CI Explorer Fund et al. - MRRS Decision

Headnote

Mutual Reliance Review System for Exemptive Relief Application -- Exemptive relief granted to mutual funds allowing extension of prospectus lapse date, and extension of distribution beyond previous lapse date for certain funds until the effective date of the mergers of those funds. Cancellation rights for new investors who purchased after the previous lapse date imposed as a condition.

Applicable Statutory Provisions

Securities Act, R.S.O 1990, c. S.5, as am., s. 147.

June 22, 2006

IN THE MATTER OF

THE SECURITIES LEGISLATION OF

BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN,

MANITOBA, ONTARIO, QUÉBEC, NEW BRUNSWICK,

NOVA SCOTIA, PRINCE EDWARD ISLAND,

NEWFOUNDLAND AND LABRADOR, YUKON,

NORTHWEST TERRITORIES AND NUNAVUT

(the "Jurisdictions")

AND

IN THE MATTER OF

THE MUTUAL RELIANCE REVIEW SYSTEM

FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

CI EXPLORER FUND,

CI EXPLORER CORPORATE CLASS,

CI CANADIAN BOND FUND,

CI CANADIAN BOND CORPORATE CLASS,

CI LONG-TERM BOND FUND,

CI MONEY MARKET FUND,

CI SHORT-TERM BOND FUND,

CI SHORT-TERM CORPORATE CLASS,

CI SHORT-TERM US$ CORPORATE CLASS,

CI US MONEY MARKET FUND,

CI GLOBAL BOND FUND,

CI GLOBAL BOND CORPORATE CLASS,

CI MORTGAGE FUND,

SIGNATURE CORPORATE BOND FUND,

SIGNATURE CORPORATE BOND CORPORATE CLASS,

SIGNATURE HIGH INCOME FUND,

SIGNATURE HIGH INCOME CORPORATE CLASS,

CI CANADIAN ASSET ALLOCATION FUND,

CI GLOBAL BOOMERNOMICS® CORPORATE CLASS,

CI INTERNATIONAL BALANCED FUND,

CI INTERNATIONAL BALANCED CORPORATE CLASS,

HARBOUR GROWTH & INCOME FUND,

HARBOUR FOREIGN GROWTH & INCOME CORPORATE CLASS,

SIGNATURE CANADIAN BALANCED FUND,

SIGNATURE INCOME & GROWTH FUND,

SIGNATURE INCOME & GROWTH CORPORATE CLASS,

SYNERGY TACTICAL ASSET ALLOCATION FUND,

CI ALPINE GROWTH EQUITY FUND,

CI CANADIAN INVESTMENT FUND,

CI CANADIAN INVESTMENT CORPORATE CLASS,

CI CANADIAN SMALL/MID CAP FUND,

HARBOUR FUND,

HARBOUR CORPORATE CLASS,

SIGNATURE CANADIAN RESOURCE FUND,

SIGNATURE CANADIAN RESOURCE CORPORATE CLASS,

CI CAN-AM SMALL CAP CORPORATE CLASS,

SIGNATURE DIVIDEND FUND,

SIGNATURE DIVIDEND CORPORATE CLASS,

SIGNATURE SELECT CANADIAN FUND,

SIGNATURE SELECT CANADIAN CORPORATE CLASS,

SYNERGY CANADIAN CORPORATE CLASS, \

SYNERGY CANADIAN STYLE MANAGEMENT CORPORATE CLASS,

SYNERGY EXTREME CANADIAN EQUITY FUND,

CI AMERICAN EQUITY FUND,

CI AMERICAN EQUITY CORPORATE CLASS,

CI AMERICAN MANAGERS® CORPORATE CLASS,

CI AMERICAN SMALL COMPANIES FUND,

CI AMERICAN SMALL COMPANIES CORPORATE CLASS,

CI AMERICAN VALUE FUND,

CI AMERICAN VALUE CORPORATE CLASS,

CI VALUE TRUST CORPORATE CLASS,

SYNERGY AMERICAN FUND,

SYNERGY AMERICAN CORPORATE CLASS,

CI EMERGING MARKETS FUND,

CI EMERGING MARKETS CORPORATE CLASS,

CI EUROPEAN FUND,

CI EUROPEAN CORPORATE CLASS,

CI GLOBAL BIOTECHNOLOGY CORPORATE CLASS,

CI GLOBAL CONSUMER PRODUCTS CORPORATE CLASS,

CI GLOBAL ENERGY CORPORATE CLASS,

CI GLOBAL FINANCIAL SERVICES CORPORATE CLASS,

CI GLOBAL FUND,

CI GLOBAL CORPORATE CLASS,

CI GLOBAL SMALL COMPANIES FUND,

CI GLOBAL SMALL COMPANIES CORPORATE CLASS,

CI GLOBAL HEALTH SCIENCES CORPORATE CLASS,

CI GLOBAL MANAGERS® CORPORATE CLASS,

CI GLOBAL SCIENCE & TECHNOLOGY CORPORATE CLASS,

CI GLOBAL VALUE FUND,

CI GLOBAL VALUE CORPORATE CLASS,

CI INTERNATIONAL FUND,

CI INTERNATIONAL CORPORATE CLASS,

CI INTERNATIONAL VALUE FUND,

CI INTERNATIONAL VALUE CORPORATE CLASS,

CI JAPANESE CORPORATE CLASS,

CI PACIFIC FUND,

CI PACIFIC CORPORATE CLASS,

HARBOUR FOREIGN EQUITY CORPORATE CLASS,

SYNERGY EXTREME GLOBAL EQUITY FUND,

SYNERGY GLOBAL STYLE MANAGEMENT CORPORATE CLASS,

SYNERGY GLOBAL CORPORATE CLASS,

CI CANADIAN INCOME PORTFOLIO,

CI CANADIAN CONSERVATIVE PORTFOLIO,

CI CANADIAN BALANCED PORTFOLIO,

CI CANADIAN GROWTH PORTFOLIO,

CI CANADIAN MAXIMUM GROWTH PORTFOLIO,

CI GLOBAL CONSERVATIVE PORTFOLIO,

CI GLOBAL BALANCED PORTFOLIO,

CI GLOBAL GROWTH PORTFOLIO AND

CI GLOBAL MAXIMUM GROWTH PORTFOLIO

(the "Filers")

MRRS DECISION DOCUMENT

Background

The local securities regulatory authority or regulator (the "Decision Maker") in each of the Jurisdictions has received an application from CI Investments Inc. (the "Manager"), the manager of the Filers, for a decision under the securities legislation of the Jurisdictions (the "Legislation") for an exemption that the time limits pertaining to the distribution of securities under the simplified prospectus and annual information form dated June 20, 2005 of the Filers, as amended from time to time, (collectively, the "Prospectus") be extended to permit the continued distribution of securities of each Filer as if the lapse date for the Prospectus is July 31, 2006 (the "Requested Relief").

Under the Mutual Reliance Review System for Exemptive Relief Applications

(a) the Ontario Securities Commission is the principal regulator for this application, and

(b) this MRRS decision document evidences the decision of each Decision Maker.

Interpretation

Defined terms contained in National Instrument 14-101 Definitions have the same meaning in this decision unless they are defined in this decision.

Representations

This decision is based on the following facts represented by each Filer:

1. Each Filer distributes its securities in each of the Jurisdictions pursuant to the Prospectus. The earliest lapse date of the Prospectus under the Legislation was June 20, 2006.

2. Each Filer is a reporting issuer (or the equivalent) as defined in the Legislation and, except as described herein, is not in default of any of the requirements of such Legislation.

3. There have been no material changes in the affairs of any Filer since the filing of the Prospectus, other than those for which amendments have been filed. Accordingly, the Prospectus represents current information regarding each Filer.

4. The Filers have continued to distribute their securities in anticipation of the Requested Relief. Through inadvertence, the Prospectus lapsed prior to this decision.

5. On or about July 31, 2006, the Manager intends to merge each of CI Canadian Growth Portfolio, CI Canadian Maximum Growth Portfolio, CI Explorer Fund and CI Explorer Corporate Class (the "Terminating Funds") into other mutual funds managed by the Manager in order to rationalize the line-up of funds managed by the Manager and thereby eliminate duplicative funds and reduce carrying costs. Such mergers are hereinafter referred to as the "Mergers". The Terminating Funds issued a press release on May 29, 2006 and filed a material change report and amendments to the Prospectus announcing the proposed Mergers, as contemplated by sections 5.6(1)(g) and 5.10 of National Instrument 81-102 ("NI 81-102") of the Canadian securities administrators.

6. The Mergers will be effected in accordance with the requirements of NI 81-102 including, without limitation, obtaining the approval of securityholders of the Terminating Funds as contemplated by section 5.1(f) of NI 81-102 and the approval of the Decision Makers to the extent not already provided by section 5.6(1) of NI 81-102.

7. The financial year end of each Filer is March 31. As a result, each Filer is required to file its first annual management report of fund performance (the "First MRFP") by July 28, 2006.

8. In the absence of the Requested Relief, each Filer would have been required to either:

(a) file its First MRFP no later than June 30, 2006 which would have effectively precluded each Filer the opportunity to rely upon the transitional relief provided to other Canadian mutual funds in section 18.3 of National Instrument 81-106; or

(b) file its renewal prospectus no later than June 30, 2006 with Part B of its simplified prospectus still including the information prescribed by Items 8, 11 and 13 of Part B to Form 81-101F1 which may have been confusing to investors.

9. In the absence of the Requested Relief, investors who purchased securities of the Filers after June 20, 2006 and before the date of this decision would be entitled under the Legislation to cancel their purchases.

10. Furthermore, if the Requested Relief in respect of the Terminating Funds is not granted, the Filer will be required to file a renewal prospectus for the Terminating Funds, notwithstanding that the Terminating Funds will be terminated on or about the effective date of the Mergers. The financial costs and time involved in producing, filing and printing a prospectus for the Terminating Funds would be unduly costly. It may also cause confusion among investors who may assume that the Terminating Funds continue to be available for purchase after the effective date of the Mergers.

11. The Requested Relief will not affect the accuracy of the information in the Prospectus and therefore will not be prejudicial to the public interest.

Decision

Each of the Decision Makers is satisfied that the test contained in the Legislation that provides the Decision Maker with the jurisdiction to make the Decision has been met.

The decision of the Decision Makers under the Legislation is that the Requested Relief is granted provided that:

1. investors who purchased securities of the Filers after June 20, 2006 and before the date of this decision have the same rights against the Filers as would have been available to such investors under the Legislation, as referenced in the Prospectus under the heading "What are your legal rights?", had this decision been made prior to June 20, 2006.