Securities Law & Instruments

Headnote

Exemption from the requirement to deliver comparativeannual financial statements for the year ending December 31,2002 to registered securityholders of certain mutual funds.

Statutes Cited

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,MANITOBA, QUÉBEC,

SASKATCHEWAN, ONTARIO, NOVASCOTIA, AND

NEWFOUNDLAND AND LABRADOR

AND

IN THE MATTER OF

THE MUTUAL RELIANCE REVIEWSYSTEM

FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

INVESTORS INCOME PORTFOLIO,INVESTORS GROWTH PORTFOLIO, INVESTORS INCOME PLUS PORTFOLIO,INVESTORS GROWTH PLUS PORTFOLIO, INVESTORS RETIREMENT GROWTHPORTFOLIO, INVESTORS RETIREMENT HIGH GROWTH PORTFOLIO, INVESTORSRETIREMENT PLUS PORTFOLIO, INVESTORS WORLD GROWTH PORTFOLIO,INVESTORS CANADIAN MONEY MARKET FUND, INVESTORS U.S. MONEY MARKETFUND, INVESTORS MORTGAGE FUND, INVESTORS GOVERNMENT BOND FUND,INVESTORS CORPORATE BOND FUND, INVESTORS CANADIAN HIGH YIELDINCOME FUND, INVESTORS GLOBAL BOND FUND, INVESTORS DIVIDENDFUND, INVESTORS MUTUAL OF CANADA, INVESTORS CANADIAN BALANCEDFUND, INVESTORS ASSET ALLOCATION FUND, INVESTORS CANADIAN LARGECAP VALUE FUND, INVESTORS CANADIAN EQUITY FUND, INVESTORS CANADIANENTERPRISE FUND, INVESTORS QUEBEC ENTERPRISE FUND, INVESTORSSUMMA FUND, INVESTORS CANADIAN SMALL CAP FUND, INVESTORS CANADIANSMALL CAP GROWTH FUND, INVESTORS CANADIAN NATURAL RESOURCE FUND,INVESTORS U.S. LARGE CAP GROWTH FUND, INVESTORS NORTH AMERICANGROWTH FUND, INVESTORS U.S. LARGE CAP VALUE FUND, INVESTORSU.S. OPPORTUNITIES FUND, INVESTORS GLOBAL SCIENCE & TECHNOLOGYFUND, INVESTORS GLOBAL E.COMMERCE FUND, INVESTORS GLOBAL FUND,INVESTORS EUROPEAN GROWTH FUND, INVESTORS EUROPEAN MID-CAP GROWTHFUND, INVESTORS JAPANESE GROWTH FUND, INVESTORS PACIFIC INTERNATIONALFUND, INVESTORS LATIN AMERICAN GROWTH FUND, IG AGF CANADIANGROWTH FUND, IG AGF U.S. GROWTH FUND, IG AGF ASIAN GROWTH FUND,IG AGF CANADIAN DIVERSIFIED GROWTH FUND, IG AGF CANADIAN BALANCEDFUND, IG AGF CANADIAN GROWTH FUND II, IG AGF U.S. GROWTH FUNDII, IG AGF INTERNATIONAL BOND FUND, IG AGF INTERNATIONAL EQUITYFUND, IG BEUTEL GOODMAN CANADIAN BALANCED FUND, IG BEUTEL GOODMANCANADIAN EQUITY FUND, IG BEUTEL GOODMAN CANADIAN SMALL CAP FUND,IG FI CANADIAN ALLOCATION FUND, IG FI CANADIAN EQUITY FUND,IG FI U.S. EQUITY FUND, IG FI GLOBAL EQUITY FUND, IG MACKENZIEMAXXUM DIVIDEND FUND, IG MACKENZIE INCOME FUND, IG SCEPTRE CANADIANBALANCED FUND, IG SCEPTRE CANADIAN EQUITY FUND, IG SCEPTRE CANADIANBOND FUND, IG GOLDMAN SACHS U.S. EQUITY FUND, IG MACKENZIE UNIVERSALEMERGING MARKETS FUND, IG MACKENZIE SELECT MANAGERS CANADA FUND,IG MACKENZIE IVY EUROPEAN FUND, IG TEMPLETON WORLD BOND FUND,IG TEMPLETON INTERNATIONAL EQUITY FUND, IG TEMPLETON WORLD ALLOCATIONFUND, JANUS AMERICAN EQUITY FUND: IG CLASS UNITS, JANUS GLOBALEQUITY FUND: IG CLASS UNITS, INVESTORS MERGERS & ACQUISITIONSFUND 1WORLD CONSERVATIVE PORTFOLIO, 1WORLD MODERATE CONSERVATIVEPORTFOLIO, 1WORLD MODERATE PORTFOLIO, 1WORLD MODERATE AGGRESSIVEPORTFOLIO, 1WORLD MODERATE AGGRESSIVE REGISTERED PORTFOLIO,1WORLD AGGRESSIVE PORTFOLIO, 1WORLD AGGRESSIVE REGISTERED PORTFOLIO,INVESTORS CANADIAN HIGH YIELD MONEY MARKET FUND, INVESTORS GLOBALFINANCIAL SERVICES FUND AND INVESTORS PAN ASIAN GROWTH FUND.(the "Investors Masterseries and partner Funds")

AND

INVESTORS U.S. LARGE CAP VALUERSP FUND, INVESTORS GLOBAL RSP FUND, INVESTORS EUROPEAN GROWTHRSP FUND, INVESTORS JAPANESE GROWTH RSP FUND, INVESTORS GLOBALSCIENCE & TECHNOLOGY RSP FUND AND IG AGF U.S. GROWTH RSPFUND (the "Investors Global RSP Funds")

AND

iPROFILE CANADIAN EQUITYPOOL, iPROFILE U.S. EQUITY POOL, iPROFILE INTERNATIONALEQUITY POOL, iPROFILE EMERGING MARKETS POOL, iPROFILEFIXED INCOME POOL, iPROFILE GLOBAL EQUITY RSP POOL, ANDiPROFILE MONEY MARKET POOL, (the "iProfilePools")

AND

INVESTORS REAL PROPERTY FUND

 

MRRS DECISION DOCUMENT

WHEREAS the local securities regulatoryauthority or regulator (the "Decision Maker") in eachof British Columbia, Alberta, Saskatchewan, Manitoba, Québec,Ontario, Nova Scotia, and Newfoundland and Labrador (the "Jurisdictions")has received an application (the "Application") fromInvestors Group Trust Co. Ltd. (the "Trustee"), astrustee of the Investors Masterseries and partner Funds, InvestorsGlobal RSP Funds, iProfile Pools and Investors Real PropertyFund (collectively, the "Funds") for a decision underthe securities legislation of the Jurisdictions (the "Legislation")for relief from the requirement to deliver an annual report,where applicable, and comparative annual financial statementsof the Funds to certain securityholders of the Funds unlessthey have requested to receive them:

AND WHEREAS under the Mutual RelianceReview System for Exemptive Relief Applications (the "System"),The Manitoba 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 the Trustee has representedto the Decision Makers that:

(a) The Funds are open-ended mutual fundsestablished under the laws of Manitoba or Ontario.

(b) The Trustee is a corporation incorporatedunder the laws of Manitoba. The Trustee is the trustee ofthe Funds. The Trustee has entered into arrangements withother service providers to provide investment management,administrative, distribution and other services for theFunds, but remains responsible for the overall business,operation and affairs of the Funds.

(c) The Funds are distributed primarilyin Québec by Les Services Investors Limitée,and primarily by Investors Group Financial Services Inc.in all the other Jurisdictions (the "Principal Distributors").The Principal Distributors are registered, respectively,in Quebec and in the other Jurisdictions, as Mutual FundDealers or the equivalent registration. The Trustee andPrincipal Distributors are related entities, each beingwholly owned directly or indirectly by Investors Group Inc.

(d) The Funds are reporting issuers in eachof the Jurisdictions and are not in default of any requirementsof the Legislation.

(e) Units of the Funds are presently offeredfor sale on a continuous basis in each province and territoryof Canada under a simplified prospectus dated October 15,2002 as amended, except in the case of the iProfilePools (Simplified Prospectus dated January 14, 2002) andInvestors Real Property Fund (Prospectus dated September13, 2002).

(f) Each of the Funds is required to deliverannually, within 140 days of its financial year-end, toeach holder of its securities ("Securityholders"),an annual report, where applicable and comparative financialstatements in the prescribed form under the Legislation.The financial year-end of the Funds is December 31. Underthe Legislation the financial statements of the InvestorsGlobal Series RSP Funds and the iProfile Global EquityRSP Pool (the "Top Funds") are to include financialstatements of the mutual funds into which they invest (the"Underlying Funds"). The Top Funds satisfy thisrequirement by the sending of the financial statements ofthe Underlying Funds with the financial statements of theTop Funds.

(g) The Trustee, or Principal Distributors,propose to send Securityholders who hold securities of theFunds in client name where the Principal Distributors arethe dealers (the "Direct Securityholders"), togetherwith their year end account statement, a notice advisingthem that they will not receive the annual report and annualfinancial statements of the Funds for the year then endedunless they request same, and providing them with a requestform to send back, by fax or prepaid mail, if they wishto receive the annual report and annual financial statements.The notice will advise the Direct Securityholders that theannual report and annual financial statements of the Fundsmay be found on the websites referred to in clause (i) anddownloaded. The Trustee or Principal Distributors wouldsend such annual report and financial statements to anyDirect Securityholder who requests them in response to suchnotice or who subsequently requests them by request on atoll-free number or at a branch of the Principal Distributors.

(h) Securityholders who hold their securitiesin the Funds through a nominee will be dealt with underNational Instrument 54-101. Securityholders who hold theirsecurities in the Funds in client name where one of thePrincipal Distributors is not the dealer will be sent theannual report and annual financial statements of the Fundsin accordance with the Legislation.

(i) Securityholders will be able to accessthe annual report and annual financial statements of theFunds either on the SEDAR website or on the Investors GroupInc. website: www.investorsgroup.com . As disclosed in thesimplified prospectuses of the Funds, the top ten holdingswill also be accessible upon request.

(j) There would be substantial cost savingsif the Funds are not required to print and mail the annualreport and annual financial statements to those Direct Securityholderswho do not want them.

(k) The Canadian Securities Administratorshave published for comment proposed National Instrument81-106 which, among other things, would permit mutual fundsnot to deliver the annual report and annual financial statementsto those of its securityholders who do not request them,if the Funds provide each securityholder with a requestform under which the securityholder may request, at no costto the securityholder, to receive the mutual fund's annualreport and annual financial statements for that financialyear.

(l) 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 under the System this MRRSDecision Document evidences the decision of each Decision Makers(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;

AND WHEREAS the Decision Makers are satisfiedthat making the Decision will not adversely affect the rule-makingprocess with respect to proposed National Instrument 81-106and is consistent with National Instrument 54-101;

THE DECISION of the Decision Makers underthe Legislation is that:

1. the Funds shall not be required to delivertheir annual report and comparative annual financial statementsfor the year ending December 31, 2002 to their Direct Securityholdersother than those Direct Securityholders who have requestedto receive them provided that:

(a) the Trustee or Principal Distributorsshall file on SEDAR, under the annual financial statementscategory, confirmation of mailing of the request forms thathave been sent to the Direct Securityholders as describedin clause (g) of the representations within 90 days of mailingthe request forms;

(b) the Trustee or Principal Distributorsshall file on SEDAR, under the annual financial statementscategory, information regarding the number and percentageof requests for annual reports and annual financial statementsmade by the return of the request forms, on a province-by-provincebasis within 30 days after the end of each quarterly periodbeginning from the time of mailing the request forms andending 12 months from the time of mailing;

(c) the Trustee or Principal Distributorsshall maintain a record of the number and a summary of complaintsreceived from Direct Securityholders about not receivingthe annual report and annual financial statements and shallfile on SEDAR, under the annual financial statements category,this information within 30 days after the end of each quarterlyperiod beginning from the time of mailing the request formsand ending 12 months from the time of mailing;

(d) the Trustee or Principal Distributorsshall, if possible, maintain a record of the number of "hits"on the annual report and annual financial statements ofthe Funds on the www.investorsgroup.com website and shallfile on SEDAR, under the annual financial statements category,this information within 30 days after the end of each quarterlyperiod beginning from the time of mailing the request formsand ending 12 months from the time of mailing; and

(e) the Trustee or the Principal Distributorsshall file on SEDAR, under the annual financial statementscategory, estimates of the cost savings resulting from thegranting of this Decision within 90 days of mailing therequest forms.

January 15, 2003.

"Chris Besko"