Securities Law & Instruments

Headnote

Clause 213(3)(b) of the Loan and Trust Corporations Act -- application by manager for approval to act as trustee of a mutual fund trust.

Statutes Cited

Loan and Trust Corporations Act, R.S.O. 1990, c. L.25, as am., clause 213(3)(b).

July 30, 2004

McCarthy Tetrault LLP
Suite 4700
Toronto Dominion Bank Tower
Toronto, Ontario
M5K 1N2

Attention: Katherine Gurney

Dear Sirs/Mesdames:

Re:
Pro-Hedge Funds Inc. (the Applicant)
Application pursuant to clause 213(3)(b) of the Loan and Trust Corporations Act (Ontario) (the LTCA) for approval to act as trustee

Further to the application dated June 30, 2004, as supplemented by correspondence dated July 22, 2004 (collectively, the Application) filed on behalf of the Applicant, and based on the facts set out in the Application, pursuant to the authority conferred on the Ontario Securities Commission (the Commission) in clause 213(3)(b) of the LTCA, the Commission approves the proposal that the Applicant act as trustee of Pro-Hedge Capital Preservation Fund and of other pooled funds that may be established and managed by the Applicant, the securities of which will be offered pursuant to a prospectus exemption.

"Susan Wolburgh-Jenah"
"Paul K Bates"

June 25, 2004.

"Wendell S. Wigle"
"Robert W. Davis"