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 from periods when they were distributed on a prospectus-exempt basis in their sales communications, fund facts, and management reports of fund performance (MRFPs), despite not having distributed securities under a simplified prospectus for 12 consecutive months.
Key facts:
1. The Funds were established in 2015 and have 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 be managed similarly post-qualification, with no changes to investment objectives, fees, or administration.
Reasoning:
1. The past performance data is significant and meaningful for investors.
2. Appropriate disclaimers will be included to ensure the data is not misleading.
3. Financial statements for the period before the Funds became reporting issuers will be available on the Funds’ website and upon request.
Outcome:
The relief was granted with conditions that any sales communications, fund facts, and MRFPs containing past performance data from before the Funds became reporting issuers must disclose that:
1. The Funds were not reporting issuers during that period.
2. Expenses would have been higher if the Funds had been subject to reporting issuer regulations.
3. Exemptive relief was obtained to permit the disclosure.
4. Financial statements for the period are available on the Funds’ website and upon request.
Relevant laws and 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