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Connor Clark & Lunn Investment Management Ltd. et al. - s. 147
Headnote
Exemption for pooled funds from the requirement to file with the Commission interim financial statements under section 77(2) of the Act and comparative financial statements under section 78(1) of the Act, subject to conditions.
Statutes Cited
Securities Act, R.S.O. 1990, c. S.5 as am., ss. 74(1).
National Instrument 13-101 -- System for Electronic Document Analysis and Retrieval (SEDAR), s. 2.1(1)1.
Regulations Cited
Regulation made under the Securities Act, R.R.O. Reg. 1015, as am.
IN THE MATTER OF
THE SECURITIES ACT (ONTARIO), R.S.O. 1990,
CHAPTER S.5 AS AMENDED (THE "ACT")
AND
IN THE MATTER OF
CONNOR CLARK & LUNN INVESTMENT MANAGEMENT LTD.,
CONNOR CLARK & LUNN ARROWSTREET CAPITAL LTD,
SCHEER, ROWLETT & ASSOCIATES INVESTMENT MANAGEMENT LTD.,
PRIVATE CAPITAL MANAGEMENT LIMITED, AND
BAKER GILMORE & ASSOCIATES INC.
AND
THE POOLED FUNDS SET OUT IN SCHEDULE I HERETO,
(The "Existing Pooled Funds")
ORDER
(Subsection 147 of the Act)
UPON the application (the "Application") of Connor Clark & Lunn Investment Management Ltd. ("CC&L"), Connor Clark & Lunn Arrowstreet Capital Ltd. ("CCLA"), Scheer, Rowlett & Associates Investment Management Ltd. ("SRA"), PCJ Investment Counsel Ltd. ("PCJ"), and Baker Gilmore & Associates Inc ("BGA"). (collectively, the "Managers"), the managers of the Existing Pooled Funds and other pooled funds established and managed by the Managers from time to time (collectively, the "Pooled Funds"), to the Ontario Securities Commission (the "Commission") for an order pursuant to subsection 147 of the Act exempting the Pooled Funds from filing with the Commission the interim and annual financial statements prescribed by sections 77(2) and 78(1), respectively, of the Act or in the case of CC&L Genesis Fund, agreed to be filed in connection with an order dated June 25, 1991 of the Ontario Securities Commission (the "Order");
AND UPON considering the Application and the recommendation of the staff of the Commission;
AND UPON the Managers having represented to the Commission that:
1. Each of CC&L and PCJ are incorporated under the laws of Ontario, SRA is incorporated under the laws of Saskatchewan. BGA is incorporated under the laws of Quebec and CC&L is incorporated under the laws of British Columbia and all of the Managers carry on business in Ontario.
2. Each of the Managers is, or will be, the manager of the Pooled Funds for which either the Manager or a company retained by the Manager is the adviser. All of the advisers, including CC&L, SRA, PCJ and BGA, are registered in Ontario as an advisor in the category of investment counsel, and portfolio manager.
3. The Pooled Funds are, or will be, open-end mutual fund trusts established under the laws of Ontario, or in the case of the CC&L Genesis Fund, have been filing financial statements pursuant to the Order. The Pooled Funds will not be reporting issuers in any province or territory of Canada. Units of the Pooled Funds are, or will be, distributed in each of the provinces and territories of Canada without a prospectus pursuant to exemptions from the prospectus delivery requirements of applicable securities legislation.
4. The Pooled Funds either fit within the definition of "mutual fund in Ontario" in section 1(1) of the Act and are thus required to file with the Commission interim financial statements under section 77(2) of the Act and comparative annual financial statements under section 78(1) of the Act or in the case of CC&L Genesis Fund agreed to file the financial statements pursuant to the Order (collectively, the "Financial Statements").
5. While the Pooled Funds are structured as mutual funds, they are not public mutual funds. The Pooled Funds are not reporting issuers and are not sold to the general public.
6. Unitholders of the Pooled Funds ("Unitholders") receive the Financial Statements for the Pooled Funds they hold. The Financial Statements are prepared and delivered to Unitholders in the form and for the periods required under the Act and the regulation or rules made thereunder (the "Regulation"). The Managers and the Pooled Funds may continue to rely on subsection 94.1 of the Regulation and will omit statements of portfolio transactions from the Financial Statements (such statements from which the statements of portfolio transactions have been omitted, the "Permitted Financial Statements").
7. As required by subsection 94(1) of the Regulation, the Permitted Financial Statements will contain a statement indicating that additional information as to portfolio transactions will be provided to a Unitholder without charge on request to a specified address and,
(a) the omitted information shall be sent promptly and without charge to each Unitholder that requests it in compliance with the indication; and
(b) where a person or company requests that such omitted information be sent routinely to the Unitholder, the request shall be carried out while the information continues to be omitted from the subsequent Financial Statements until the Unitholder requests, or agrees to, termination of the arrangement or is no longer a Unitholder.
8. Section 2.1(1)1 of National Instrument 13-101 - System for Electronic Document Analysis and Retrieval (SEDAR) ("Rule 13-101") requires that every issuer required to file a document under securities legislation make its filing through SEDAR. The Financial Statements filed with the Commission thus become publicly available.
AND UPON the Commission being satisfied that to do so would not be prejudicial to the public interest;
IT IS ORDERED by the Commission pursuant to subsection 147 of the Act that the Pooled Funds be exempted from the requirements in sections 77(2) and 78(1) of the Act or the requirements pursuant to the Order to file the Financial Statements with the Commission provided:
(a) In the absence of other regulatory relief, the Pooled Funds will prepare and deliver to the Unitholders, the Permitted Financial Statements, in the form and for the periods required under the Act and the Regulation;
(b) The Pooled Funds will retain the Financial Statements indefinitely;
(c) The Pooled Funds will provide the Financial Statements to the Commission or any member, employee or agent of the Commission immediately upon request of the Commission or any member, employee or agent of the Commission;
(d) The Pooled Funds will provide a list of the Pooled Funds relying on this Order to the Investment Funds Branch of the Commission on an annual basis;
(e) Unitholders will be notified that the Pooled Funds are exempted from the requirements in sections 77(2) and 78(1) of the Act to file the Financial Statements with the Commission;
(f) In all other aspects, the Pooled Funds will comply with the requirements in Ontario securities law for financial statements; and
(g) This decision, as it relates to the Commission, will terminate after the coming into force of any legislation or rule of the Commission dealing with the matters regulated by sections 77(2) and 78(1) of the Act.
February 6, 2004.
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"H. Lorne Morphy"
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"Robert W. Korthals"
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SCHEDULE I
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Name of Manager |
Name of Pooled Fund |
Jurisdiction of Establishment |
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Connor Clark & Lunn Arrowstreet Capital Ltd. |
CC&L Arrowstreet American Equity Fund |
Ontario |
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CC&L Arrowstreet EAFE Equity Fund |
Ontario |
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CC&L Arrowstreet Synthetic US Equity Fund |
Ontario |
|
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CC&L Arrowstreet Synthetic EAFE Fund |
Ontario |
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CC&L Arrowstreet US Equity Fund |
Ontario |
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Private Client US Equity Fund |
Ontario |
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Connor Clark & Lunn Investment Management Ltd. |
CC&L Genesis Fund |
BC |
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Scheer, Rowlett & Associates Investment Management Ltd. |
SRA/PCJ Canadian Equity Core Fund |
Ontario |
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Scheer, Rowlett & Associates Canadian Equity Fund |
Ontario |
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Scheer, Rowlett & Associates EAFE Fund |
Ontario |
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Scheer, Rowlett & Associates US Equity Fund |
Ontario |
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Scheer, Rowlett & Associates Bond Fund |
Ontario |
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Scheer, Rowlett & Associates Short Term Bond Fund |
Ontario |
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Scheer, Rowlett & Associates Balanced Fund |
Ontario |
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Scheer, Rowlett & Associates Money Market Fund |
Ontario |
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PCJ Investment Counsel Ltd. |
PCJ Canadian Equity Fund |
Ontario |
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PCJ Canadian Small Capitalization Fund |
Ontario |
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Baker Gilmore & Associates Inc. |
Baker Gilmore & Associates Bond Fund |
Ontario |