CI Mutual Funds Inc. - MRRS Decision

Headnote

Mutual Reliance Review System for Exemptive Relief Application -- Extension of mutual fund lapse date for some funds. Continued distribution beyond the lapse date of some funds.

IN THE MATTER OF

THE SECURITIES LEGISLATION OF

BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN,

MANITOBA, ONTARIO, QUEBEC, NEW BRUNSWICK,

NOVA SCOTIA, PRINCE EDWARD ISLAND,

NEWFOUNDLAND AND LABRADOR,

YUKON, AND NUNAVUT

AND

IN THE MATTER OF

THE MUTUAL RELIANCE REVIEW SYSTEM

FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

CI CANADIAN EQUITY FUND

CI TACTONICS FUND

CI TACTONICS RSP FUND

LANDMARK GLOBAL SECTOR FUND

LANDMARK GLOBAL RSP FUND

LANDMARK CANADIAN FUND

(collectively, the "CI Funds")

SYNERGY GLOBAL MOMENTUM CLASS

SYNERGY GLOBAL VALUE CLASS

SYNERGY GLOBAL VALUE RSP FUND

SYNERGY AMERICAN GROWTH CLASS

SYNERGY AMERICAN GROWTH RSP FUND

SYNERGY GLOBAL GROWTH CLASS

SYNERGY GLOBAL GROWTH RSP FUND

SYNERGY EUROPEAN MOMENTUM CLASS

SYNERGY EUROPEAN MOMENTUM RSP FUND

SYNERGY GLOBAL SHORT-TERM INCOME CLASS

SYNERGY GLOBAL STYLE MANAGEMENT CLASS

(collectively, the "Synergy Funds")

MRRS DECISION DOCUMENT

WHEREAS the Canadian securities regulatory authority or regulator (the "Decision Maker") in each of the provinces and territories of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Yukon Territory and Nunavut (the "Jurisdictions") has received an application (the "Application") from CI Mutual Funds Inc. ("CI"), the manager of the CI Funds and the Synergy Funds (collectively, the "Funds"), for a decision pursuant to securities legislation of the Jurisdictions (the "Legislation") that the time limits pertaining to the distribution of securities under the simplified prospectus and annual information form dated July 15, 2003 of the CI Funds, as amended from time to time, (collectively, the "CI Prospectus"), and the simplified prospectus and annual information form dated August 25, 2003 of the Synergy Funds, as amended from time to time, (collectively, the "Synergy Prospectus") be extended to permit the continued distribution of securities of the Funds until September 3, 2004;

AND WHEREAS under the Mutual Reliance Review System for Exemptive Relief Applications (the "System") the Ontario Securities Commission is the principal regulator for the Application;

AND WHEREAS the Funds have represented to the Decision Makers that:

1. On or about September 3, 2004, CI intends to merge 15 Funds into other mutual funds managed by CI in order to rationalize the line-up of funds managed by CI and thereby eliminate duplicative funds and reduce carrying costs. On that same day, CI intends to convert 2 additional Funds into newly created classes of shares of CI Sector Fund Limited in order to provide investors with a broader choice of mutual funds into which they may switch their assets on a tax-deferred basis. Such mergers and conversions are hereinafter referred to collectively as the "Mergers".

2. Each Fund is a reporting issuer as defined in the Legislation and is not in default of any of the requirements of such Legislation.

3. Each CI Fund currently distributes its securities in each of the Jurisdictions pursuant to the CI Prospectus. The earliest lapse date of the CI Prospectus under the Legislation is July 15, 2004.

4. Each Synergy Fund currently distributes its securities in each of the Jurisdictions pursuant to the Synergy Prospectus. The earliest lapse date of the Synergy Prospectus under the Legislation is August 25, 2004.

5. There have been no material changes in the affairs of any CI Fund since the filing of the CI Prospectus other than those for which amendments have been filed. Accordingly, the CI Prospectus represents current information regarding each CI Fund. The requested extension will not affect the accuracy of information in the CI Prospectus and therefore will not be prejudicial to the public interest.

6. There have been no material changes in the affairs of any Synergy Fund since the filing of the Synergy Prospectus other than those for which amendments have been filed. Accordingly, the Synergy Prospectus represents current information regarding each Synergy Fund. The requested extension will not affect the accuracy of information in the Synergy Prospectus and therefore will not be prejudicial to the public interest.

7. The Mergers will be effected in accordance with the requirements of National Instrument 81-102 including, without limitation, obtaining the approval of securityholders of the Funds and the approval of the Canadian securities administrators to the extent not already provided by section 5.6(1) of such National Instrument.

8. A pro forma renewal simplified prospectus and annual information form (the "Renewal Prospectus") for a large number of mutual funds managed by CI (including the Funds) was previously filed. The pro forma Renewal Prospectus currently includes the Funds because CI had not yet made the decision to proceed with the Mergers at the time the pro forma Renewal Prospectus was filed. In order to reduce expenses of the Funds for the benefit of their securityholders, it is CI's intention to remove the Funds from the final version of the Renewal Prospectus and request a refund from the Canadian securities administrators of the fees that were submitted with the pro forma Renewal Prospectus in respect of the Funds.

9. In order to achieve the cost savings described above, the Funds will be removed from the final version of the Renewal Prospectus with the result that the securities of the CI Funds will cease to be qualified for distribution after July 15, 2004 and the securities of the Synergy Funds will cease to be qualified for distribution after August 25, 2004.

10. If the lapse date extension requested herein to September 3, 2004 is not granted, the Funds will be required to remain in the final version of the Renewal Prospectus (which currently is expected to be filed on SEDAR on or about July 23, 2004) and forego any refunds of filing fees, notwithstanding that the Funds will be terminated on or about September 3, 2004. Retaining the Funds within the Renewal Prospectus also may cause confusion among investors who may assume that the Funds continue to be available for purchase after September 3, 2004.

AND WHEREAS under the System, this MRRS Decision Document evidences the decision of each Decision Makers (collectively, the "Decision");

AND WHEREAS each Decision Maker is satisfied that the test contained in the Legislation that provides the 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 time periods provided in the Legislation as they apply to a distribution of securities under the CI Prospectus and Synergy Prospectus are hereby extended to permit the continued distribution of securities of the Funds pursuant to the CI Prospectus and Synergy Prospectus until September 3, 2004, given that prospectus amendments have been filed to disclose the pending Mergers.

July 28, 2004.