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Canada Life Investment Management Ltd. et al.
Headnote
National Policy 11-203 Process for Exemptive Relief Applications in Multiple Jurisdictions – relief granted under subsection 62(5) of the Securities Act to permit extension of funds’ prospectus lapse date by 155 days to allow combination of the funds’ prospectus with the prospectus of other funds under common management – no conditions.
Applicable Legislative Provisions
Securities Act, R.S.O. 1990, c. S.5, as am., s. 62(5).
February 15, 2022
IN THE MATTER OF THE SECURITIES LEGISLATION OF ONTARIO (the Jurisdiction)
AND
IN THE MATTER OF THE PROCESS FOR EXEMPTIVE RELIEF APPLICATIONS IN MULTIPLE JURISDICTIONS
AND
IN THE MATTER OF CANADA LIFE INVESTMENT MANAGEMENT LTD. (the Filer)
AND
CANADA LIFE FLOATING RATE INCOME FUND
CANADA LIFE STRATEGIC INCOME FUND
CANADA LIFE GLOBAL BALANCED FUND
CANADA LIFE CANADIAN DIVIDEND FUND
CANADA LIFE CANADIAN FOCUSED GROWTH FUND
CANADA LIFE US ALL CAP GROWTH FUND
CANADA LIFE FOREIGN EQUITY FUND (collectively, the Funds)
Decision
Background
The principal regulator in the Jurisdiction has received an application from the Filer on behalf of the Funds for a decision under the securities legislation of the Jurisdiction (the Legislation) that the time limits for the renewal of the simplified prospectus of the Funds dated March 17, 2021 be extended to those time limits that would apply as if the lapse date was August 19, 2022. (the Requested Relief) Under the Process for Exemptive Relief Applications in Multiple Jurisdictions (for a passport application):
(a) The Ontario Securities Commission is the principal regulator for this application; and
(b) The Filer has provided notice that section 4.7(1) of Multilateral Instrument 11-102 Passport System (MI 11-102) is intended to be relied upon in each of the other provinces and territories of Canada (together with Ontario, the Jurisdictions).
Interpretation
Terms defined in National Instrument 14-101 Definitions and MI 11-102 have the same meaning if used in this decision, unless otherwise defined.
Representations
This decision is based on the following facts represented by the Filer:
1. The head office of the Filer is located in London, Ontario. The Filer is a corporation governed under the laws of Canada. The Filer is a wholly-owned subsidiary of The Canada Life Assurance Company.
2. The Filer is registered as a portfolio manager in each province and territory of Canada and as an investment fund manager in each of Ontario, Québec and Newfoundland and Labrador. The Filer is registered as a commodity trading manager in Ontario.
3. Each of the Funds and each of the funds listed in Schedule A (the Other Funds) is a reporting issuer in the Jurisdictions.
4. Neither the Filer, nor any of the Funds or the Other Funds, are in default of securities legislation in any of the Jurisdictions.
5. The Filer is the manager and trustee of the Funds. The Filer is also the manager and trustee of the Other Funds listed in Schedule A.
6. Each Fund currently distributes its securities in the Jurisdictions pursuant to a simplified prospectus dated March 17, 2021, as amended by amendment no. 1 dated August 19, 2021, and an annual information form dated March 17, 2021, as amended by amendment no. 1 dated August 19, 2021 (collectively, the Current Prospectus). Each of the Other Funds currently distributes its securities in the Jurisdictions pursuant to the simplified prospectuses and annual information forms set forth in Schedule A.
7. The lapse date of the Current Prospectus under the Legislation is March 17, 2022 (the Current Lapse Date). Accordingly, under the Legislation, the distribution of securities of the Funds would have to cease on the Current Lapse Date unless: (i) the Funds file a pro forma simplified prospectus at least 30 days prior to the Current Lapse Date; (ii) the final simplified prospectus is filed no later than 10 days after the Current Lapse Date; and (iii) a receipt for the final simplified prospectus is obtained within 20 days after the Current Lapse Date.
8. The respective lapse dates of the current prospectuses of the Other Funds under the Legislation are August 19, 2022, September 8, 2022 and January 13, 2023.
9. The Filer wishes to combine the simplified prospectuses of the Other Funds with the Current Prospectus of the Funds in order to reduce renewal, printing and related costs of the Funds and the Other Funds. Offering the Funds and the Other Funds under one prospectus would facilitate the distribution of the Funds in the Jurisdictions under the same simplified prospectus and enable the Filer to streamline disclosure across the Filer’s fund platform. As the Funds and the Other Funds are managed by the Filer, offering them under the same simplified prospectus would allow investors to more easily compare the features of the Funds and the Other Funds.
10. It is the Filer’s intention to renew the simplified prospectus of the Funds and the Other Funds under the new Form 81-101F1, which will combine and streamline the existing disclosure in the simplified prospectus and annual information form into one document. As the simplified prospectuses, annual information forms and fund facts documents (together, the Prospectus Documents) of the Other Funds are very large documents and there is an in-depth internal review process that the Filer will need to undertake as part of both its customary annual review and to comply with the new requirements of Form 81-101F1, the Filer will not have sufficient time to finalize and file the final Prospectus Documents of the Other Funds by March 27, 2022, being the deadline to file the final Prospectus Documents of the Funds.
11. It would be impractical to alter and modify all the dedicated systems, procedures and resources required to prepare the Prospectus Documents of the Other Funds, and unreasonable to incur the costs and expenses associated therewith, so that the Prospectus Documents of the Other Funds can be filed earlier with the Prospectus Documents of the Funds.
12. The Filer may make minor changes to the features of the Other Funds as part of the process of renewing the Other Funds’ Prospectus Documents in July or August 2022. The ability to file the Prospectus Documents of the Funds with those of the Other Funds will ensure that the Filer can make the operational and administrative features of the Funds and the Other Funds consistent with each other, if necessary.
13. There have been no material changes in the affairs of the Funds since the date of the Current Prospectus. Accordingly, the Current Prospectus and the fund facts documents represent the current information of the Funds.
14. Given the disclosure obligation of the Funds, should any material changes occur, the Current Prospectus of the Funds will be amended as required under the Legislation.
15. New investors of the Funds will receive delivery of the most recently filed fund facts document of the Funds. The Current Prospectus of the Funds will still be available upon request.
16. The Requested Relief will not affect the accuracy of the information contained in the Current Prospectus of the Funds and therefore will not be prejudicial to the public interest.
Decision
The principal regulator is satisfied that the decision meets the test set out in the Legislation for the principal regulator to make the decision.
The decision of the principal regulator under the Legislation is that the Requested Relief is granted.
“Darren McKall”
Manager, Investment Funds and Structured Products
Ontario Securities Commission
Application File #: 2022/0065
SCHEDULE A
THE OTHER FUNDS
other funds with AUGUST 19, 2022 lapse date:
SIMPLIFIED PROSPECTUS DATED august 19, 2021, AS AMENDED BY AMENDMENT NO. 1 DATED November 10, 2021
Fixed Income Funds
Canada Life Money Market Fund
Canada Life Pathways Money Market Fund
Canada Life Short-Term Bond Fund
Canada Life Canadian Core Bond Fund
Canada Life Pathways Core Bond Fund
Canada Life Canadian Core Plus Bond Fund
Canada Life Pathways Core Plus Bond Fund
Canada Life Canadian Tactical Bond Fund
Canada Life Pathways Global Core Plus Bond Fund
Canada Life Canadian Corporate Bond Fund
Canada Life North American High Yield Fixed Income Fund
Canada Life Unconstrained Fixed Income Fund
Canada Life Sustainable Global Bond Fund
Canada Life Global Multi-Sector Fixed Income Fund
Canada Life Pathways Global Multi Sector Bond Fund
Canadian Balanced Funds
Canada Life Canadian Fixed Income Balanced Fund
Canada Life Canadian Income Fund
Canada Life Monthly Income Fund
Canada Life Canadian Value Balanced Fund
Canada Life Canadian Growth Balanced Fund
Canada Life Canadian Stock Balanced Fund
Global Balanced Funds
Canada Life Global Monthly Income Fund
Canada Life Global Growth and Income Fund
Canada Life Global Value Balanced Fund
Canada Life Global Growth Balanced Fund
Canada Life Global Growth Opportunities Balanced Fund
Canadian Equity Funds
Canada Life Canadian Low Volatility Fund
Canada Life Canadian Core Dividend Fund
Canada Life Canadian Focused Dividend Fund
Canada Life Canadian Equity Fund
Canada Life Pathways Canadian Equity Fund
Canada Life Canadian Value Fund
Canada Life Canadian Growth Fund
Canada Life Pathways Canadian Concentrated Equity Fund
Canada Life Canadian Focused Value Fund
Canada Life Canadian Small-Mid Cap Fund
U.S. Equity Funds
Canada Life U.S. Low Volatility Fund
Canada Life U.S. Dividend Fund
Canada Life American Value Fund
Canada Life U.S. Value Fund
Canada Life U.S. Growth Fund
Canada Life Sustainable U.S. Equity Fund
Canada Life Pathways US Equity Fund
Canada Life Pathways US Concentrated Equity Fund
Canada Life U.S. Mid Cap Growth Fund
Global and Regional Equity Funds
Canada Life Global Low Volatility Fund
Canada Life Global Dividend Fund
Canada Life Sustainable Global Equity Fund
Canada Life Global All Cap Equity Fund
Canada Life Global Founders Fund
Canada Life Global Growth Equity Fund
Canada Life International Equity Fund
Canada Life International Growth Fund
Canada Life Pathways International Equity Fund
Canada Life Pathways International Concentrated Equity Fund
Canada Life Global Small-Mid Cap Growth Fund
Canada Life Pathways Emerging Markets Large Cap Equity Fund
Canada Life Pathways Emerging Markets Equity Fund
Canada Life Pathways Global Tactical Fund
Sector Funds
Canada Life Global Infrastructure Fund
Canada Life Global Real Estate Fund
Canada Life North American Specialty Fund
Canada Life Science and Technology Fund
Managed Solutions
Canada Life Diversified Fixed Income Portfolio
Canada Life Conservative Portfolio
Canada Life Moderate Portfolio
Canada Life Balanced Portfolio
Canada Life Advanced Portfolio
Canada Life Aggressive Portfolio
Canada Life Risk-Managed Conservative Income Portfolio
Canada Life Risk-Managed Balanced Portfolio
Canada Life Risk-Managed Growth Portfolio
Canada Life Sustainable Conservative Portfolio
Canada Life Sustainable Balanced Portfolio
Canada Life Sustainable Growth Portfolio
other fund with SEPTEMBER 8, 2022 lapse date:
SIMPLIFIED PROSPECTUS DATED SEPTEMBER 8, 2021
Sector Fund
Canada Life Global Resources Fund
other fundS with january 13, 2023 lapse date:
SIMPLIFIED PROSPECTUS DATED JANUARY 13, 2022
U.S. Equity Fund
Canada Life U.S. Small-Mid Cap Growth Fund
Global and Regional Equity Funds
Canada Life Global Growth Opportunities Fund
Canada Life European Equity Fund
Canada Life Emerging Markets Equity Fund
Sector Fund
Canada Life Precious Metals Fund