The Ontario Securities Commission granted RBC Global Asset Management Inc. (the Filer) exemptive relief for the RBC QUBE Market Neutral World Equity Fund and RBC QUBE Market Neutral World Equity Fund (CAD Hedged) (collectively, the Funds). The relief allows the Funds to include past performance data in sales communications and other disclosures, even though this data pertains to periods before the Funds became reporting issuers and before they distributed securities under a simplified prospectus for 12 consecutive months.
Key Facts:
1. The Funds were established in 2015 and have only been distributed to qualified investors under prospectus exemptions.
2. The Filer plans to file a simplified prospectus to qualify the Funds for public distribution, making them reporting issuers.
3. The Funds will continue to be managed similarly to their pre-reporting issuer period, with no changes to their investment objectives, fees, or day-to-day administration.
Reasoning:
1. The Filer argued that the past performance data from the Funds’ inception is significant and meaningful for investors.
2. The inclusion of this data would not be misleading if accompanied by appropriate disclaimers.
3. The financial statements for the period before the Funds became reporting issuers will be made available on the Funds’ website and upon request.
Outcome:
The Commission granted the relief, allowing the Funds to use past performance data in their sales communications, fund facts documents, and management reports of fund performance (MRFPs). The decision is subject to conditions, including specific disclosures in any communications containing past performance data and the availability of financial statements on the Funds’ website.
Relevant Laws/Regulations:
– National Instrument 81-102 Investment Funds
– National Instrument 81-106 Investment Fund Continuous Disclosure
– National Policy 11-203 Process for Exemptive Relief Applications in Multiple Jurisdictions
– Multilateral Instrument 11-102 Passport System