Securities Law & Instruments

Headnote

MRRS Exemptive Relief Application-Extension of lapse date.

Statutes Cited

Securities Act, R.S.O. 1990, c. S.5, as am., ss. 62(5)

Rules Cited

National Policy 43-201 entitled: Mutual Reliance Review System for Prospectus andAIF's.

National Instrument 81-101 entitled: Mutual Fund Prospectus Disclosure.

National Instrument 81-102 entitled: Mutual Funds.

IN THE MATTER OF THE SECURITIES LEGISLATION OF BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN, MANITOBA, ONTARIO, QUÉBEC, NEW BRUNSWICK, NOVA SCOTIA, PRINCE EDWARD ISLAND, NEWFOUNDLAND, NORTHWEST TERRITORIES SECURITIES REGISTRIES, NUNAVUT SECURITIES REGISTRIES AND YUKON TERRITORY REGISTRAR OF SECURITIES AND IN THE M ATTER OF THE MUTUAL RELIANCE REVIEW SYSTEM FOR EXEMPTIVE RELIEF APPLICATIONS AND IN THE MATTER OF MUTUAL FUND SECURITIES OF

Industrial American Fund, Industrial Balanced Fund, Industrial Bond Fund, Industrial Dividend Growth Fund, Industrial Growth Fund, Industrial Horizon Fund, Industrial Pension Fund, Industrial Yield Advantage Fund, Industrial Cash Management Fund, Industrial Income Fund, Industrial Mortgage Securities Fund, Industrial Short-Term Fund, Cundill Canadian Balanced Fund, Cundill Canadian Security Fund, Cundill Global Balanced Fund, Cundill Recovery Fund, Cundill Value Fund, Ivy Canadian Fund, Ivy Enterprise Fund, Ivy Foreign Equity Fund, Ivy Growth and Income Fund, Ivy Mortgage Fund, Universal Americas Fund, Universal Canadian Balanced Fund, Universal Canadian Growth Fund, Universal Canadian Resource Fund, Universal European Opportunities Fund, Universal Far East Fund, Universal Future Fund, Universal International Stock Fund, Universal Japan Fund, Universal Precious Metals Fund, Universal Select Managers Fund, Universal U.S. Blue Chip Fund, Universal U.S. Emerging Growth Fund, Universal World Asset Allocation Fund, Universal World Balanced RRSP Fund, Universal World Emerging Growth Fund, Universal World Growth RRSP Fund, Universal World High Yield Fund, Universal World Income RRSP Fund, Universal World Real Estate Fund, Universal World Resource Fund, Universal World Science and Technology Fund, Universal World Tactical Bond Fund, Universal world Value Fund and Universal U.S. Money Market Fund.

MRRS DECISION DOCUMENT

WHEREAS the Canadian securities regulatory authority or regulator (the"Decision Maker") in each of the provinces and territories of British Columbia, Alberta,Saskatchewan, Manitoba, Ontario, Québec, New Brunswick, Nova Scotia, PrinceEdward Island, Newfoundland, Northwest Territories, Nunavut and Yukon Territory (the"Jurisdictions") has received an application (the "Application") from MackenzieFinancial Corporation (the "Manager"),Industrial American Fund, Industrial BalancedFund, Industrial Bond Fund, Industrial Dividend Growth Fund, Industrial Growth Fund,Industrial Horizon Fund, Industrial Pension Fund, Industrial Yield Advantage Fund,Industrial Cash Management Fund, Industrial Income Fund, Industrial MortgageSecurities Fund, Industrial Short-Term Fund, Cundill Canadian Balanced Fund, CundillCanadian Security Fund, Cundill Global Balanced Fund, Cundill Recovery Fund,Cundill Value Fund, Ivy Canadian Fund, Ivy Enterprise Fund, Ivy Foreign Equity Fund,Ivy Growth and Income Fund, Ivy Mortgage Fund, Universal Americas Fund, UniversalCanadian Balanced Fund, Universal Canadian Growth Fund, Universal CanadianResource Fund, Universal European Opportunities Fund, Universal Far East Fund,Universal Future Fund, Universal International Stock Fund, Universal Japan Fund,Universal Precious Metals Fund, Universal Select Managers Fund, Universal U.S. BlueChip Fund, Universal U.S. Emerging Growth Fund, Universal World Asset AllocationFund, Universal World Balanced RRSP Fund, Universal World Emerging Growth Fund,Universal World Growth RRSP Fund, Universal World High Yield Fund, UniversalWorld Income RRSP Fund, Universal World Real Estate Fund, Universal WorldResource Fund, Universal World Science and Technology Fund, Universal WorldTactical Bond Fund, Universal world Value Fund and Universal U.S. Money MarketFund. (together, the "Funds") for a decision pursuant to the securities legislation of theJurisdictions (the "Legislation") that the time limits pertaining to the distribution ofsecurities under the simplified prospectus and annual information form (the"Prospectus") of the Funds be extended to those time limits that would be applicable ifthe lapse date of the Prospectus was December 19, 2000.

AND WHEREAS pursuant to the Mutual Reliance Review System for ExemptiveRelief Applications (the "System"), the Ontario Securities Commission is the principalregulator for this application;

AND WHEREAS it has been represented by the Manager to the DecisionMakers that:

(a) The Manager is a corporation incorporated under the laws of Canada. TheManager is the manager and promoter of the Funds. The Funds are open-endedmutual funds established by the Manager under the laws of Ontario.

(b) The Funds are reporting issuers under the Legislation and are not in default ofany requirements of the Legislation or the Regulations made thereunder.

(c) The Funds are presently offered for sale on a continuous basis in each of theJurisdictions through the Prospectus.

(d) Pursuant to the Legislation, the earliest lapse date (the "Lapse Date") fordistribution of securities of the Funds is October 19, 2000.

(e) Since the date of the Prospectus, there have been three amendments: (i)Amendment No. 1 dated April 1, 2000 amended the Prospectus to provide thatMackenzie Financial Corporation and Cundill Funds Inc. amalgamated. Theamalgamated company, continuing under the name of Mackenzie FinancialCorporation, is now the manager of the Cundill Funds; (b) Amendment No. 2dated August 18, 2000 amended the investment objective of Cundill RecoveryFund; and (iii) Amendment No. 3 provided for the proposed fund mergers ofIndustrial American Fund into Universal U.S. Blue Chip Fund, and IndustrialMortgage Securities Fund into Industrial Yield Advantage Fund which is to berenamed Mackenzie Yield Advantage Fund (a unitholder meeting asking for theapproval of the mergers is scheduled to be held on October 17, 2000. Ifapproved, the mergers will take effect on or about November 6, 2000). TheProspectus (as amended) represents up to date information regarding each ofthe Funds offered therein.

(f) Pro forma simplified prospectuses and annual information forms for the Fundswere filed with the Jurisdictions on September 11, 2000 under Sedar projectnumbers 297064 and 297091.

(g) The Manager requires additional time for the assembling of further information.In addition, the Manager has experienced several technical computer difficultiestrying to integrate the charts required in the past performance section of thesimplified prospectuses into the pro forma simplified prospectuses for the Fundswhich are text only documents. These problems have caused delays and placedan additional strain on the final filing process.

AND WHEREAS pursuant to the System this MRRS Decision Documentevidences the decision of each Decision Maker (collectively, the "Decision");

AND WHEREAS each of the Decision Makers are satisfied that the testcontained in the Legislation that provides the Decision Maker with the jurisdiction tomake the Decision has been met;

The Decision of the Decision Makers pursuant to the Legislation is that the timelimits provided by Legislation as they apply to a distribution of securities under aprospectus are hereby extended to the time limits that would be applicable if the LapseDate for the distribution of securities under the Prospectus of the Funds was December19, 2000.

October 19th, 2000.

"Paul Dempsey"