Orbit Mutual Fund Management Ltd. - MRRS Decision

MRRS Decision

Headnote

Exemptive Relief Application - Extension of lapse date to provide resolution of QC (PR) issuer concerning the Trust.

Statutes Cited

Securities Act, R.S.O. 1990, c.S.5., as am., s. 62(5).

IN THE MATTER OF

THE SECURITIES LEGISLATION OF

QUÉBEC, BRITISH COLUMBIA, ALBERTA AND ONTARIO

AND

IN THE MATTER OF

THE MUTUAL RELIANCE REVIEW SYSTEM FOR

EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

ORBIT MUTUAL FUND MANAGEMENT LIMITED

ORBIT WORLD FUND,

ORBIT CANADIAN EQUITY FUND AND

ORBIT NORTH AMERICAN EQUITY FUND

MRRS DECISION DOCUMENT

WHEREAS the local securities regulatory authority or regulator (the "Decision Maker") in each of the Provincesof Québec, British Columbia, Alberta and Ontario (the "Jurisdictions") has received an application (the "Application") fromOrbit Mutual Fund Management Limited ("Orbit" or the "Manager"), Orbit World Fund, Orbit Canadian Equity Fund andOrbit North American Equity Fund (collectively, the "Funds") for a decision, pursuant to the securities legislation of theJurisdictions (the "Legislation"), extending the lapse date prescribed by the Legislation for the filing of the Funds finalsimplified prospectus and final annual information form up to March 31st, 2001 inclusively in order to enable them tocontinue the distribution of their securities beyond the Lapse Date (as defined in paragraph 4 below) of their simplifiedprospectus dated February 25th, 2000 (the "Current Prospectus");

AND WHEREAS pursuant to the Mutual Reliance Review System for Exemptive Relief Applications (the"System"), the Québec Securities Commission is the principal regulator for this application;

AND WHEREAS it has been represented by the Manager to the Decision Makers that:

1. Orbit is a corporation established under the laws of Canada. It is the Manager, the Trustee and the Promoterof the Funds.

2. The Funds are open-ended mutual fund trusts established under the laws of the Province of Ontario by wayof declarations of trust.

3. The Funds are a reporting issuers under the Legislation and are not default of any of the requirements of theLegislation or the regulations made thereunder.

4. The Funds'securities are currently distributed to the public in all the Jurisdictions pursuant to the CurrentProspectus. The lapse date is February 25th, 2001 (British Columbia and Alberta) in certain Jurisdictions andMarch 11th, 2001 (Québec and Ontario) in certain other Jurisdictions (collectively, the "Lapse Date"), and thelatest date for the filing of the final simplified prospectus and final annual information form is February 25th, 2001in British Columbia and Alberta and March 11th, 2001 in Québec and Ontario.

5. Since the date of the Current Prospectus, no material change has occurred in respect of the Funds and noamendments have been made to the Prospectus.

6. In order that it may be determined if Orbit, acting as Trustee of the Funds, is governed or not by the TrustCompanies and Savings Companies Act (R.S.Q., chapter S-29.01) the Manager has requested for an extensionof the Lapse Date up to March 31st, 2001 inclusively.

AND WHEREAS pursuant to the System this MRRS Decision Document evidences the decision of eachDecision Maker (collectively, the "Decision");

AND WHEREAS each of the Decision Makers is satisfied that the test contained in the Legislation that providesthe Decision Maker with the jurisdiction to make the Decision has been met;

THE DECISION of the Decision Makers pursuant to the Legislation is that the Lapse Date, is hereby extendedup to March 31st, 2001 inclusively and that the distribution of the securities of the Funds may continue provided that:

(a) a receipt for the final simplified prospectus is obtained from the Decision Makers within 20 days after March 31st,2001 inclusively;

(b) all unitholders of record of the Funds in Alberta and in British Columbia (the "Affected Unitholders") whopurchased units of any Fund after the Lapse Date and before the date of this Decision Document are providedwith the right (the "Cancellation Right") to cancel such trades within 90 days of the receipt of a statement (the"Statement") describing the Cancellation Right, which is to be mailed by Orbit to Affected Unitholders and toreceive, upon the exercise of a Cancellation Right the purchase price paid on the acquisition of such units andall fees and expenses incurred in effecting such purchase (the net asset value per unit on the date of such apurchase by an Affected Unitholder is hereinafter defined as the "Purchase Price per Unit");

(c) Orbit mails the Statement and a copy of this Order to Affected Unitholders no later than 10 business days afterthe date of this Order; and

(d) if the net asset value per unit of the relevant Fund on the date that an Affected Unitholder exercises theCancellation Right is less than the Purchase Price per Unit, Orbit shall reimburse the relevant Fund thedifference between the Purchase Price per Unit and the net asset value per unit on the date on which suchAffected Unitholder exercises the Cancellation Right.

March 9, 2001.

"Jean-François Bernier"