund’s independent review committee (IRC) must approve the transaction. Additionally, the Filers must comply with certain sections of National Instrument 81-107 regarding the IRC’s role and must report annually on investments made under this relief.
The decision was based on representations that the Filers and the mutual funds are in compliance with securities legislation, have implemented information barriers, and that the investments in Northleaf Funds would be considered illiquid assets under National Instrument 81-102.
The exemption was granted under the Ontario Securities Act, sections 111(2)(c)(ii), 111(4), 113, 117(1)1, 117(1)4, and 117(2), and is contingent upon ongoing compliance with the specified conditions.