Desjardins Investment Management Inc. - MRRS Decision

Headnote

Mutual Reliance Review System for ExemptiveRelief Applications - Extension of lapse date for mutual fundprospectus to allow for completion of fund mergers.

Statutes Cited

Securities Act (Ontario), R.S.O. 1990 c. S.5,as amended, ss. 62(1), 62(2) and 62(5).

IN THE MATTER OF

THE SECURITIES LEGISLATIONOF

QUEBEC, ONTARIO, BRITISH COLUMBIA,ALBERTA,

SASKATCHEWAN, MANITOBA, NEWBRUNSWICK, NOVA SCOTIA,

PRINCE EDWARD ISLAND AND NEWFOUNDLANDAND LABRADOR

AND

IN THE MATTER OF

THE MUTUAL RELIANCE REVIEWSYSTEM

FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

DESJARDINS MONEY MARKET FUND

DESJARDINS MORTGAGE FUND

DESJARDINS BOND FUND

DESJARDINS BALANCED FUND

DESJARDINS QUEBEC FUND (A-Classand T-Class Units)

DESJARDINS WORLDWIDE BALANCEDFUND

DESJARDINS DIVERSIFIED SECUREFUND

DESJARDINS DIVERSIFIED MODERATEFUND

DESJARDINS DIVERSIFIED AUDACIOUSFUND

DESJARDINS DIVERSIFIED AMBITIOUSFUND

DESJARDINS SELECT BALANCEDFUND

DESJARDINS ETHICAL INCOMEFUND

DESJARDINS ETHICAL BALANCEDFUND

DESJARDINS DIVIDEND FUND (A-Classand T-Class Units)

DESJARDINS CANADIAN EQUITYVALUE FUND

DESJARDINS EQUITY FUND

DESJARDINS ENVIRONMENT FUND

DESJARDINS GROWTH FUND

DESJARDINS HIGH POTENTIALSECTORS FUND

DESJARDINS SELECT CANADIANFUND

DESJARDINS AMERICAN MARKETFUND

DESJARDINS INTERNATIONAL FUND

DESJARDINS INTERNATIONAL RSPFUND

DESJARDINS EUROPE FUND

DESJARDINS ASIA/PACIFIC FUND

DESJARDINS GLOBAL SCIENCEAND TECHNOLOGY FUND

DESJARDINS SELECT AMERICANFUND

DESJARDINS SELECT GLOBAL FUND

DESJARDINS ETHICAL NORTH AMERICANFUND

MRRS DECISION DOCUMENT

WHEREAS the Canadian securities regulatoryauthority or regulator (the "Decision Maker") in eachof the Provinces of Québec, Ontario, British Columbia,Alberta, Saskatchewan, Manitoba, , New Brunswick, Nova Scotia,Prince Edward Island, and Newfoundland (the "Jurisdictions")has received an application (the "Application") fromDesjardins Investment Management Inc. (the "Manager"),the manager of Desjardins Money Market Fund, the DesjardinsMortgage Fund, the Desjardins Bond Fund, the Desjardins BalancedFund, the Desjardins Quebec Fund (A-Class and T-Class Units),the Desjardins Diversified Secure Fund, the Desjardins DiversifiedModerate Fund, the Desjardins Diversified Audacious Fund, theDesjardins Diversified Ambitious Fund, the Desjardins SelectBalanced Fund, the Desjardins Ethical Income Fund, the DesjardinsEthical Balanced Fund, the Desjardins Worldwide Balanced Fund,the Desjardins Dividend Fund (A-Class and T-Class Units), theDesjardins Equity Fund, the Desjardins Environment Fund, theDesjardins Growth Fund, the Desjardins Canadian Equity ValueFund, the Desjardins High Potential Sectors Fund, the DesjardinsSelect Canadian Fund, the Desjardins American Market Fund, theDesjardins International Fund, the Desjardins InternationalRSP Fund, the Desjardins Europe Fund, the Desjardins Asia/PacificFund, the Desjardins Global Science and Technology Fund, theDesjardins Select American Fund, the Desjardins Select GlobalFund, and the Desjardins Ethical North American Fund (together,the "Funds") for a decision pursuant to the securitieslegislation of the Jurisdictions (the "Legislation")that the lapse date for the renewal of the simplified prospectusand annual information form of the securities of the Funds (the"Prospectus") be extended to those time limits thatwould be applicable if the lapse date of the Prospectus wasJanuary 16, 2004;

AND WHEREAS pursuant to the Mutual RelianceReview System for Exemptive Relief Applications (the "System"),the Commission des valeurs mobilières du Québecis the principal regulator for this application;

AND WHEREAS it has been represented bythe Manager to the Decision Makers that:

(a) The Manager is the manager of the Funds.

(b) The Funds are open-ended mutual fund trustsestablished by the Manager under the laws of Quebec.

(c) The Funds are reporting issuers underthe Legislation and are not in default of any requirementsof the Legislation or the regulations made thereunder.

(d) Pursuant to the Legislation or the regulationsmade thereunder, the earliest lapse date (the "LapseDate") for distribution of securities of the Funds isDecember 16, 2003.

(e) Since August 20, 2003, the date of AmendmentNo. 1 to the Prospectus, no material change has occurred andno amendments have been made to the Prospectus. Accordingly,the Prospectus, together with Amendment No. 1 thereto representsup to date information regarding each of the Funds offeredtherein. The extension requested will not affect the currencyor accuracy of the information contained in the Prospectusof the Funds and accordingly will not be prejudicial to thepublic interest.

(f) In order comply to Legislation and topermit the Manager sufficient time to finalize the renewalprospectus and obtain the requisite approvals of the Managerand the trustee of the Funds, the Trustee has requested anextension of the Lapse Date to January 16, 2004.

AND WHEREAS pursuant to the System thisMRRS Decision Document evidences the decision of each DecisionMaker (collectively, the "Decision");

AND WHEREAS each of the Decision Makersare satisfied that the test contained in the Legislation thatprovides the Decision Maker with the jurisdiction to make theDecision has been met;

THE DECISION of the Decision Makers pursuantto the Legislation is that the time limits provided by Legislationas they apply to a distribution of securities under a prospectusare hereby extended to the time limits that would be applicableif the Lapse Date for the distribution of securities under theProspectus of the Funds was January 16, 2004 and that the offeringof securities of the Funds may continue provided that:

(a) a final simplified prospectus and annualinformation form are filed no later than 10 days after January16, 2004 and receipts for the simplified prospectus and annualinformation form are obtained no later than 20 days afterJanuary 16, 2004;

October 14, 2003.

"Josée Deslauriers"