The Securities Commission has granted PenderFund Capital Management Ltd. (the Filer) an exemption for its managed funds (the Existing Funds and Future Funds) from certain requirements of National Instrument 81-102 Investment Funds (NI 81-102). The exemptions allow the funds to:
1. Deposit portfolio assets with a borrowing agent not serving as the fund’s custodian or sub-custodian in connection with short sales, subject to specific NAV percentage limits (Short Sale Collateral Relief).
2. Appoint more than one custodian, each qualified under NI 81-102, to enhance operational efficiency and reduce costs (Custodian Relief).
The exemptions are conditional upon compliance with other relevant subsections of NI 81-102, including reconciliation of portfolio assets and daily NAV calculations. The British Columbia Securities Commission is the principal regulator, and the decision also applies to Ontario. The exemptions aim to reduce operational complexities and costs for the funds while maintaining asset safety and regulatory compliance.