The Securities Commission has granted an application by CI Investments Inc. for exemption from the concentration restriction in subsection 2.1(1) of National Instrument 81-102 Investment Funds (NI 81-102). This exemption allows the specified funds to invest a larger portion of their net assets in debt securities issued or guaranteed by foreign governments or supranational agencies, subject to certain conditions. Specifically, the funds may invest up to 20% of net assets in AA-rated securities and up to 35% in AAA-rated securities of any one issuer, beyond the standard 10% limit.
The decision includes revoking previous similar exemptions granted to certain funds and is contingent on the funds’ investment objectives allowing for a majority investment in fixed income securities, including those of foreign governments. The funds must also disclose the associated risks and the terms of the exemption in their prospectus.
The exemption is based on the belief that it will provide the funds with more flexibility and favorable prospects, aligning with their fundamental investment objectives and benefiting investors. The decision is supported by the funds’ compliance with securities legislation and their prospectus disclosure requirements.
The Ontario Securities Commission is the principal regulator, and the decision was made under the Process for Exemptive Relief Applications in Multiple Jurisdictions, with reliance on subsection 4.7(1) of Multilateral Instrument 11-102 Passport System for other Canadian jurisdictions.