Exemption from the requirement to deliver comparativeannual financial statements for the year ending December 31,2002 to registered securityholders of certain mutual funds.
Securities Act (Ontario), R.S.O. 1990 c. S.5,as am., ss. 79 and 80(b)(iii).
IN THE MATTER OF
THE SECURITIES LEGISLATIONOF
BRITISH COLUMBIA, ALBERTA,SASKATCHEWAN, MANITOBA,
ONTARIO, QUEBEC, NOVA SCOTIAAND
NEWFOUNDLAND AND LABRADOR
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEWSYSTEM
FOR EXEMPTIVE RELIEF APPLICATIONS
IN THE MATTER OF
CIBC CANADIAN SHORT-TERM BONDINDEX FUND, CIBC CANADIAN T-BILL FUND, CIBC MONEY MARKET FUND,CIBC PREMIUM CANADIAN T-BILL FUND, CIBC U.S DOLLAR MONEY MARKETFUND, CIBC BALANCED FUND, CIBC CANADIAN BOND FUND, CIBC DIVIDENDFUND, CIBC GLOBAL BOND FUND, CIBC MORTGAGE FUND, CIBC CANADIANINDEX FUND, CIBC CORE CANADIAN EQUITY FUND, CIBC GLOBAL EQUITYFUND, CIBC U.S. EQUITY INDEX FUND, CIBC U.S. INDEX RRSP FUND,CIBC CANADIAN RESOURCES FUND, CIBC CAPITAL APPRECIATION FUND,CIBC ENERGY FUND, CIBC INTERNATIONAL INDEX RRSP FUND, CIBC NORTHAMERICAN DEMOGRAPHICS FUND, CIBC EUROPEAN EQUITY FUND, CIBCFAR EAST PROSPERITY FUND, CIBC GLOBAL TECHNOLOGY FUND, CIBCEMERGING ECONOMIES FUND, CIBC PRECIOUS METALS FUND, CIBC JAPANESEEQUITY FUND, CIBC LATIN AMERICAN FUND, CIBC U.S. SMALL COMPANIESFUND, CIBC CANADIAN EMERGING COMPANIES FUND, CIBC CANADIAN SMALLCOMPANIES FUND, CANADIAN IMPERIAL EQUITY FUND, CIBC CANADIANBOND INDEX FUND, CIBC CANADIAN REAL ESTATE FUND, CIBC FINANCIALCOMPANIES FUND, CIBC INTERNATIONAL SMALL COMPANIES FUND, CIBCINTERNATIONAL INDEX FUND, CIBC GLOBAL BOND INDEX FUND, CIBCEUROPEAN INDEX FUND, CIBC MONTHLY INCOME FUND, CIBC NASDAQ INDEXRRSP FUND, CIBC JAPANESE INDEX RRSP FUND, CIBC EUROPEAN INDEXRRSP FUND, CIBC ASIA PACIFIC INDEX FUND, CIBC EMERGING MARKETSINDEX FUND, CIBC HIGH YIELD CASH FUND, CIBC NASDAQ INDEX FUND,5-YEAR PROTECTED BALANCED INDEX FUND, 5-YEAR PROTECTED CANADIANBOND INDEX FUND, 5-YEAR PROTECTED CANADIAN INDEX FUND, 5-YEARPROTECTED INTERNATIONAL INDEX FUND, 5-YEAR PROTECTED U.S. INDEXFUND, CIBC MANAGED INCOME PORTFOLIO, CIBC MANAGED INCOME PLUSPORTFOLIO, CIBC MANAGED BALANCED PORTFOLIO, CIBC MANAGED BALANCEDGROWTH PORTFOLIO, CIBC MANAGED BALANCED GROWTH RRSP PORTFOLIO,CIBC MANAGED GROWTH PORTFOLIO, CIBC MANAGED GROWTH RRSP PORTFOLIO,CIBC MANAGED AGGRESSIVE GROWTH PORTFOLIO, CIBC MANAGED AGGRESSIVEGROWTH RRSP PORTFOLIO, CIBC U.S. DOLLAR MANAGED INCOME PORTFOLIO,CIBC U.S. DOLLAR MANAGED GROWTH PORTFOLIO, CIBC U.S. DOLLARMANAGED BALANCED PORTFOLIO, RENAISSANCE CANADIAN SMALL CAP FUND,RENAISSANCE U.S. FUNDAMENTAL GROWTH FUND, RENAISSANCE INTERNATIONALRSP INDEX FUND, RENAISSANCE U.S. RSP INDEX FUND, RENAISSANCEEURO FUND, RENAISSANCE GLOBAL VALUE FUND, RENAISSANCE INTERNATIONALGROWTH FUND, RENAISSANCE DEVELOPING CAPITAL MARKETS FUND, RENAISSANCECANADIAN MONEY MARKET FUND, RENAISSANCE CANADIAN BALANCED FUND,RENAISSANCE CANADIAN T-BILL FUND, RENAISSANCE CANADIAN HIGHYIELD BOND FUND, RENAISSANCE CANADIAN GROWTH FUND, RENAISSANCEU.S. MONEY MARKET FUND, RENAISSANCE CANADIAN CORE VALUE FUND,RENAISSANCE CANADIAN BOND FUND, RENAISSANCE CANADIAN INCOMETRUST FUND, RENAISSANCE GLOBAL GROWTH FUND, RENAISSANCE U.S.BASIC VALUE FUND, RENAISSANCE CANADIAN BALANCED VALUE FUND,RENAISSANCE GLOBAL SECTORS FUND, RENAISSANCE GLOBAL SECTORSRSP FUND, RENAISSANCE GLOBAL VALUE RSP FUND, RENAISSANCE INTERNATIONALGROWTH RSP FUND, RENAISSANCE GLOBAL TECHNOLOGY FUND, RENAISSANCEGLOBAL TECHNOLOGY RSP FUND, RENAISSANCE TACTICAL ALLOCATIONRSP FUND, RENAISSANCE GLOBAL GROWTH RSP FUND, RENAISSANCE TACTICALALLOCATION FUND, RENAISSANCE CANADIAN DIVIDEND INCOME FUND,RENAISSANCE GLOBAL OPPORTUNITIES FUND, RENAISSANCE GLOBAL OPPORTUNITIESRSP FUND, FRONTIERS CANADIAN FIXED INCOME POOL, FRONTIERS CANADIANSHORT TERM INCOME POOL, FRONTIERS CANADIAN EQUITY POOL, FRONTIERSINTERNATIONAL EQUITY POOL, FRONTIERS EMERGING MARKETS EQUITYPOOL, FRONTIERS GLOBAL BOND POOL, FRONTIERS INTERNATIONAL EQUITYRSP POOL, FRONTIERS U.S. EQUITY POOL, FRONTIERS U.S. EQUITYRSP POOL, TALVEST MONEY MARKET FUND, TALVEST BOND FUND, TALVESTGLOBAL BOND RSP FUND, TALVEST DIVIDEND FUND, TALVEST EUROPEANFUND, TALVEST INCOME FUND, TALVEST VALUE LINE U.S. EQUITY FUND,TALVEST GLOBAL RSP FUND, TALVEST CDN. ASSET ALLOCATION FUND,TALVEST GLOBAL ASSET ALLOCATION RSP FUND, TALVEST ASIAN FUND,TALVEST CDN. EQUITY GROWTH FUND, TALVEST GLOBAL SCIENCE &TECHNOLOGY FUND, TALVEST HIGH YIELD BOND FUND, TALVEST GLOBALHEALTH CARE FUND, TALVEST SMALL CAP CDN. EQUITY FUND, TALVESTCDN. EQUITY LEADERS FUND, TALVEST MILLENNIUM HIGH INCOME FUND,TALVEST MILLENNIUM NEXT GENERATION FUND, TALVEST GLOBAL SMALLCAP FUND, TALVEST CHINA PLUS FUND, TALVEST GLOBAL EQUITY FUND,TALVEST FPX INCOME FUND, TALVEST FPX GROWTH FUND, TALVEST GLOBALMULTI MANAGEMENT RSP FUND, TALVEST FPX BALANCED FUND, TALVESTGLOBAL MULTI MANAGEMENT FUND, TALVEST CHINA PLUS RSP FUND, TALVESTGLOBAL EQUITY RSP FUND, TALVEST GLOBAL SMALL CAP RSP FUND, TALVESTGLOBAL SCIENCE & TECHNOLOGY RSP FUND, TALVEST GLOBAL HEALTHCARE RSP FUND, TALVEST INTERNATIONAL EQUITY RSP FUND, TALVESTCDN. MULTI MANAGEMENT FUND, TALVEST INTERNATIONAL EQUITY FUND,TALVEST ASIAN RSP FUND, TALVEST EUROPEAN RSP FUND, TALVEST VALUELINE U.S. EQUITY RSP FUND, TALVEST GLOBAL RESOURCES RSP FUNDAND TALVEST GLOBAL RESOURCE FUND.
MRRS DECISION DOCUMENT
WHEREAS the Canadian securities regulatoryauthority or regulator (the "Decision Maker")in each of the Provinces of British Columbia, Alberta, Saskatchewan,Manitoba, Ontario, Québec, Nova Scotia and Newfoundlandand Labrador (the "Jurisdictions") has receivedan application (the "Application") from CanadianImperial Bank of Commerce ("CIBC"), CIBC SecuritiesInc., CIBC Asset Management Inc. and Talvest Fund ManagementInc. ("Talvest") (collectively, the "Managers"),CIBC Canadian Short-Term Bond Index Fund, CIBC Canadian T-BillFund, CIBC Money Market Fund, CIBC Premium Canadian T-Bill Fund,CIBC U.S Dollar Money Market Fund, CIBC Balanced Fund, CIBCCanadian Bond Fund, CIBC Dividend Fund, CIBC Global Bond Fund,CIBC Mortgage Fund, CIBC Canadian Index Fund, CIBC Core CanadianEquity Fund, CIBC Global Equity Fund, CIBC U.S. Equity IndexFund, CIBC U.S. Index RRSP Fund, CIBC Canadian Resources Fund,CIBC Capital Appreciation Fund, CIBC Energy Fund, CIBC InternationalIndex RRSP Fund, CIBC North American Demographics Fund, CIBCEuropean Equity Fund, CIBC Far East Prosperity Fund, CIBC GlobalTechnology Fund, CIBC Emerging Economies Fund, CIBC PreciousMetals Fund, CIBC Japanese Equity Fund, CIBC Latin AmericanFund, CIBC U.S. Small Companies Fund, CIBC Canadian EmergingCompanies Fund, CIBC Canadian Small Companies Fund, CanadianImperial Equity Fund, CIBC Canadian Bond Index Fund, CIBC CanadianReal Estate Fund, CIBC Financial Companies Fund, CIBC InternationalSmall Companies Fund, CIBC International Index Fund, CIBC GlobalBond Index Fund, CIBC European Index Fund, CIBC Monthly IncomeFund, CIBC Nasdaq Index RRSP Fund, CIBC Japanese Index RRSPFund, CIBC European Index RRSP Fund, CIBC Asia Pacific IndexFund, CIBC Emerging Markets Index Fund, CIBC High Yield CashFund, CIBC Nasdaq Index Fund (collectively, the "CIBCFunds"), CIBC Managed Income Portfolio, CIBC ManagedIncome Plus Portfolio, CIBC Managed Balanced Portfolio, CIBCManaged Balanced Growth Portfolio, CIBC Managed Balanced GrowthRRSP Portfolio, CIBC Managed Growth Portfolio, CIBC ManagedGrowth RRSP Portfolio, CIBC Managed Aggressive Growth Portfolio,CIBC Managed Aggressive Growth RRSP Portfolio (collectively,the "Managed Funds"), CIBC U.S. Dollar ManagedIncome Portfolio, CIBC U.S. Dollar Managed Growth Portfolio,CIBC U.S. Dollar Managed Balanced Portfolio (collectively, the"U.S. Managed Funds"), 5-Year Protected BalancedIndex Fund, 5-Year Protected Canadian Bond Index Fund, 5-YearProtected Canadian Index Fund, 5-Year Protected InternationalIndex Fund, 5-Year Protected U.S. Index Fund (collectively,the "Protected Funds"), Renaissance CanadianSmall Cap Fund, Renaissance U.S. Fundamental Growth Fund, RenaissanceInternational RSP Index Fund, Renaissance U.S. RSP Index Fund,Renaissance Euro Fund, Renaissance Global Value Fund, RenaissanceInternational Growth Fund, Renaissance Developing Capital MarketsFund, Renaissance Canadian Money Market Fund, Renaissance CanadianBalanced Fund, Renaissance Canadian T-Bill Fund, RenaissanceCanadian High Yield Bond Fund, Renaissance Canadian Growth Fund,Renaissance U.S. Money Market Fund, Renaissance Canadian CoreValue Fund, Renaissance Canadian Bond Fund, Renaissance CanadianIncome Trust Fund, Renaissance Global Growth Fund, RenaissanceU.S. Basic Value Fund, Renaissance Canadian Balanced Value Fund,Renaissance Global Sectors Fund, Renaissance Global SectorsRSP Fund, Renaissance Global Value RSP Fund, Renaissance InternationalGrowth RSP Fund, Renaissance Global Technology Fund, RenaissanceGlobal Technology RSP Fund, Renaissance Tactical AllocationRSP Fund, Renaissance Global Growth RSP Fund, Renaissance TacticalAllocation Fund, Renaissance Canadian Dividend Income Fund,Renaissance Global Opportunities Fund, Renaissance Global OpportunitiesRSP Fund (collectively, the "Renaissance Mutual Funds"),Frontiers Canadian Fixed Income Pool, Frontiers Canadian ShortTerm Income Pool, Frontiers Canadian Equity Pool, FrontiersInternational Equity Pool, Frontiers Emerging Markets EquityPool, Frontiers Global Bond Pool, Frontiers International EquityRSP Pool, Frontiers U.S. Equity Pool, Frontiers U.S. EquityRSP Pool (collectively, the "Frontiers Pools"),Talvest Money Market Fund, Talvest Bond Fund, Talvest GlobalBond RSP Fund, Talvest Dividend Fund, Talvest European Fund,Talvest Income Fund, Talvest Value Line U.S. Equity Fund, TalvestGlobal RSP Fund, Talvest Cdn. Asset Allocation Fund, TalvestGlobal Asset Allocation RSP Fund, Talvest Asian Fund, TalvestCdn. Equity Growth Fund, Talvest Global Science & TechnologyFund, Talvest High Yield Bond Fund, Talvest Global Health CareFund, Talvest Small Cap Cdn. Equity Fund, Talvest Cdn. EquityLeaders Fund, Talvest Millennium High Income Fund, Talvest MillenniumNext Generation Fund, Talvest Global Small Cap Fund, TalvestChina Plus Fund, Talvest Global Equity Fund, Talvest FPX IncomeFund, Talvest FPX Growth Fund, Talvest Global Multi ManagementRSP Fund, Talvest FPX Balanced Fund, Talvest Global Multi ManagementFund, Talvest China Plus RSP Fund, Talvest Global Equity RSPFund, Talvest Global Small Cap RSP Fund, Talvest Global Science& Technology RSP Fund, Talvest Global Health Care RSP Fund,Talvest International Equity RSP Fund, Talvest Cdn. Multi ManagementFund, Talvest International Equity Fund, Talvest Asian RSP Fund,Talvest European RSP Fund, Talvest Value Line U.S. Equity RSPFund and Talvest Global Resources RSP Fund and Talvest GlobalResource Fund (collectively, the "Talvest Funds")(the CIBC Funds, the Managed Funds, the U.S. Managed Funds,the Protected Funds, the Renaissance Mutual Funds, the FrontiersPools and the Talvest Funds, collectively, the "Funds"and individually, a "Fund") for a decisionpursuant to the securities legislation of certain of the Jurisdictions(the "Legislation") for relief from the requirementto deliver an annual report, where applicable and comparativeannual financial statements of the Funds to certain securityholdersof the Funds unless they have requested to receive them;
AND WHEREAS pursuant to the Mutual RelianceReview System for Exemptive Relief Applications (the "System"),the Ontario Securities Commission is the principal regulatorfor this application;
AND WHEREAS, unless otherwise defined,the terms herein have the meaning set out in National Instrument14-101 Definitions or in Québec Commission Notice 14-101;
AND WHEREAS it has been represented bythe Managers to the Decision Makers that:
(a) The Funds are open-ended mutual fundtrusts established, or mutual fund corporations incorporated,under the laws of Ontario.
(b) CIBC is a Canadian chartered bank withits head office located in Toronto, Ontario and is the managerof each of the CIBC Funds, the Managed Funds and the U.S.Managed Funds. CIBC Securities Inc., a corporation establishedunder the laws of Canada and a wholly-owned subsidiary ofCIBC, is the manager of each of the Protected Funds. CAMI,a corporation established under the laws of Canada and awholly-owned subsidiary of CIBC, is the manager of eachof the Renaissance Mutual Funds and the Frontiers Pools.Talvest, a corporation established under the laws of Canada,and a wholly-owned subsidiary of CIBC, is the manager ofeach of the Talvest Funds.
(c) The Funds are reporting issuers in eachof the Jurisdictions and are not in default of any requirementsof the Legislation.
(d) Units of the Funds are currently offeredfor sale in each province and territory of Canada pursuantto a simplified prospectus, except for the Protected Funds,which are no longer for offered for sale. The current simplifiedprospectus is dated: (i) August 9, 2002 for units of theCIBC Funds; (ii) December 4, 2002 for units of the ManagedFunds; (iii) October 2, 2002 for units of the U.S. ManagedFunds; (iv) December 20, 2002 for units of the Talvest Funds;(v) November 8, 2002 for the Renaissance Mutual Funds; and(vi) November 26, 2002 for the Frontiers Pools.
(e) Each of the Funds is required to deliverannually, within 140 days of its financial year-end, toeach registered securityholder, an annual report, whereapplicable and comparative financial statements in the prescribedform pursuant to the Legislation.
(f) The Managers propose to send to securityholderswho hold securities registered in client name ("DirectSecurityholders"), either together with the relevantaccount statements or otherwise, a notice advising themthat they will not receive the annual report, where applicableand the annual financial statements of the relevant Fundsunless they complete and return a request for an annualreport which will contain the annual financial statements(the "Annual Report Request"). The AnnualReport Request will form part of the notice and may be returnedby pre-paid mail, facsimile or e-mail or to a branch. Theapplicable Direct Securityholders will also be advised thatannual reports for the Funds (containing the annual financialstatements) will be made available on-line or free of chargeby calling a toll-free number. The Managers would send suchfinancial statements or an annual report containing suchfinancial statements to any Direct Securityholder who requeststhem in response to such notice or otherwise.
(g) Securityholders who hold their securitiesin the Funds through a nominee will be dealt with pursuantto National Instrument 54-101.
(h) Securityholders will be able to accessthe annual report and annual financial statements of theFunds either on the SEDAR website or, for Funds other thanthe Frontiers Pools, on-line at the relevant Manager's website:www.cibc.com/mutualfunds (in the case of the CIBC Funds,the Managed Funds, the U.S. Managed Funds and the ProtectedFunds), www.renaissancefunds.ca (in the case of the RenaissanceFunds) and www.talvest.com (in the case of Talvest Funds).Where applicable, the top five or ten holdings, as the casemay be, will also be accessible via either a toll-free phoneline or the relevant Manager's website (which are updatedmonthly) or both.
(i) There would be substantial cost savingsif the Funds are not required to print and mail the annualreport, where applicable and annual financial statementsto those Direct Securityholders who do not want them.
(j) The Canadian Securities Administratorshave published for comment proposed National Instrument81-106 which, among other things, would permit mutual fundsnot to deliver annual financial statements to those of itssecurityholders who do not request them, if the Funds provideeach securityholder with a request form under which thesecurityholder may request, at no cost to the securityholder,to receive the mutual fund's annual financial statementsfor that financial year.
(k) Proposed National Instrument 81-106would also require a mutual fund to have a toll-free telephonenumber for, or accept collect calls from, persons or companiesthat want to receive a copy of, among other things, theannual financial statements of the mutual fund.
AND WHEREAS pursuant to the System thisMRRS Decision Document evidences the decision of each DecisionMaker (collectively, the "Decision");
AND WHEREAS each of the Decision Makersare satisfied that the test contained in the Legislation thatprovides the Decision Maker with the jurisdiction to make theDecision has been met;
THE DECISION of the Decision Makers pursuantto the Legislation is that:
(i) the Funds; and
(ii) mutual funds created subsequent tothe date hereof that are offered by way of simplified prospectusand managed by the Managers,
shall not be required to deliver their annualreport, where applicable and comparative annual financial statementsfor the year ending December 31, 2002 to their Direct Securityholdersother than those Direct Securityholders who have requested toreceive them provided that:
(a) the Managers shall file on SEDAR, underthe annual financial statements category, confirmation ofmailing of the request forms that have been sent to applicableDirect Securityholders as described in clause (f) of therepresentations within 90 days of mailing the request forms;
(b) the Managers shall file on SEDAR, underthe annual financial statements category, information regardingthe number and percentage of requests for the annual reportand annual financial statements made by the return of therequest forms, on a province-by-province basis within 30days after the end of each quarterly period beginning fromthe time of mailing the request forms and ending 12 monthsfrom the time of mailing;
(c) the Managers shall record the numberand a summary of complaints received from Direct Securityholdersabout not receiving the annual report and annual financialstatements and shall file on SEDAR, under the annual financialstatements category, this information within 30 days afterthe end of each quarterly period beginning from the timeof mailing the request forms and ending 12 months from thetime of mailing;
(d) the Managers shall, if possible, measurethe number of "hits" on the annual report andannual financial statements of the relevant Funds on eachof the www.cibc.com/mutualfunds, www.renaissancefunds.caand www.talvest.com websites and shall file on SEDAR,under the annual financial statements category, this informationwithin 30 days after the end of each quarterly period beginningfrom the time of mailing the request forms and ending 12months from the time of mailing; and
(e) the Managers shall file on SEDAR, underthe annual financial statements category, estimates of thecost savings resulting from the granting of this Decisionwithin 90 days of mailing the request forms.
January 27, 2003.
"Howard I. Wetston" "RobertL. Shirriff"