The Ontario Securities Commission granted Onex Canada Asset Management Inc. (the Filer) exemptive relief from certain restrictions under National Instrument 81-102 Investment Funds (NI 81-102) for its Onex Global Special Situations Alternative Fund and future alternative mutual funds. The relief allows these funds to:
1. Sell securities short and borrow cash up to a combined total of 100% of the fund’s net asset value (NAV), exceeding the usual 50% limit.
2. Exceed the 10% issuer concentration limit for short sales of index participation units (IPUs), allowing short sales up to 100% of the fund’s NAV.
The decision is based on the Filer’s representations that these strategies will provide cost savings, better risk management, and more efficient portfolio management. The funds must still comply with the overall 300% aggregate exposure limit for borrowing, short selling, and derivatives. The funds’ prospectuses will disclose these strategies and associated risks. The relief is granted under National Policy 11-203 and Multilateral Instrument 11-102.