The Securities Commission granted an exemption to a global fixed income fund, allowing it to invest beyond the standard 10% net asset value limit in debt securities issued or guaranteed by foreign governments or supranational agencies. This exemption is subject to several conditions and is based on the fund’s investment strategy, which focuses on sustainable and responsible issuers, integrating Environmental, Social, and Governance (ESG) factors.
The fund, managed by Mackenzie Financial Corporation, can now invest up to 20% of its net assets in AA-rated foreign government securities and up to 35% in AAA-rated ones. These investments must be consistent with the fund’s objectives and made in mature and liquid markets. The fund’s prospectus must disclose the associated risks and summarize the nature and terms of the exemption.
This decision is supported by National Instrument 81-102 Investment Funds, specifically subsections 2.1(1) and 19.1, and is contingent on the fund not combining the two investment thresholds for a single issuer. The exemption aims to enable the fund to better achieve its investment objectives while informing investors of the potential risks.