Mutual Reliance Review System for Exemptive Relief Applications -- mutual funds granted relief from preparing annual management report of fund performance as only in existence for ten days prior to first fiscal year end.
Applicable Legislative Provisions
National Instrument 81-106 Investment Fund Continuous Disclosure, s. 4.2.
November 13, 2007
IN THE MATTER OF
THE SECURITIES LEGISLATION OF
BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN,
MANITOBA, ONTARIO, QUEBEC, NEW BRUNSWICK,
NOVA SCOTIA, NEWFOUNDLAND AND LABRADOR,
THE NORTHWEST TERRITORIES, YUKON
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM
FOR EXEMPTIVE RELIEF APPLICATIONS
IN THE MATTER OF
CIBC ASSET MANAGEMENT INC.
IN THE MATTER OF
RENAISSANCE OPTIMAL INCOME PORTFOLIO AND
RENAISSANCE GLOBAL INFRASTRUCTURE FUND
MRRS DECISION DOCUMENT
The local securities regulatory authority or regulator (the Decision Maker) in each of the Jurisdictions has received an application from the Filer, on behalf of the Funds for a decision under the securities legislation (the Legislation) of the Jurisdictions exempting the Funds from the requirement contained in section 4.2 of National Instrument 81-106 - Investment Funds Continuous Disclosure (NI 81-106) requiring an investment fund that is a reporting issuer to file a management report of fund performance (MRFP) from the period of its organization to August 31, 2007, as would otherwise be required pursuant to applicable Legislation (the Requested Relief).
Under the Mutual Reliance Review System (MRRS) for Exemption 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.
Defined terms contained in National Instrument 14-101 Definitions have the same meaning in this decision unless they are defined in this decision.
The decision is based on the following facts represented by the Filer:
1. The Filer is a corporation established under the laws of Ontario and is the manager and trustee of the Funds.
2. The Funds are open-ended mutual funds trusts established and organized under the laws of the Province of Ontario on August 15, 2007 pursuant to an amended and restated master declaration of trust dated as of June 27, 2006, as amended.
3. The Funds became reporting issuers on August 21, 2007, the date on which a receipt for the final simplified prospectus and annual information form dated August 20, 2007 (the Prospectus) in respect of the Funds was issued by the Decision Makers.
4. The fiscal year end of the Funds is August 31. Pursuant to section 4.2 of NI 81-106, and subject to any relief obtained pursuant to this application, the Funds would be required to prepare and file in the Jurisdictions an annual MRFP for the period ended August 31, 2007.
5. Units of the Funds will only be offered for sale to the public on or about November 8, 2007. Accordingly, no units, other than for seed capital purposes, were issued as of August 31, 2007.
6. The Funds carried on no relevant investment activities from the date of their organization until their fiscal year-end and accordingly would have no meaningful information to report in the financial highlights for the purposes of the preparation of an MRFP.
7. The benefit of preparing and filing an MRFP for each Fund would be minimal in view of (i) the short period from the date of the receipt of the Prospectus, August 21, 2007, to the fiscal year end, August 31, 2007; (ii) the nature of the minimal business carried on by the Fund, and (iii) no units of the Funds, other than for seed capital purposes, were issued as of August 31, 2007.
8. The limited activities of the Funds for the period from August 15, 2007 to August 31, 2007 do not provide meaningful information for the purposes of the preparation of an MRFP.
9. Form 81-106F1 requires a discussion of how changes to the investment fund over the financial year affected the overall level of risk associated with an investment fund, a summary of the results of operations of the investment fund for the fmancial year-end, and a discussion of the recent developments affecting the investment fund. Given the minimal business carried on by the Funds and the fact that the Funds filed the Prospectus close to their fiscal year end, no disclosure on these and other items required to be disclosed by Form 81-106F1 could be meaningfully provided in the MRFP.
10. Each Fund will audit its annual financial statements for the period ended August 31, 2007.
11. The expense to the Funds of preparing and filing MRFPs would not be justified in view of the benefit to be derived from receiving MRFPs.
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.