Proposed Form 81-101F1 and Rescission of National Policy No. 36

Proposed Form 81-101F1 and Rescission of National Policy No. 36

Request for Comment National Instrument

 


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NATIONAL INSTRUMENT 81-101
MUTUAL FUND PROSPECTUS DISCLOSURE
FORM 81-101F1
CONTENTS OF FUND SUMMARY
TABLE OF CONTENTS

TITLE PART

Item 1: Front Cover Disclosure
Item 2: Table of Contents
Item 3: Introductory Disclosure
Item 4: General Investment Risks
Item 5: Organization and Management Details if Fund Summary Describes More than One Mutual Fund
Item 6: Fund-Specific Information
Item 7: Suitability
Item 8 Investment Objectives
Item 9: Investment Strategies
Item 10: Risks
Item 11: Past Performance
Item 12: Distribution Policy
Item 13: Financial Highlights
Item 14: Purchases, Transfers and Redemptions
Item 15: Optional Services Provided by the Mutual Fund Organization
Item 16: Fees and Expenses
Item 17: Dealer Compensation
Item 18: Income Tax Considerations for Investors
Item 19: Statement of Rights
Item 20: Back Cover

 

 

 

 

NATIONAL INSTRUMENT 81-101

 

 

MUTUAL FUND PROSPECTUS DISCLOSURE

 

 

FORM 81-101F1

 

 

CONTENTS OF FUND SUMMARY

 

 

GENERAL INSTRUCTIONS:

 

(1) This Form describes the disclosure required in a fund summary of a mutual fund. Each Item of this Form outlinesdisclosure requirements. Instructions to help you provide this disclosure are printed in italic type.

(2) Terms defined in National Instrument 81-101 Mutual Fund Prospectus Disclosure, National Instrument 81-102Mutual Funds or National Instrument 81-105 Mutual Fund Sales Practices and used in this Form have the meaningsthat they have in those national instruments.

(3) The fund summary shall state the required information concisely and in plain language. Reference should be madeto Part 3 of Companion Policy 81-101CP for a discussion concerning plain language and presentation.

(4) Respond as simply and directly as reasonably possible and include only as much information as is necessary to anunderstanding of the fundamental and particular characteristics of the mutual fund. Brevity is especially importantin describing practices or aspects of a mutual fund's operations that do not differ materially from those of othermutual funds.

(5) National Instrument 81-101 requires the fund summary to be presented in a format that assists in readability andcomprehension. This Form does not mandate the use of a specific format to achieve these goals. However, mutualfunds are encouraged to use, as appropriate, tables, captions, bullet points or other organizational techniques thatassist in presenting the required disclosure clearly and concisely.

(6) Despite securities legislation, the fund summary shall present each Item in the order listed below. Each Item shallbe presented under the heading or sub-heading stipulated in this Form, without any reference to the Item number.If no sub-heading for an Item is stipulated in this Form, a mutual fund may include sub-headings, under the requiredheadings, at its option. Additional material, other than educational material and the documents incorporated byreference, not contemplated by this Form may not be included in, attached to or bound with, the fund summary.Educational material may be included in the fund summary in sidebars or otherwise separated from the mandateddisclosure, and if it is close to mandated disclosure to which it relates.

(7) The fund summary may contain photographs and artwork only if they are relevant to the business of the mutualfund, mutual fund family or members of the organization of the mutual fund and are not misleading.

(8) The first part of the fund summary shall consist of the front cover (Item 1) followed on a new page, which may bethe inside front cover, by a table of contents that is optional if the fund summary contains information about onemutual fund and required for all other fund summaries (Item 2), introductory information about the mutual fund ormutual funds described in the fund summary (Item 3), a brief description of mutual funds, the investment risksinherent in an investment in mutual funds generally and, at the option of the mutual funds, the risks applicable tomore than one mutual fund described in the Fund Summary (Item 4), and a quick reference table for a fundsummary that describes more than one mutual fund (Item 5).

(9) Following the first part, provide the information, starting on a new page, required by Items 6 to 13 inclusive. Fora fund summary with information about more than one mutual fund, information about each of the mutual fundsdescribed in the fund summary shall be provided on a fund by fund or "catalogue" basis and shall set out for eachfund separately the information required by Items 6 to 13, inclusive, for that particular mutual fund. The informationabout a particular mutual fund required by Items 6 through 13 shall start on a separate page for each mutual fund.Information required by these Items relating to one mutual fund shall not be included in the information relating toanother mutual fund.

(10) The final part of the fund summary shall consist of information about all of the mutual funds described in the fundsummary (Items 14 to 19, inclusive).

(11) The back cover of the fund summary shall contain the information required by Item 20.

(12) At the option of the mutual fund, any footnotes provided for under any Item in this Form may be deleted if thesubstance of the footnotes is otherwise provided.

Item 1 Front Cover Disclosure

(1) Indicate on the front cover whether the document is a preliminary fund summary, a pro forma fund summary, acombined pro forma and preliminary fund summary or a fund summary.

(2) Indicate on the front cover the name of the mutual fund, mutual funds or mutual fund family for which informationis provided in the document.

(3) Despite securities legislation, state on the front cover of a preliminary fund summary the following, with bracketedinformation completed:

"A copy of this Fund Summary has been filed with [the securities authority(ies) in each of/certain of theprovinces/provinces and territories of Canada] but has not yet become final for the purpose of a distribution.Information contained in this Fund Summary may not be complete and may have to be amended. The[units/shares] described in this Fund Summary may not be sold to you until a receipt for the Fund Summary isobtained by the mutual fund from the securities regulatory [authority(ies)]."

(4) If a commercial copy of the preliminary fund summary is prepared, print the legend referred to in subsection (3)in red ink.

(5) For a preliminary fund summary, combined pro forma and preliminary fund summary or fund summary, indicatethe date of the document, which shall be the date of the certificates contained in the related fund prospectus. Thisdate shall be within three business days of the date the document is filed with the securities regulatory authority.Write the date in full, writing the name of the month in words. A pro forma fund summary need not be dated, butmay reflect the anticipated date of the fund summary.

(6) For a combined pro forma and preliminary fund summary, indicate the mutual fund or mutual funds for which thedocument is a pro forma fund summary and the mutual fund or mutual funds for which the document is apreliminary fund summary.

(7) State, in substantially the following words:

"No securities regulatory authority has expressed an opinion about these [units/shares] and it is an offence to claimotherwise."

Item 2 Table of Contents

(1) Despite securities legislation, a fund summary that relates to only one mutual fund may, but need not, contain atable of contents.

(2) Despite securities legislation, a fund summary that relates to more than one mutual fund shall contain a table ofcontents.

(3) If a table of contents is included, it shall begin on a new page, which may be the inside front cover of the fundsummary, and include the name of each mutual fund to which the fund summary relates, with the number of thepage where information about that mutual fund can be found.

Item 3 Introductory Disclosure

(1) If the fund summary contains information about only one mutual fund, provide, either on a new page or immediatelyunder the table of contents, under the heading "Introduction", the following statement, with bracketed informationcompleted, in substantially the following words:

" This Fund Summary contains selected important information about [insert the name of the mutual fund]to help you make an informed investment decision about investing in the Fund and to help you understandyour rights as an investor in the Fund.

This Fund Summary contains information about the Fund and the risks of investing in mutual fundsgenerally, as well as the names of the firms responsible for the management of the Fund. You will findother specific information about the Fund, including

- information on the type of investor for whom the Fund is most suitable,

- the investment objectives and investment strategies of the Fund,

- the specific risks associated with investing in the Fund,

- the past performance of the Fund,

- how the Fund distributes earnings to investors,

- financial highlights, and

- a summary of the Fund's fees and expenses.

Additional information about the Fund is available in the Fund Prospectus, the Fund's most recently filedannual financial statements and any interim financial statements of the Fund filed after those annualfinancial statements. These documents are incorporated by reference into this Fund Summary, whichmeans that they legally form part of this document just as if they were printed as a part of this document.You can get a copy of the Fund Prospectus and those financial statements, including a statement ofportfolio transactions, at no cost by calling [toll-free/collect] [insert the toll-free telephone number ortelephone number where collect calls are accepted, as required by section 3.4 of the Instrument], or fromyour financial adviser.

[If applicable, also add the following statement]

These documents are available on the [Fund's/mutual fund family's] Internet site at [insert Fund's Internetsite address], or by contacting the [Fund/mutual fund family] at [insert Fund's/mutual fund family's e-mailaddress].

These documents and other information about the Fund are available on the Internet site of SEDAR (theSystem for Electronic Document Analysis and Retrieval) at http://www.sedar.com."

(2) If the fund summary contains information about more than one mutual fund, provide, either on a new page orimmediately under the table of contents, under the heading "Introduction" the following statement, with bracketedinformation completed, in substantially the following words:

" This Fund Summary contains selected important information about [insert the names of the mutual fundscovered by the fund summary or state, if less than all of the Funds of a mutual fund family are covered bya fund summary: (insert number) of the Funds in the (insert name of mutual fund family) or state, if all ofthe Funds of a mutual fund family are covered by a fund summary: the Funds in the (insert name of themutual fund family)] to help you make an informed investment decision about investing in the Funds andto help you understand your rights as an investor in the Funds.

This Fund Summary is divided into three parts:

The first part, from pages to , is an introductory section that provides some general information aboutthe Funds, the risks of investing in mutual funds generally and lists the firms responsible for themanagement of the [name of fund family] Funds.

The second part, from pages to , contains specific information about each Fund described in this FundSummary, including, for each Fund,

- information on the type of investor for whom the Fund is most suitable,

- the investment objectives and investment strategies of the Fund,

- the specific risks associated with investing in the Fund,

- the past performance of the Fund,

- how the Fund distributes earnings to investors,

- financial highlights, and

- a summary of the Fund's fees and expenses.

The third part, from pages to , contains general information applicable to all of the [name of fund family]Funds.

Additional information about the Funds is available in the Funds' Prospectus and the Funds' most recentlyfiled annual financial statements and any interim financial statements of the Funds filed after those annualfinancial statements. These documents are incorporated by reference into this Fund Summary, whichmeans that they legally form part of this document just as if they were printed as a part of this document.You can get a copy of the Funds' Prospectus and those financial statements, including a statement ofportfolio transactions, at no cost by calling [toll-free/collect] [insert the toll-free telephone number ortelephone number where collect calls are accepted, as required by section 3.4 of the Instrument], or fromyour financial adviser.

[If applicable, also add the following statement]

These documents are available on the [Funds'/mutual fund family's] Internet site at [insert Funds'/mutualfund family's Internet site address], or by contacting the [Funds/mutual fund family] at [insert e-mailaddress].

These documents and other information about the Funds are available on the Internet site of SEDAR (theSystem for Electronic Document Analysis and Retrieval) at http://www.sedar.com."

Item 4 General Investment Risks

(1) Disclose under the heading "What is a Mutual Fund and What are the Risks of Investing in a Mutual Fund?"

(a) a brief general description of the nature of a mutual fund; and

(b) the risk factors or other investment considerations that an investor should take into account that areassociated with

(i) investing in mutual funds generally; and

(ii) at the option of the mutual funds described in the Fund Summary, that are applicable to morethan one of those mutual funds.

(2) At a minimum, include disclosure in substantially the following words:

" Mutual funds own different types of investments, depending upon their investment objectives. The valueof these investments will change from day to day, reflecting changes in interest rates, economic conditions,and market and company news. As a result, the value of a mutual fund's [units/shares] may go up anddown, and the value of your investment in a mutual fund may be more or less when you redeem it thanwhen you purchased it.

The [name of mutual fund organization] organization does not guarantee that the full amount of yourinvestment in any [name of mutual fund family] mutual fund will be returned to you.

Unlike bank accounts or GICs, mutual fund [units/shares] are not covered by the Canada DepositInsurance Corporation or any other government deposit insurer."

(3) State that, under exceptional circumstances, a mutual fund may suspend redemptions. Provide a cross-referenceto the disclosure provided in response to Item 14(3).

INSTRUCTIONS:

(1) Examples of the risks that may be disclosed under subparagraph 1(b)(ii) are stock market risk, interest rate risk,foreign security risk, foreign currency risk, specialization risk and risk associated with the use of derivatives. If thisrisk disclosure is provided under subparagraph 1(b)(ii), the fund-specific disclosure about each mutual funddescribed in the fund summary should contain a cross-reference to the appropriate parts of this risk disclosure.

(2) In providing disclosure under subparagraph 1(b)(ii), follow the instructions under Item 10, as appropriate.

Item 5 Organization and Management Details if Fund Summary Describes More than One Mutual Fund

(1) If the fund summary contains information about more than one mutual fund, provide, under the heading"Organization and Management Details of the [insert name of mutual fund family]", information about the membersof the organization of the mutual funds in the form of the following table or in the form of an appropriately labelleddiagram containing the information contemplated by the following table.

Manager [insert the name, address and telephone number of the manager of the funds and, ifapplicable, the location of the Internet site of the manager or the mutual funds]
Trustee(s) [insert the name of the funds' trustee or trustees, if the funds are trusts]
Portfolio Adviser [insert the name of the funds' portfolio adviser and, if related to the funds' manager,the nature of the relationship]
Principal Distributor [insert the name of the funds' principal distributor, if applicable, and, if related to thefunds' manager, the nature of the relationship]
Custodian [insert the name of the funds' custodian]
Registrar [insert the name of the funds' registrar]
Auditor [insert the name of the funds' auditor]

(2) For each entity listed in the table or diagram, briefly describe the services provided by that entity.

(3) For each entity listed in the table or diagram, other than the manager of the mutual funds, provide the municipalityand the province or country where it principally provides its services to the mutual funds. Provide the completemunicipal address for the manager of the mutual funds.

(4) Despite subsection (1), if the information required by subsection (1) is not the same for all of the mutual fundsdescribed in the fund summary, provide in the table or diagram contemplated by subsection (1) only thatinformation that is the same for all of the mutual funds and provide the remaining disclosure required by thatsubsection in the table required by Item 6.

INSTRUCTIONS:

(1) The information required to be disclosed in the table in this Item shall be presented prominently, using enough spaceso that it is easy to read.

(2) The descriptions of the services provided by the entities listed in the table or diagram should be brief. For instance,the manager may be described as "manages the overall business and operations of the funds", a portfolio advisermay be described as "provides investment advice to the manager about the investment portfolio of the funds" or"manages the investment portfolio of the funds", and a "principal distributor" may be described as "markets thesecurities of the funds and sells securities [through brokers and dealers] [or its own sales force]".

Item 6 Fund-Specific Information

6.1 Organization, Management and Other Details if the Fund Summary Describes Only One Mutual Fund

(1) If the fund summary contains information about only one mutual fund, provide, under the heading "Organization,Management and Other Details", information about the mutual fund in the form of the following table.

Manager [insert the name, address and telephone number of the manager of the fund and, ifapplicable, the location of the Internet site of the manager or the mutual fund]
Trustee(s) [insert the name of the fund's trustee or trustees, if the fund is a trust]
Portfolio Adviser [insert the name of the fund's portfolio adviser and, if related to the fund's manager,the nature of the relationship]
Principal Distributor [insert the name of the fund's principal distributor, if applicable, and, if related to thefund's manager, the nature of the relationship]
Custodian [insert the name of the fund's custodian]
Registrar [insert the name of the fund's registrar]
Auditor [insert the name of the fund's auditor]
Type of Fund [insert: [Canadian/other country/regional/ international] money market fund, bondfund, balanced fund or equity fund, or other description that accurately identifies thetype of mutual fund]
Fund Was Established On [insert date]
Securities Offered [specify the mutual fund units or shares, or class or series of mutual fund units orshares, offered under the fund summary]
Registered Tax Plan Status [Eligible/Not eligible] as an investment for [registered retirement savings plans,registered retirement income funds or deferred profit sharing plans]. The[units/shares] will [not] constitute foreign property for purposes of the Income TaxAct.
Fees and Expenses Management fee [insert management fee, including any performance or incentivefee] of %, plus other fees and expenses. See "Fees and Expenses" on page .

(2) The required information contemplated by the table that relates to persons or companies that provide services tothe mutual fund can be provided in the form of an appropriately labelled diagram instead of in the form of the table.

(3) Follow the requirements and instructions of Item 4 of this Form in connection with the table or diagram.

6.2 Fund-Specific Information if the Fund Summary Describes More than One Mutual Fund

(1) If the fund summary provides information about more than one mutual fund, include

(a) at the top of the first page of the first section of the fund summary that provides information about aspecific mutual fund, the heading "Specific Information About Each of the Mutual Funds Described in thisFund Summary"; and

(b) at the top of each page of each section of the fund summary that provides information about a specificmutual fund, a heading consisting of the name of the mutual fund described on that page.

(2) Provide information about each mutual fund described in the fund summary in the form of the following table.

(3) Include in the table any information that was omitted from the table required by subsection (1) of Item 5 inaccordance with the requirements of subsection (4) of that Item, in the form and order and under the headingsrequired by that Item.

(4) Follow the requirements and instructions of Item 5 of this Form in connection with the table.

Type of Fund [insert: [Canadian/other country/regional/ international] money market fund, bondfund, balanced fund or equity fund, or other description that accurately identifies thetype of mutual fund]
Fund Was Established On [insert date]
Securities Offered [specify the mutual fund units or shares, or class or series of mutual fund units orshares, offered under the fund summary]
Registered Tax Plan Status [Eligible/Not eligible] as an investment for [registered retirement savings plans,registered retirement income funds or deferred profit sharing plans]. The[units/shares] will [not] constitute foreign property for purposes of the Income TaxAct.
Fees and Expenses Management fee [insert management fee, including any performance or incentivefee] of %, plus other fees and expenses. See "Fees and Expenses on page .

INSTRUCTION:

If the mutual fund pays a fee that is determined by the performance of the mutual fund, the disclosure required by paragraph7.1(1)(c) of National Instrument 81-102 to be described in a fund summary(1) of the mutual fund should be included in afootnote to the description of the incentive fee in the above tables.

Item 7 Suitability(2)

Provide a brief statement of the suitability of the mutual fund for particular investors under the heading "Who Should Investin this Fund?", describing the characteristics of the investor for whom the mutual fund may or may not be an appropriateinvestment, and the portfolios for which the mutual fund is suited or for which the mutual fund should not be used.

INSTRUCTIONS:

(1) In responding to the disclosure required by this Item, indicate the level of investor risk tolerance that would beappropriate for investment in the mutual fund.

(2) If the mutual fund is particularly unsuitable for certain types of investors or for certain types of investment portfolios,emphasize this aspect of the mutual fund, and disclose both the types of investors who should not invest in themutual fund, with regard to investments on both a short and long term basis, and the types of portfolios that shouldnot invest in the mutual fund.

Item 8 Investment Objectives

Set out under the heading "What Does the Fund Invest In?" and under the sub-heading "Investment Objectives" theinvestment objectives of the mutual fund, including information that describes the fundamental nature of the mutual fundor the fundamental features of the mutual fund that distinguish it from other mutual funds.(3)

INSTRUCTIONS:

(1) State what type or types of security, such as money market instruments, bonds or equity securities, the mutual fundwill primarily invest in and indicate what other types of securities may form part of the mutual fund's portfolio assets,under normal market conditions.

(2) State whether, and to what extent, the mutual fund does or intends to, or may, invest solely or a specific portionof its assets in Canadian securities or foreign securities.

(3) If the mutual fund does or intends to, or if its name implies that it will

(a) invest solely or a specific portion of its assets in a particular type of issuer, such as small capitalizationissuers or issuers located in emerging markets countries;

(b) concentrate its investments geographically or in a particular industry segment; or

(c) invest in portfolio assets other than securities,

the mutual fund's investment objectives should so indicate.

(4) If a particular investment strategy is an essential aspect of the mutual fund, as evidenced by the name of the mutualfund or the manner in which the mutual fund is marketed, disclose this strategy as an investment objective. Thisinstruction would be applicable, for example, to a mutual fund that described itself as an "asset allocation fund" ora "mutual fund that invests primarily through the use of derivatives".

Item 9 Investment Strategies

(1) Describe under the heading "What Does The Fund Invest In?" and under the sub-heading "Investment Strategies"

(a) the principal investment strategies that the mutual fund intends to use in achieving its investmentobjectives; and

(b) the process by which the mutual fund's portfolio adviser selects securities for the fund's portfolio, includingany investment approach, philosophy, practices or techniques used by the portfolio adviser or anyparticular style of portfolio management that the portfolio adviser intends to follow.

(2) If the mutual fund intends to use permitted derivatives

(a) for hedging purposes only, state that the mutual fund may use derivatives for hedging purposes only; and

(b) for non-hedging purposes, or for hedging and non-hedging purposes, briefly describe

(i) how permitted derivatives are or will be used in conjunction with other securities to achieve themutual fund's investment objectives, and

(ii) the limits of the mutual fund's use of permitted derivatives.(4)

(3) If the mutual fund is not a money market fund, and intends to engage in active and frequent trading of portfoliosecurities as a principal investment strategy to achieve its investment objectives such that the portfolio turnoverrate of the mutual fund is expected to be more than 70 percent, describe

(a) the tax consequences to shareholders of an active portfolio turnover, and

(b) how the tax consequences of, or trading costs associated with, the mutual fund's portfolio turnover mayaffect the mutual fund's performance.

(4) If the mutual fund may depart temporarily from its investment objectives as a result of adverse market, economic,political or other considerations, disclose any temporary defensive tactics the mutual fund's portfolio adviser mayuse or intends to use in response to such conditions.

Item 10 Risks

(1) Set out specific information concerning any material risks associated with an investment in the mutual fund, otherthan those risks previously discussed in response to Item 4, in decreasing order of materiality to an investor, underthe heading "What are the Risks of Investing in the Fund?".

(2) For money market funds, include disclosure in substantially the following words:

"Although [insert the name of the money market fund] intends to maintain a constant price for its [units/shares], wedo not guarantee that the price will not go up and down.]"

(3) Include specific cross-references to the risks described in response to paragraph 1(b) of Item 4 that are applicableto the mutual fund.

INSTRUCTIONS:

(1) Consider the mutual fund's portfolio investments as a whole.

(2) Provide the disclosure in the context of the mutual fund's investment objectives and investment strategies, outliningthe risks associated with any particular aspect of those investment objectives and investment strategies.

(3) Include a discussion of general market, political, market sector, liquidity, interest rate, foreign currency,diversification, credit, legal and operational risks, as appropriate.

(4) Include a brief discussion of general investment risks, such as specific company developments, stock marketconditions, general economic and financial conditions in those countries where the investments of the mutual fundare listed for trading, applicable to the particular mutual fund.

(5) If derivatives are to be used by the mutual fund for non-hedging purposes, describe the risks associated with anyuse or intended use by the mutual fund of permitted derivatives.

Item 11 Past Performance(5)

Item 11 applies only to mutual funds that are permitted under subparagraph 15.4(1)(a)(i) of National Instrument 81-102Mutual Funds to include performance data in their sales communications.(6)

11.1 Year-by-Year Returns

(1) Provide a bar chart prepared in accordance with the requirements of subsections (2) and (3) of this Item under theheading "Past Performance" and under the sub-heading "Year-by-Year Returns", and introduced in substantiallythe following words:

"The bar chart below shows the Fund's annual performance in each of the past [insert number] years, and illustratesthat the Fund's performance has changed from year to year. This chart also shows, in percentage terms, howmuch an investment made on January 1 in each year would have grown or decreased by December 31 in that year.How the Fund has performed in the past does not necessarily indicate how it will perform in the future."

(2) Show, in chronological order with the most recent year on the right of the bar chart, the annual total return,calculated as provided under subsection (3), of the mutual fund for the lesser of

(a) each of the ten most recently completed calendar years; and

(b) each of the completed calendar years in which the mutual fund has been in existence and in which thesecurities of the mutual fund have been offered by way of a prospectus, simplified prospectus or fundsummary.

(3) Calculate the annual total return of the mutual fund for a year by taking the net asset value per security(7) of themutual fund at the end of the year and dividing it by the net asset value per security of the mutual fund at thebeginning of the year, and expressing the result as a percentage, using the methodology set forth in subsection15.5(5), including the assumptions in subsection 15.5(1), and subsection 15.5(6), of National Instrument 81-102.(8)

(4) Provide the disclosure contemplated by paragraph 15.4(1)(i)(9) of National Instrument 81-102 in the bar chart, ifapplicable, and add a footnote to the bar chart to discuss this disclosure.

(5) Set out in footnotes to the bar chart the assumptions relevant to the calculation of the performance information,and include a statement of the significance for taxable investors of the assumption that distributions are reinvested.

11.2 Line Graph

(1) If the mutual fund is not a money market fund, include immediately following the table required by Item 11.1, underthe sub-heading "Overall Past Performance", a line graph that shows the information described in subsection (2)for the period determined under subsection (3).

(2) The information to be provided in the line graph is

(a) the initial value of a hypothetical $10,000 investment in the mutual fund made at the beginning of theperiod determined under subsection (3);

(b) the subsequent values of the investment referred to in paragraph (a) at the end of each year in the perioddetermined under subsection (3); and

(c) assuming a level of $10,000 at the beginning of the period determined under subsection (3), thesubsequent levels of each index selected under subsection (6) at the end of each year in the perioddetermined under subsection (3).

(3) The period covered by the line graph is an unbroken period that

(a) ends on December 31 of the year before the date of the fund summary; and

(b) consists of the least of

(i) 10 years,

(ii) the time since the inception of the mutual fund, and

(iii) the time since the mutual fund began to offer its securities by way of a prospectus, simplifiedprospectus or fund summary.

(4) Show the hypothetical values for the mutual fund and the index or indices in chronological order, with the mostrecent year on the right.

(5) Introduce the line graph using substantially the following words:

"The following graph shows the growth of a hypothetical $10,000 investment in the Fund, as compared to theincrease of [name of index or indices] for the past [state number] year[s]. The Fund returns assume that alldistributions made by the Fund in this period were reinvested in additional [units/shares] of the Fund and the returnsdo not take into account sales, redemption, distribution or other optional charges or income taxes payable by youthat would have reduced your returns. How the Fund has performed in the past does not necessarily indicate howit will perform in the future."

(6) Select for inclusion in the line graph

(a) one or more appropriate broad-based securities market indices; and

(b) at the option of the mutual fund, one or more non-securities financial indices or narrowly-based marketindices that reflect the market sectors in which the mutual fund invests.

(7) If the mutual fund includes in the line graph an index that is different from those included in the previously filed fundsummary, explain the reason(s) for the addition and include in the line graph the disclosure required by this Itemfor both the new and former indices.

(8) Disclose by way of footnotes to the line graph the assumptions that were used to prepare it.

(9) Provide the disclosure contemplated by subparagraph 15.4(1)(i) of National Instrument 81-102 Mutual Funds, ifapplicable.

INSTRUCTIONS:

(1) Use a linear scale for the each axis of the line graph.

(2) Start the y-axis at $0.

(3) An "appropriate broad-based securities market index" is one that

(a) is administered by an organization that is not affiliated with any of the mutual fund, its manager, its portfolioadviser or principal distributor, unless the index is widely recognized and used; and

(b) has been adjusted by its administrator to reflect the reinvestment of dividends on securities in the indexor interest on debt.

(4) It may be appropriate for a mutual fund that invests in more than one type of security to compare its performanceto a mix of relevant indices. For example, a balanced fund may wish to compare its performance to both a bondindex and an equity index or to a blended return based on a combination of the returns of the bond index and theequity index, in proportions comparable to the mutual fund's own investment mix.

(5) In addition to the appropriate broad-based securities market index, the mutual fund may compare its performanceto other more financial or narrowly based securities indices that reflect the market sectors in which the mutual fundinvests or that provide useful comparatives to the performance of the mutual fund. For example, a mutual fundcould compare its performance to an index that measured the performance of certain sectors of the stock market(e.g. communications companies, financial sector companies, etc.) or to a non-securities index, such as theConsumer Price Index, so long as the comparison is not misleading.

11.3 Annual Compound Returns

(1) If the mutual fund is not a money market fund(10), disclose, in the form of the following table immediately followingthe line graph required by Item 11.2, under the sub-heading "Annual Compound Returns"

(a) the mutual fund's past performance for the 10, five, three and one year periods(11) ended on December 31in the year immediately before the year in which the fund summary is filed; and

(b) if the mutual fund was offering its securities by way of a prospectus, simplified prospectus or fundsummary for more than one and less than ten years, the mutual fund's past performance since theinception of the mutual fund.

(2) Despite subsection (1), information shall not be provided for any period if the mutual fund was not offering itssecurities by way of a prospectus, simplified prospectus or fund summary at all times during the period.

(3) Introduce the table using substantially the following words:

"The following table shows the Fund's historical annual compound total return [since its inception and] for the past[ten, five, three and one] year periods ended on December 31, [insert year], as compared to the performance of[name of index or indices]. The Fund returns assume that all distributions made by the Fund in those periods werereinvested in additional [units/shares] of the Fund, and the returns do not take into account sales, redemption,distribution or optional charges or income taxes payable by you that would have reduced your returns. How theFund has performed in the past does not necessarily indicate how it will perform in the future."

  Since

Inception

 Past 10Years Past 5Years Past 3Years Past Year
Fund
%
%
%
%
%

[name

of

index]
%
%
%
%
%

 

(4) Include in the table, for the same periods for which total return information about the mutual fund is provided, thehistorical annual compound returns or changes of the index or indices for which information is provided in the linegraph prepared under Item 11.2.

(5) In preparing the table contemplated by subsection (1), reflect or include all elements of return and calculate themutual fund's compound total return using the assumptions and methodology set out in subsection 15.5(1), theapplicable definitions set out in paragraph 15.5(4), and the requirements of subsections 15.5(3), (5) and (6) andparagraph 15.5(7)(a), of National Instrument 81-102.(12)

(6) If the mutual fund includes in the table an index that is different from those included in the previously filed fundsummary, explain the reason(s) for the change and include in the table the disclosure required by this Item for boththe new and former indices.

(7) Disclose by way of footnotes to the table the assumptions that were used to prepare it.

(8) Provide the disclosure contemplated by subparagraph 15.4(1)(i) of National Instrument 81-102, if applicable.

Item 12 Distribution Policy

State under the heading "Distribution Policy" whether distributions are made by the mutual fund in cash or reinvested insecurities of the mutual fund, and indicate when distributions are made.

Item 13 Financial Highlights

(1) Provide selected financial information about the mutual fund under the heading "Financial Highlights", in the formof the following tables, appropriately completed, and introduced using substantially the following words:

"The following tables show selected key financial information about the Fund and are intended to help you understand theFund's financial performance for the past [insert number] years. This information is derived from the Fund's audited annualfinancial statements. Please see page [insert page number] for information about how you can obtain the Fund's auditedfinancial statements."

The Fund's Size

  [insertyear] [insertyear] [insertyear] [insert year] [insertyear]
Net assets(1) $ $ S $ $
Number of[units/shares] outstanding(1)          

(1) This information is provided as of [insert date of the end of the mutual fund's financial year] in the year indicated.

The Fund's Unit/Share Values

  [insertyear] [insertyear] [insertyear] [insert year] [insert year]
[Unit/Share] value as at[insert beginning offinancial year] in the yearindicated $ $ $ $ $
[Unit/Share] value as at[insert end of financialyear] $ $ $ $ $

The Fund's Distributions per [Unit/Share]

  [insert year] [insert year] [insert year] [insert year] [insert year]
From net investmentincome $ $ $ $ $
From net realizedcapital gains $ $ $ $ $
As a return of capital $ $ $ $ $
Total annualdistributions(1) $ $ $ $ $

(1) The information in this table is for the period from [insert date] to [insert date] in the year indicated and is based upon the weightedaverage number of [units/shares] outstanding during the year. Distributions were [paid in cash/reinvested in additional [units/shares]of the Fund/paid in cash or reinvested in additional [units/shares] of the Fund in accordance with the instructions of the investor].

The Fund's Fees and Expenses and Portfolio Turnover

  [insert year] [insert year] [insert year] [insert year] [insert year]
Management fee rate(1) % % % % %
Operating expenserate(1),(2) % % % % %
Management expenseratio(1),(3) % % % % %
Portfolio turnoverrate(1),(4) % % % % %

(1) This information is provided for the period from [insert date] to [insert date] in the year indicated.

(2) The Fund's operating expense rate is the total of all operating expenses, except brokerage commissions, paid by it in the year, expressed as a percentageof its average total net assets during the year.

(3) The Fund's management expense ratio is the total of the management fees and all operating expenses, except brokerage commissions, paid by it in theyear, expressed as a percentage of its average total net assets during the year. [If applicable, add the disclosure required by subsections 6.1(2) and (3)of the Instrument]

(4) The Fund's portfolio turnover rate indicates how actively the Fund's portfolio adviser manages its portfolio investments. A portfolio turnover rate of 100%is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund's portfolio turnover rate ina year, the greater the trading costs payable by the fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year.There is not necessarily a relationship between a high turnover rate and the performance of a fund.

(2) Derive the selected financial information in the tables referred to in subsection (1) from the audited annual financialstatements of the mutual fund.

(3) Provide per unit or per share amounts to the nearest cent, and provide percentage amounts to two decimal places.

(4) Provide the selected financial information required by this Item in chronological order for each of the five mostrecently completed financial years of the mutual fund for which audited financial statements have been filed, withthe information for the most recent financial year in the first column on the right of the table.

(5) If the mutual fund was not in existence or was not offering its securities by way of prospectus for any year for whichinformation would otherwise be required to be provided under subsection (4), the tables shall not include anyinformation for that year and the mutual fund shall disclose by way of a note to the table that the information isunavailable because the mutual fund only came into existence or only commenced offering its securities by wayof prospectus, simplified prospectus or fund summary on a date specified in that note.

(6) If the mutual fund has been in existence less than five years, the management expense ratio for the year in whichit started shall be annualized and this fact shall be disclosed by way of a note to the applicable table.

(7) If the basis of the calculation of the management fees or of the other fees, charges or expenses that are chargedto the mutual fund is changed or is proposed to be changed and if the change would have had an effect on themanagement expense ratio for the last completed financial year of the mutual fund if the change had been in effectthroughout that financial year, disclose the effect of the change on the management expense ratio in a note to theappropriate table.

(8) If the mutual fund pays fees that are determined by the performance of the mutual fund, add a line item to the tablethat shows the percentage of average total net assets that those incentive fees represented in each year coveredby the table.

(9) Do not include disclosure concerning portfolio turnover rate for a money market fund.

INSTRUCTIONS:

(1) Calculate the average total net assets of the mutual fund by totalling the total net assets of the mutual fundcalculated on each date on which the net asset value of the mutual fund is calculated and dividing by the sum bythe number of valuation dates in the year.

(2) Calculate and include the information contained in the "Fund's Distributions" table on a per [unit/share] basis.

(3) Calculate the mutual fund's portfolio turnover rate by dividing the lesser of the amounts of the purchases or salesof portfolio securities for the financial year by the average of the value of the portfolio securities owned by the mutualfund in the financial year. Calculate the monthly average by totalling the values of portfolio securities as at thebeginning and end of the first month of the financial year and as at the end of each of the succeeding 11 monthsand dividing the sum by 13. Exclude from both numerator and denominator amounts relating to all securities havinga remaining term to maturity on the date of acquisition by the mutual fund of one year or less.

(4) Calculate the operating expense rate of the mutual fund, exclusive of management fees and brokerage fees, asa percentage of its average total net assets during the year.

(5) Calculate the management expense ratio of the mutual fund as required by section 6.1 of National Instrument 81-101.

(6) It is not necessary for a money market fund to include the table describing the unit value unless the fund has notmaintained a constant net asset value.

Item 14 Purchases, Transfers and Redemptions

(1) Following the information provided in response to Items 6 to 13, inclusive, about each of the mutual fundsdescribed in the fund summary, starting on a new page, include a heading "General Information about the [insertname of mutual fund family] Fund[s]".

(2) Under the heading provided for in subsection (1), briefly describe, under the heading "Purchases, Transfers andRedemptions", how an investor can purchase, transfer and redeem the securities of the mutual fund or mutualfunds offered under the fund summary and how often each mutual fund is valued, and state that the issue andredemption price of those securities is based on the mutual fund net asset value of a security of that class, or seriesof a class, next determined after the receipt by the mutual fund of the purchase order or redemption order.(13)

(3) State that, under extraordinary circumstances, the rights of investors to redeem securities may be suspended bythe mutual fund, and describe the circumstances when the suspension of redemption rights could occur.

(4) For a new mutual fund that is being sold on a best efforts basis, state whether the issue price will be fixed duringthe initial distribution period, and state when the mutual fund will begin issuing and redeeming securities based onthe net asset value per security of the mutual fund.

(5) Describe all available purchase options and state, if applicable, that the choice of different purchase optionsrequires the investor to pay different fees and expenses and, if applicable, that the choice of different purchaseoptions affects the amount of compensation paid by a member of the organization of the mutual fund to the dealer.Include cross-references to the disclosure provided under Items 16 and 17 of this Form.

Item 15 Optional Services Provided by the Mutual Fund Organization

If applicable, describe the optional services, under the heading "Optional Services", that may be obtained by typical investorsfrom the mutual fund organization, and briefly describe these services.

INSTRUCTION:

Disclosure in this Item should include, for example, any asset allocation services, registered tax plans, foreign contentmonitoring plans, regular investment and withdrawal plans, U.S. dollar purchase plans, periodic purchase plans, contractualplans, periodic withdrawal plans or transfer privileges.

Item 16 Fees and Expenses

16.1 General Disclosure

(1) Set out information about the fees and expenses payable by the mutual fund or mutual funds described in the fundsummary and by investors in those mutual funds under the heading "Fees and Expenses".

(2) The information required by this Item shall first be a summary of the fees, charges and expenses of each mutualfund and investors presented in the form of the following table, appropriately completed, and introduced usingsubstantially the following words:

"This table lists the fees and expenses that you may have to pay if you invest in the [insert the name of the mutualfund or the mutual fund family]. You may have to pay some of these fees and expenses directly to the Fund[s].The Fund[s] may have to pay some of these fees and expenses, which will therefore reduce the value of yourinvestment in [the/a] Fund."

(3) Include the fees for any optional services provided by the mutual fund organization, as described by Item 15, inthe table.

(4) If management fees are payable directly by investors, add a line item in the table to disclose the maximumpercentage that could be paid by investors.

(5) If the manager permits negotiation of a management fee rebate, provide disclosure of these arrangements. If thesearrangements are not available for all mutual funds described in the fund summary, make this disclosure in thedescription of fees and expenses required for each fund by Item 6.2 and include a cross-reference to that table inthe table required by this Item.

Fees and Expenses Payable by the Fund[s]
Management Fees unique to each fund - see fund-specific information [disclosurere management fee rebate program]
Operating Expenses Fund[s] pay[s]s all operating expenses [except for _____ ]
Fees and Expenses Payable Directly by You
Sales Charges [specify percentage, as a percentage of _____ ]
Transfer Fees [specify percentage, as a percentage of _____ , or specifyamount]
Redemption Fees [specify percentage, as a percentage of _____ , or specifyamount]
Registered Tax Plan Fees [include thisdisclosure and specify the type of fees if theregistered tax plan is sponsored by themutual fund and is described in the fundsummary] [specify amount]
Other Fees and Expenses [specify type] [specify amount]

INSTRUCTIONS:

(1) Describe that the mutual funds pay all operating expenses of the funds and list any of such expenses that themutual funds are not required to pay. For example, if the manager of the mutual funds pays custodian fees, listthese fees as an exception to the statement that the mutual funds pay all operating expenses. If the mutual fundspay only certain operating expenses and are not responsible for payment of all such expenses, adjust the statementin the table to reflect the proper contractual responsibility of the mutual funds. If each of the mutual funds describedin the fund summary has a different obligation to pay operating expenses, state that the operating expenses payableby the funds are fund-specific and include the description of the operating expenses payable by each fund as aseparate line item in the table required for each fund by Item 6.2 and include a cross-reference to that table.

(2) Show all fees or expenses payable by the mutual fund, even if it is expected that the manager of the mutual fundor other member of the organization of the mutual fund will waive or absorb some or all of such fees and expenses.

16.2 Illustrations of Different Purchase Options

(1) Provide under the sub-heading "Impact of Fees on Your Investment" the following table or tables, appropriatelycompleted, and introduced using substantially the following words:

"The following table[s] show[s] the impact that the fees associated with different purchase options have on an investmentof $1,000 in [the/a] Fund, if held in the Fund for one, three, five or ten years, assuming

a 5% annual return on your investment, net of expenses. The actual returns of [the/any] Fund for any year may be moreor less than 5%.

the redemption of all Fund [units/shares] occurs at the end of each period.

[The [first] table shows the impact of fees and expenses if [units/shares] are purchased under the sales charge option[, /and]the [second] table if the redemption charge option is selected [./and] the [third] table if [units/shares] are purchased on a no-load basis.]"

Sales Charge Option

  After 1 Year After 3 Years After 5 Years After 10 Years
Opening value of your investment(1) $
---
---
---
Cumulative Fund return $ $ $ $
Value of your investment beforeredemption $ $ $ $
Amount paid to you $ $ $ $

(1) The opening value of your investment is determined by taking the assumed investment of $1,000 and deducting from it the sum of $, which representsthe maximum sales charge that may be payable by you.

Redemption Charge Option

  After 1 Year After 3 Years After 5 Years After 10 Years
Opening value of yourinvestment $1,000
---
---
---
Cumulative Fund return $ 50 $ $ $
Value of your investmentbefore redemption $1,050 $ $ $
Applicable redemptioncharge(3) $ $ $ $
Amount paid to you $ $ $ $

(3) Redemption charges may apply only if you redeem your [units/shares] in a particular year. Redemption charges are shown under"Fees and Expenses" above.

No-Load Option

(2) If the mutual fund or mutual funds can be purchased through a purchase option that is not reflected in any of theabove tables, disclose the effect of that purchase option in the form of a table substantially similar to the abovetables, and include explanatory footnotes to that table, as appropriate.

(3) In preparing the table or tables contemplated by this Item

(a) use a hypothetical investment of $1,000 that will be held for one, three, five and 10 years;

(b) assume a return of five percent per annum, net of expenses;

(c) assume that the mutual fund's management expense ratio is 2.5 percent per annum throughout therelevant 10 year period, and that management fees are deducted at the end of each year based upon thevalue of the mutual fund at that time;

(d) present the opening value of an investor's investment, any increase in the value of that investment basedon the mutual fund's assumed annual return, and the remaining value of the investment at the end of eachof the time periods referred to in paragraph (a);

(e) in determining the opening value of an investment under a sales charge option, assume that the maximumsales commission disclosed in the fund summary is paid by the investor; and

(f) provide the required information to the nearest dollar.

INSTRUCTION:

It is only necessary to disclose the table or tables that apply to the purchase options offered by the mutual fund(s).

Item 17 Dealer Compensation

Provide, under the heading "Dealer Compensation", the disclosure of sales practices and equity interests required bysections 8.1 and 8.2 of National Instrument 81-105.

INSTRUCTIONS:

(1) Briefly state the compensation paid and the sales practices followed by the members of the organization of themutual funds in a concise and explicit manner, without explaining the requirements and parameters for permittedcompensation contained in National Instrument 81-105.

(2) For example, if the manager of the mutual fund pays an up-front sales commission to participating dealers, so stateand include the range of commissions paid. If the manager permits participating dealers to retain the salescommissions paid by investors as compensation, so state and include the range of commissions that can beretained. If the manager or another member of the mutual fund's organization pays trailing commissions, so statethis fact and provide an explanation of the basis of calculation of these commissions and the range of the rates ofsuch commissions. If the mutual fund organization from time to time pays the permitted marketing expenses ofparticipating dealers on a co-operative basis, so state. If the mutual fund organization from time to time holdseducational conferences to which sales representatives of participating dealers may attend or from time to time payscertain of the expenses incurred by participating dealers in holding educational conferences for salesrepresentatives, so state.

(3) If the members of the organization of the mutual funds follow any other sales practices permitted by NationalInstrument 81-105, briefly describe these sales practices.

(4) Include a brief summary of the equity interests between the members of the organization of the mutual funds andparticipating dealers as required by section 8.2 of National Instrument 81-105. This disclosure may be provided byway of a diagram or table.

Item 18 Income Tax Considerations for Investors

(1) Briefly describe under the heading "Income Tax Considerations for Investors" the income tax consequences forinvestors of income and capital gains distributions made by the mutual fund, as well as the gains or losses thatoccur on the disposition of securities of the mutual fund by the investor.

(2) This description shall explain the different tax treatment applicable to mutual fund securities held in a registeredtax plan as compared to mutual fund securities held in non-registered accounts.

(3) Describe the impact of the mutual fund's distribution policy on a taxable investor who acquires securities of themutual fund late in a calendar year.

(4) If material, describe the potential impact of the mutual fund's anticipated portfolio turnover rate on a taxableinvestor.

Item 19: Statement of Rights

Provide a brief explanation, under the heading "What are your Legal Rights?", of an investor's statutory rights of rescissionand damages, including the right of action for misrepresentations contained in the fund summary and in any documentsincorporated by reference into the fund summary, in substantially the following words:

"Securities legislation in some provinces gives you the right to withdraw from an agreement to buy mutual fundswithin two business days of receiving the Fund Summary or Fund Prospectus, or to cancel your purchase within48 hours of receiving confirmation of your order.

Securities legislation in some provinces and territories also have laws that allow you to cancel an agreement to buyfind [units/shares] and get your money back, or to make a claim for damages, if the Fund Summary, FundProspectus or financial statements misrepresent any facts about the Fund. These rights must usually be exercisedwithin certain time limits.

For more information, refer to the securities law of your province or territory or consult your lawyer."

Item 20: Back Cover

(1) State on the back cover the name of the mutual fund or funds included in the fund summary or the mutual fundfamily, as well as the name, address and telephone number of the manager of the mutual fund or funds.

(2) State, in substantially the following words:

" Additional information about the Fund[s] is available in the Fund['s/s'] Fund Prospectus and financialstatements. These documents are incorporated by reference into this Fund Summary, which means thatthey legally form part of this document just as if they were printed as a part of this document.

You can get a copy of the Fund['s/s'] Prospectus and financial statements, including a statement ofportfolio transactions, at no cost by calling [toll-free/collect] [insert toll-free telephone number or telephonenumber where collect calls are accepted, as required by section 3.4 of the Instrument], or from yourfinancial adviser or by e-mail at [insert e-mail address].

These documents and other information about the Fund[s], such as information circulars and materialcontracts, are also available [on the [insert name of mutual fund manager] Internet site at [insert fund'sInternet site] or] on the Internet site of SEDAR (the System for Electronic Document Analysis andRetrieval) at http://www.sedar.com."

1. The references in proposed National Instrument 81-102 Mutual Funds ("NI81-102") will be changed from "simplified prospectus" to "fundsummary".

2. In the Notice, the Canadian Securities Administrators (the "CSA") seek comment on whether mandatory or optional suitability disclosure isappropriate. The CSA note that, in the U.S., disclosure of suitability is optional in the risk/return summary to be contained in the fund profile andprospectus.

3. Paragraph 5.1(1)(c) of NI81-102 provides that the approval of securityholders of a mutual fund must be obtained before any change is made tothe fundamental investment objectives of the mutual fund. That section of that proposed Instrument will be amended to clarify that, for that purpose,the fundamental investment objectives of a mutual fund are those set out in response to this Item.

4. This requirement is currently found in section 16.1 of NI81-102, and will be deleted from NI81-102 when that proposed Instrument is next revised.

5. The performance data required to be disclosed under this Item is to be derived in accordance with the requirements contained in NI81-102. Thoseprovisions will be revised as necessary in order to be consistent with the proposed Instrument and this Form. In addition, the rules for calculatingmanagement expense ratio will be moved into NI81-102 from the proposed Instrument, and appropriate changes made to the performance datarules in NI81-102 to reflect the approach taken in the proposed Instrument regarding the calculation of the management expense ratio.

6. Paragraph 15.4(1)(a)(i) of NI81-102 prohibits a mutual fund from including performance data in sales communications unless the mutual fund hasoffered securities under a prospectus or simplified prospectus in a jurisdiction for at least one completed financial year.

7. The language in this subsection refers to the net asset value per security instead of the initial value and redeemable value. A corresponding changewill be made to the language used in NI81-102.

8. Subsection 15.5(5) of NI81-102 requires that the redeemable value and initial value of securities of a mutual fund must be determined by applyingassumptions to a hypothetical securityholder account in certain circumstances. Subsection 15.5(1) of NI81-102 sets out the general assumptionsthat are to be made in the calculation of standard performance data of a mutual fund. Subsection 15.5(6) of NI81-102 provides that the calculationof total return for a mutual fund may be simplified by assuming a hypothetical investment of one security of the mutual fund in the manner set outin that subsection, in certain circumstances.

9. Paragraph 15.4(1)(i) of NI81-102 applies if any of a number of stipulated changes (such as changes in the management of the mutual fund,changes in fees and charges or any major reorganization of the mutual fund) have occurred during the performance measurement period that couldhave materially affected the performance of the mutual fund. Paragraph 15.4(1)(i) prohibits a sales communication pertaining to a mutual fund fromcontaining related performance data unless the sales communication contains summary disclosure of those changes.

10. Paragraph 15.4(1)(j) of NI81-102 permits disclosure of only very recent seven day performance data for money market funds. This Form, consistentwith this approach, does not permit disclosure of past performance data for money market funds, except as permitted under Item 11.1. The CSAare of the view that a bar chart prepared in accordance with Item 11.1 is useful disclosure in respect of money market funds in order to illustrateto investors the changes that are possible from year to year in the performance of money market funds.

11. The information contained in this table is presented in reverse chronological order; parallel changes will be made to the advertising requirementsof NI81-102.

12. Subsection 15.5(4) of NI81-102 defines the terms "standard performance data", "current yield", "effective yield", "seven day return" and "totalreturn". Subsection 15.5(3) of NI81-102 describes the factors on which the calculation of standard performance data must be based. Paragraph15.5(7)(a) of NI81-102 states that standard performance data for a mutual fund other than a money market fund shall be calculated to the nearestone-tenth of one percent.

13. This provision reflects the method of calculating the issue price and redemption price described in sections 9.3 and 10.3, respectively, of NI81-102.