Unofficial consolidation for financial years beginning before January 1, 2014
This is an unofficial consolidation of Form 81-106F1 Contents of Annual and Interim
Management Report of Fund Performance that does not reflect amendments made
effective January 1, 2014 in connection with Canada’s changeover to IFRS. This
consolidation generally applies to financial periods relating to financial years beginning
before January 1, 2014. This document is for reference purposes only and is not an
official statement of the law.
National Instrument 81-106 Investment Fund Continuous Disclosure
Form 81-106F1
Contents of Annual and Interim
Management Report of Fund Performance
PART A – INSTRUCTIONS AND INTERPRETATION
Item 1 General
Item 2 Management Discussion of Fund Performance
PART B – CONTENT REQUIREMENTS FOR ANNUAL MANAGEMENT
REPORT OF FUND PERFORMANCE
Item 1 First Page Disclosure
Item 2 Management Discussion of Fund Performance
Item 3 Financial Highlights
Item 4 Past Performance
Item 5 Summary of Investment Portfolio
Item 6 Other Material Information
PART C – CONTENT REQUIREMENTS FOR INTERIM MANAGEMENT
REPORT OF FUND PERFORMANCE
Item 1 First Page Disclosure
Item 2 Management Discussion of Fund Performance
Item 3 Financial Highlights
Item 4 Past Performance
Item 5 Summary of Investment Portfolio
Item 6 Other Material Information
Unofficial consolidation for financial years beginning before January 1, 2014
National Instrument 81-106 Investment Fund Continuous Disclosure
Form 81-106F1
Contents of Annual and Interim
Management Report of Fund Performance
PART A – INSTRUCTIONS AND INTERPRETATION
Item 1 – General
(a)
The Form
The Form describes the disclosure required in an annual or interim management
report of fund performance (MRFP) of an investment fund. Each item of the Form
outlines disclosure or format requirements. Instructions to help you comply with
these requirements are printed in italic type.
(b)
Plain Language
An MRFP must state the required information concisely and in plain language (as
defined in National Instrument 81-101 Mutual Fund Prospectus Disclosure).
Refer to Part 1 of Companion Policy 81-106CP for a discussion concerning plain
language and presentation.
When preparing an MRFP, respond as simply and directly as is reasonably
possible and include only as much information as is necessary for readers to
understand the matters for which you are providing disclosure.
(c)
Format
Present the MRFP in a format that assists readability and comprehension. The
Form generally does not mandate the use of a specific format to achieve these
goals, except in the case of disclosure of financial highlights and past
performance as required by Items 3 and 4 of each of Parts B and C of the Form;
that disclosure must be presented in the format specified in the Form.
An MRFP must use the headings and sub-headings shown in the Form. Within
this framework, investment funds are encouraged to use, as appropriate, tables,
captions, bullet points or other organizational techniques that assist in presenting
the required disclosure clearly and concisely. Disclosure provided in response to
any item does not need to be repeated elsewhere. The interim MRFP must use the
same headings as used in the annual MRFP.
The Form does not prohibit including information beyond what the Form requires.
An investment fund may include artwork and educational material (as defined in
National Instrument 81-101 Mutual Fund Prospectus Disclosure) in its annual
and interim MRFP. However, an investment fund must take reasonable care to
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ensure that including such material does not obscure the required information and
does not lengthen the MRFP excessively.
(d)
Focus on Material Information
You do not need to disclose information that is not material. You do not need to
respond to any item in this Form that is inapplicable and you may omit negative
answers.
(e)
What is Material?
Would a reasonable investor’s decision to buy, sell or hold securities of an
investment fund likely be influenced or changed if the information in question
was omitted or misstated? If so, the information is material. This concept of
materiality is consistent with the financial reporting notion of materiality
contained in the Handbook. In determining whether information is material, take
into account both quantitative and qualitative factors.
(f)
Terminology
All references to “net assets” or “net assets per security” in this Form are
references to net assets determined in accordance with Canadian GAAP as
presented in the financial statements of the investment fund. All references to “net
asset value” or “net asset value per security” in this Form are references to net
asset value determined in accordance with Part 14 of the Instrument.
Investment funds must use net assets as shown on the financial statements in the
‘‘The Fund’s Net Assets per [Unit/Share]” table. All other calculations for the
purposes of the MRFP must be made using net asset value.
Item 2 – Management Discussion of Fund Performance
The management discussion of fund performance is an analysis and explanation
that is designed to complement and supplement an investment fund’s financial
statements. The discussion is the equivalent to the corporate management
discussion and analysis (MD&A) with specific modifications for investment
funds. It provides the manager of an investment fund with the opportunity to
discuss the investment fund’s position and financial results for the relevant period.
The discussion is intended to give a reader the ability to look at the investment
fund through the eyes of management by providing both a historical and
prospective analysis of the investment activities and operations of the investment
fund. Coupled with the financial highlights, this information should enable
readers to better assess the investment fund’s performance and future prospects.
Focus the management discussion on material information about the performance
of the investment fund, with particular emphasis on known material trends,
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commitments, events, risks or uncertainties that the manager reasonably expects
to have a material effect on the investment fund’s future performance or
investment activities.
The description of the disclosure requirements is intentionally general. This Form
contains a minimum number of specific instructions in order to allow, as well as
encourage, investment funds to discuss their activities in the most appropriate
manner and to tailor their comments to their individual circumstances.
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PART B – CONTENT REQUIREMENTS FOR ANNUAL MANAGEMENT
REPORT OF FUND PERFORMANCE
Item 1 – First Page Disclosure
The first page of an annual MRFP must contain disclosure in substantially the
following words:
“This annual management report of fund performance contains financial
highlights but does not contain the complete annual financial statements of the
investment fund. You can get a copy of the annual financial statements at your
request, and at no cost, by calling [toll-free/collect call telephone number], by
writing to us at [insert address] or by visiting our website at [insert address] or
SEDAR at www.sedar.com.
Securityholders may also contact us using one of these methods to request a copy
of the investment fund’s proxy voting policies and procedures, proxy voting
disclosure record, or quarterly portfolio disclosure.”
INSTRUCTION:
If the MRFP is bound with the financial statements of the investment fund, modify the first
page wording appropriately.
Item 2 – Management Discussion of Fund Performance
2.1
Investment Objective and Strategies
Disclose under the heading “Investment Objective and Strategies” a brief
summary of the fundamental investment objective and strategies of the
investment fund.
INSTRUCTION:
Disclosing the fundamental investment objective provides investors with a reference point
for assessing the information contained in the MRFP. It must be a concise summary of
the fundamental investment objective and strategies of the investment fund, and not
merely copied from the prospectus.
2.2
Risk
Disclose under the heading “Risk” a discussion of how changes to the
investment fund over the financial year affected the overall level of risk
associated with an investment in the investment fund.
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INSTRUCTIONS:
Ensure that the discussion is not merely a repeat of information contained in the
prospectus of the investment fund, but rather a discussion that reflects any changes in
risk level of the investment fund over the financial year.
Consider how the changes in the risks associated with an investment in the investment
fund affect the suitability or investor risk tolerance stated in the prospectus or offering
document. All investment funds should refer to Items 9 and 10 of Part B of Form 81-
101F1 as if those sections applied to them.
2.3
Results of Operations
(1)
Under the heading “Results of Operations” provide a summary of
the results of operations of the investment fund for the financial
year to which the MDFP pertains, including a discussion of
(a)
any material changes in investments in specific portfolio
assets and overall asset mix from the previous period;
(b)
how the composition and changes to the composition of the
investment portfolio relate to the investment fund’s
fundamental investment objective and strategies or to
changes in the economy, markets or unusual events;
(c)
unusual trends in redemptions or sales and the effect of
these on the investment fund;
(d)
significant components and changes to the components of
revenue and expenses;
(e)
risks, events, trends and commitments that had a material
effect on past performance; and
(f)
unusual or infrequent events or transactions, economic
changes and market conditions that affected performance.
(2)
An investment fund that borrows money, other than immaterial
operating overdrafts, must disclose,
(a)
the minimum and maximum amount borrowed during the
period;
(b)
the percentage of net assets of the investment fund that the
borrowing represented as of the end of the period;
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(c)
how the borrowed money was used; and
(d)
the terms of the borrowing arrangements.
INSTRUCTION:
Explain the nature of and reasons for changes in your investment fund’s performance.
Do not simply disclose the amount of change in a financial statement item from period to
period. Avoid the use of boilerplate language. Your discussion should assist the reader
to understand the significant factors that have affected the performance of the investment
fund.
2.4
Recent Developments
Under the heading “Recent Developments” discuss the developments
affecting the investment fund, including
(a)
known changes to the strategic position of the investment fund;
(b)
known material trends, commitments, events or uncertainties that
might reasonably be expected to affect the investment fund;
(c)
changes to the manager or portfolio adviser, or change of control
of the manager, of the investment fund;
(d)
the effects of any actual or planned reorganizations, mergers or
similar transactions;
(e)
the estimated effects of changes in accounting policies adopted
subsequent to year end; and
(f)
changes to the composition or members of the independent review
committee of the investment fund.
INSTRUCTIONS:
(1)
Preparing the management discussion necessarily involves some degree of
prediction or projection. The discussion must describe anticipated events,
decisions, circumstances, opportunities and risks that management
considers reasonably likely to materially impact performance. It must also
describe management’s vision, strategy and targets.
(2)
There is no requirement to provide forward-looking information. If any
forward-looking information is provided, it must contain a statement that
the information is forward-looking, a description of the factors that may
cause actual results to differ materially from the forward-looking
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information, your material assumptions and appropriate risk disclosure
and cautionary language. You must also discuss any forward-looking
information disclosed for a prior period which, in light of intervening
events and absent further explanations, may be misleading.
2.5
Related Party Transactions
Under the heading “Related Party Transactions” discuss any transactions
involving related parties to the investment fund.
INSTRUCTIONS:
(1)
In determining who is a related party, investment funds should look to the
Handbook. In addition, related parties include the manager and portfolio
adviser (or their affiliates) and a broker or dealer related to any of the
investment fund, its manager or portfolio adviser.
(2)
When discussing related party transactions, include the identity of the
related party, the relationship to the investment fund, the purpose of the
transaction, the measurement basis used to determine the recorded
amount and any ongoing commitments to the related party.
(3)
Related party transactions include portfolio transactions with related
parties of the investment fund. When discussing these transactions, include
the dollar amount of commission, spread or any other fee that the
investment fund paid to any related party in connection with a portfolio
transaction.
(4)
If the investment fund has an independent review committee, state whether
the investment fund has relied on the positive recommendation or
approval of the independent review committee to proceed with the
transaction, and provide details of any conditions or parameters
surrounding the transaction imposed by the independent review committee
in its positive recommendation or approval.
Item 3 – Financial Highlights
3.1
Financial Highlights
(1)
Provide selected financial highlights for the investment fund under
the heading “Financial Highlights” in the form of the following
tables, appropriately completed, and introduced using the
following words:
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“The following tables show selected key financial information
about the Fund and are intended to help you understand the Fund’s
financial performance for the past [insert number] years.
The Fund’s Net Assets per [Unit/Share]
(1)
[insert year]
Net Assets, beginning of year
$
Increase (decrease) from operations:
total revenue
$
total expenses
$
realized gains (losses) for the period
$
unrealized gains (losses) for the period
$
Total increase (decrease) from
$
operations
(2)
Distributions:
From income (excluding dividends)
$
From dividends
$
From capital gains
$
Return of capital
$
Total Annual Distributions
(3)
$
Net assets at [insert last day of
$
financial year] of year shown
(1)
This information is derived from the Fund’s audited annual financial statements. The net assets per security
presented in the financial statements differs from the net asset value calculated for fund pricing purposes. [An
explanation of these differences can be found in the notes to the financial statements. This difference is due to
[explain].]
(2)
Net assets and distributions are based on the actual number of [units/shares] outstanding at the relevant
time. The increase/decrease from operations is based on the weighted average number of [units/shares]
outstanding over the financial period.
(3)
Distributions were [paid in cash/reinvested in additional [units/shares] of the Fund, or both]
[insert year]
[insert year]
[insert year]
[insert year]
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
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Ratios and Supplemental Data
[insert year]
Total net asset value (000’s)
(1)
$
Number of [units/shares] outstanding
(1)
Management expense ratio
(2)
%
Management expense ratio before
%
waivers or absorptions
Trading expense ratio
(3)
%
Portfolio turnover rate
(4)
%
Net asset value per [unit/share]
$
Closing market price [if applicable]
$
(1)
This information is provided as at [insert date of end of financial year] of the year shown.
(2)
Management expense ratio is based on total expenses (excluding commissions and other portfolio
transaction costs) for the stated period and is expressed as an annualized percentage of daily average net
asset value during the period.
(3)
The trading expense ratio represents total commissions and other portfolio transaction costs expressed as
an annualized percentage of daily average net asset value during the period.
(4)
The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio adviser manages its portfolio
investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the
securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a
year, the greater the trading costs payable by the fund in the year, and the greater the chance of an investor
receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover
rate and the performance of a fund.
(2)
[Repealed]
(3)
Modify the table appropriately for corporate investment funds.
(4)
Show the financial highlights individually for each class or series,
if a multi-class fund.
(5)
Provide per unit or per share amounts to the nearest cent, and
provide percentage amounts to two decimal places.
(6)
Except for net assets, net asset value and distributions, calculate
per unit/share values on the basis of the weighted average number
of unit/shares outstanding over the financial period.
(7)
Provide the selected financial information required by this Item in
chronological order for each of the five most recently completed
financial years of the investment fund for which audited financial
[insert year]
[insert year]
[insert year]
[insert year]
$
$
$
$
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
$
$
$
$
$
$
$
$
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statements have been filed, with the information for the most
recent financial year in the first column on the left of the table.
(8)
If the investment fund has merged with another investment fund,
include in the table only the financial information of the continuing
investment fund.
(9)
Calculate the management expense ratio of the investment fund as
required by Part 15 of the Instrument. Include a brief description of
the method of calculating the management expense ratio in a note
to the table.
(10)
If the investment fund,
(a)
changed, or proposes to change, the basis of the calculation
of the management fees or of the other fees, charges or
expenses that are charged to the investment fund; or
(b)
introduces or proposes to introduce a new fee,
and if the change would have had an effect on the management
expense ratio for the last completed financial year of the
investment fund if the change had been in effect throughout that
financial year, disclose the effect of the change on the management
expense ratio in a note to the “Ratios and Supplemental Data”
table.
(11)
Do not include disclosure concerning portfolio turnover rate for a
money market fund.
(12)
(a)
Calculate the trading expense ratio by dividing
(i)
the total commissions and other portfolio
transaction costs disclosed in the statement of
operations, by
(ii)
the same denominator used to calculate the
management expense ratio.
(b)
If an investment fund invests in securities of other
investment funds, calculate the trading expense ratio using
the methodology required for the calculation of the
management expense ratio in section 15.2 of the
Instrument, making reasonable assumptions or estimates
when necessary.
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(13)
Provide the closing market price only if the investment fund is
traded on an exchange.
INSTRUCTIONS:
(1)
Calculate the investment fund’s portfolio turnover rate by dividing the
lesser of the amounts of the cost of purchases and proceeds of sales of
portfolio securities for the financial year by the average of the value of the
portfolio securities owned by the investment fund in the financial year.
Calculate the monthly average by totalling the values of portfolio
securities as at the beginning and end of the first month of the financial
year and as at the end of each of the succeeding 11 months and dividing
the sum by 13. Exclude from both numerator and denominator amounts
relating to all portfolio securities having a remaining term to maturity on
the date of acquisition by the investment fund of one year or less.
(2)
Further to instruction (1), include:
(a)
proceeds from a short sale in the value of the portfolio securities
sold during the period;
(b)
the cost of covering a short sale in the value of portfolio securities
purchased during the period;
(c)
premiums paid to purchase options in the value of portfolio
securities purchased during the period; and
(d)
premiums received from the sale of options in the value of the
portfolio securities sold during the period.
(3)
If the investment fund acquired the assets of another investment fund in
exchange for its own shares during the financial year in a purchase-of-
assets transaction, exclude from the calculation of portfolio turnover rate
the value of securities acquired and sold to realign the fund’s portfolio.
Adjust the denominator of the portfolio turnover computation to reflect
these excluded purchases and sales and disclose them in a footnote.
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3.2
Scholarship Plans
An investment fund that is a scholarship plan must comply with Item 3.1,
except that the following table must replace “The Fund’s Net Assets per
[Unit/Share]” table and the “Ratios and Supplemental Data” table.
Financial & Operating Highlights (with comparative figures)
[insert
[insert
[insert
[insert
[insert
year]
year]
year]
year]
year]
Balance Sheet
Total Assets
$
$
$
$
$
Net Assets
$
$
$
$
$
% change of Net Assets
%
%
%
%
%
Statement of Operations
Scholarship Awards
$
$
$
$
$
Canadian Education
$
$
$
$
$
Savings Grant
Net investment income
$
$
$
$
$
Other
Total number of
[agreements/units] in plans
% change in the total
%
%
%
%
%
number of agreements
3.3
Management Fees
Disclose the basis for calculating the management fees paid by the
investment fund and a breakdown of the services received in consideration
of the management fees, as a percentage of management fees.
INSTRUCTION:
.
The disclosure must list the major services paid for out of the management fees, including
portfolio adviser compensation, waived or absorbed expenses, trailing commissions and
sales commissions, if applicable. Services may be grouped together so that commercially
sensitive information, such as the specific compensation paid to a portfolio adviser or the
manager’s profit, is not determinable.
Item 4 – Past Performance
4.1
General
(1)
In responding to the requirements of this Item, an investment fund
must comply with sections 15.2, 15.3, 15.9, 15.10, 15.11 and 15.14
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of National Instrument 81-102 Mutual Funds as if those sections
applied to the annual MRFP.
(2)
Despite the specific requirements of this Item, do not provide
performance data for any period if the investment fund was not a
reporting issuer at all times during the period.
(3)
Set out in the footnotes to the chart or table required by this Item
the assumptions relevant to the calculation of the performance
information, including any assumptions or estimates made in order
to calculate the return on the short portfolio, if applicable. Include
a statement of the significance of the assumption that distributions
are reinvested for taxable investments.
(4)
In a general introduction to the “Past Performance” section,
indicate, as applicable, that
(a)
the performance information shown assumes that all
distributions made by the investment fund in the periods
shown were reinvested in additional securities of the
investment fund;
(b)
the performance information does not take into account
sales, redemption, distribution or other optional charges
that would have reduced returns or performance; and
(c)
how the investment fund has performed in the past does not
necessarily indicate how it will perform in the future.
(5)
Use a linear scale for each axis of the bar chart required by this
Item.
(6)
The x-axis must intersect the y-axis at 0 for the “Year-by-Year
Returns” bar chart.
4.2
Year-by-Year Returns
(1)
Provide a bar chart, under the heading “Past Performance” and
under the sub-heading “Year-by-Year Returns”, that shows, in
chronological order with the most recent year on the right of the
bar chart, the annual total return of the investment fund for the
lesser of
(a)
each of the ten most recently completed financial years;
and
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(b)
each of the completed financial years in which the
investment fund has been in existence and which the
investment fund was a reporting issuer.
(2)
Provide an introduction to the bar chart that
(a)
indicates that the bar chart shows the investment fund’s
annual performance for each of the years shown, and
illustrates how the investment fund’s performance has
changed from year to year; and
(b)
indicates that the bar chart shows, in percentage terms, how
much an investment made on the first day of each financial
year would have grown or decreased by the last day of each
financial year.
(3)
If the investment fund holds short portfolio positions, show
separately the annual total return for both the long portfolio
positions and the short portfolio positions in addition to the overall
total return.
4.3
Annual Compound Returns
(1)
If the investment fund is not a money market fund, disclose, in the
form of a table, under the sub-heading “Annual Compound
Returns”
(a)
the investment fund’s past performance for the ten, five,
three and one year periods ended on the last day of the
investment fund’s financial year; and
(b)
if the investment fund was a reporting issuer for more than
one and less than ten years, the investment fund’s past
performance since the inception of the investment fund.
(2)
Include in the table, for the same periods for which the annual
compound returns of the investment fund are provided, the
historical annual compound total returns or changes of
(a)
one or more appropriate broad-based securities market
indices; and
(b)
at the option of the investment fund, one or more non-
securities indices or narrowly-based market indices that
reflect the market sectors in which the investment fund
invests.
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(3)
Include a brief description of the broad-based securities market
index (or indices) and provide a discussion of the relative
performance of the investment fund as compared to that index.
(4)
If the investment fund includes in the table an index that is
different from the one included in the most recently filed MRFP,
explain the reasons for the change and include the disclosure
required by this Item for both the new and former indices.
(5)
Calculate the annual compound return in accordance with the
requirements of Part 15 of National Instrument 81-102.
(6)
If the investment fund holds short portfolio positions, show
separately the annual compound returns for both the long and the
short portfolio positions in addition to the overall annual
compound returns.
INSTRUCTIONS:
(1)
An “appropriate broad-based securities market index” is one that
(a)
is administered by an organization that is not affiliated with any of
the mutual fund, its manager, portfolio adviser or principal
distributor, unless the index is widely recognized and used; and
(b)
has been adjusted by its administrator to reflect the reinvestment of
dividends on securities in the index or interest on debt.
(2)
It may be appropriate for an investment fund that invests in more than one
type of security to compare its performance to more than one relevant
index. For example, a balanced fund may wish to compare its
performance to both a bond index and an equity index.
(3)
In addition to the appropriate broad-based securities market index, the
investment fund may compare its performance to other financial or
narrowly-based securities indices (or a blend of indices) that reflect the
market sectors in which the investment fund invests or that provide useful
comparatives to the performance of the investment fund. For example, an
investment fund could compare its performance to an index that measured
the performance of certain sectors of the stock market (e.g.
communications companies, financial sector companies, etc.) or to a non-
securities index, such as the Consumer Price Index, so long as the
comparison is not misleading.
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4.4
Scholarship Plans
An investment fund that is a scholarship plan must comply with this Item,
except that year-by-year returns and annual compound returns must be
calculated based on the scholarship plan’s total portfolio adjusted for cash
flows.
Item 5 – Summary of Investment Portfolio
(1)
Include, under the heading “Summary of Investment Portfolio”, a
summary of the investment fund’s portfolio as at the end of the financial
year of the investment fund to which the annual MRFP pertains.
(2)
The summary of investment portfolio
(a)
must break down the entire portfolio of the investment fund into
appropriate subgroups, and must show the percentage of the
aggregate net asset value of the investment fund constituted by
each subgroup;
(b)
must disclose the top 25 positions held by the investment fund,
each expressed as a percentage of net asset value of the investment
fund;
(c)
must disclose long positions separately from short positions; and
(d)
must disclose separately the total percentage of net asset value
represented by the long positions and by the short positions.
(3)
Indicate that the summary of investment portfolio may change due to
ongoing portfolio transactions of the investment fund and a quarterly
update is available.
INSTRUCTIONS:
(1)
The summary of investment portfolio is designed to give the reader an
easily accessible snapshot of the portfolio of the investment fund as at the
end of the financial year for which the annual MRFP pertains. As with the
other components of the annual MRFP, care should be taken to ensure
that the information in the summary of investment portfolio is presented in
an easily accessible and understandable way.
(2)
The Canadian securities regulatory authorities have not prescribed the
names of the categories into which the portfolio should be broken down.
An investment fund should use the most appropriate categories given the
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nature of the fund. If appropriate, an investment fund may use more than
one breakdown, for instance showing the portfolio of the investment fund
broken down according to security type, industry, geographical locations,
etc.
(3)
Instead of a table, the disclosure required by (2)(a) of this Item may be
presented in the form of a pie chart.
(4)
If the investment fund owns more than one class of securities of an issuer,
those classes should be aggregated for the purposes of this Item, however,
debt and equity securities of an issuer must not be aggregated.
(5)
Portfolio assets other than securities should be aggregated if they have
substantially similar investment risks and profiles. For instance, gold
certificates should be aggregated, even if they are issued by different
financial institutions.
(6)
Treat cash and cash equivalents as one separate discrete category.
(7)
In determining its holdings for purposes of the disclosure required by this
Item, an investment fund should, for each long position in a derivative that
is held by the investment fund for purposes other than hedging and for
each index participation unit held by the investment fund, consider that it
holds directly the underlying interest of that derivative or its proportionate
share of the securities held by the issuer of the index participation unit.
(8)
If an investment fund invests substantially all of its assets directly or
indirectly (through the use of derivatives) in securities of one other fund,
list only the 25 largest holdings of the other investment fund by percentage
of net asset value of the other investment fund, as disclosed by the other
investment fund as at the most recent quarter end.
(9)
If the investment fund invests in other investment funds, include a
statement to the effect that the prospectus and other information about the
underlying investment funds are available on the internet at
www.sedar.com.
(10)
A labour sponsored or venture capital fund must disclose its top 25
positions, but is not required to express any of its venture investments as a
percentage of the fund’s net asset value if it complies with the conditions
in Part 8 of the Instrument to be exempt from disclosing the individual
current values of venture investments in its statement of investment
portfolio.
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Item 6 – Other Material Information
Provide any other material information relating to the investment fund not
otherwise required to be disclosed by this Part, including information required to
be disclosed pursuant to an order or exemption received by the investment fund.
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PART C – CONTENT REQUIREMENTS FOR INTERIM MANAGEMENT
REPORT OF FUND PERFORMANCE
Item 1 – First Page Disclosure
The first page of an interim MRFP must contain disclosure in substantially the
following words:
“This interim management report of fund performance contains financial
highlights, but does not contain either interim or annual financial statements of
the investment fund. You can get a copy of the interim or annual financial
statements at your request, and at no cost, by calling [toll-free/collect call
telephone number], by writing to us at [insert address] or by visiting our website
at [insert address] or SEDAR at www.sedar.com.
Securityholders may also contact us using one of these methods to request a copy
of the investment fund’s proxy voting policies and procedures, proxy voting
disclosure record, or quarterly portfolio disclosure.”
INSTRUCTION:
If the MRFP is bound with the financial statements of the investment fund, modify the first
page wording appropriately.
Item 2 – Management Discussion of Fund Performance
2.1
Results of Operations
Update the analysis of the investment fund’s results of operations provided
in the most recent annual MRFP. Discuss any material changes to any of
the components listed in Item 2.3 of Part B.
2.2
Recent Developments
If there have been any significant developments affecting the investment
fund since the most recent annual MRFP, discuss those developments and
their impact on the investment fund, in accordance with the requirements
of Item 2.4 of Part B.
2.3
Related Party Transactions
Provide the disclosure required by Item 2.5 of Part B.
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INSTRUCTIONS:
(1)
If the first MRFP you file in this Form is not an annual MRFP, you must
provide all the disclosure required by Part B, except for Items 3 and 4, in
the first MRFP.
(2)
The discussion in an interim MRFP is intended to update the reader on
material developments since the date of the most recent annual MRFP.
You may assume the reader has access to your annual MRFP, so it is not
necessary to restate all of the information contained in the most recent
annual discussion.
(3)
The discussion in an interim MRFP should deal with the financial period
to which the interim MRFP pertains.
Item 3 – Financial Highlights
(1)
Provide the disclosure required by Item 3.1 of Part B, with an additional
column on the left of the table representing the interim period.
(2)
Provide the disclosure required by Item 3.3 of Part B of the form.
INSTRUCTION:
If the distributions cannot be allocated by type at the end of the interim period, provide
only total distributions by unit/share.
Item 4 – Past Performance
Provide a bar chart prepared in accordance with Item 4.2 of Part B, and include
the total return calculated for the interim period.
Item 5 – Summary of Investment Portfolio
(1)
Include a summary of investment portfolio as at the end of the financial
period to which the interim MRFP pertains.
(2)
The summary of investment portfolio must be prepared in accordance with
Item 5 of Part B.
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Item 6 – Other Material Information
Provide any other material information relating to the investment fund not otherwise
required to be disclosed by this Part including information required to be disclosed
pursuant to an order or exemption received by the investment fund.
[Amended September 8, 2008]
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.