The Funds are considered dealer managed investment funds and follow the dealer manager provisions prescribed by NI 81-102 – Investment Funds (the "NI 81-102").
The Funds cannot knowingly make an investment during, or for 60 days after, the distribution period (the "Prohibition Period") in which an affiliate or associate of 1832 Asset Management L.P., the manager and/or the portfolio advisor of the Funds ("1832 AM"), such as Scotia Capital Inc., acts as an underwriter or agent in an offering of equity securities, unless the offering is being made under a prospectus and such purchases are made in compliance with the approval requirements of National Instrument 81-107 – Independent Review Committee for Investment Funds ("NI 81-107").
The Funds, along with other mutual funds managed by 1832 AM, can rely on exemptive relief from the Canadian securities regulatory authorities to invest in private placement offerings of equity securities of an issuer during the Prohibition Period even if Scotia Capital Inc., an affiliate of 1832 AM, acts as underwriter in offerings of securities of the same class, provided the issuer is at the time a reporting issuer in at least one province of Canada and the Independent Review Committee of the Fund (the "IRC") approves of the investment in accordance with the approval requirements of NI 81-107.
The Funds, along with the other mutual funds managed by 1832 AM, have obtained exemptive relief from the Canadian securities regulatory authorities to purchase debt securities of an issuer that does not have an approved credit rating from an approved credit rating organization in a distribution for which a dealer related to 1832 AM, such as Scotia Capital Inc., acts as an underwriter or agent, provided such purchases are made in compliance with the approval requirements of NI 81-107 and certain other conditions.
The Funds, along with other mutual funds managed by 1832 AM, have obtained exemptive relief from the Canadian securities regulatory authorities that permits the Funds to invest in equity securities of an issuer that is not a reporting issuer in Canada during the Prohibition Period, whether relating to a private placement of the issuer in Canada or the United States or a prospectus offering of the issuer in the United States of securities of the same class even if an affiliate of 1832 AM acts as underwriter in the private placement or prospectus offering, provided the issuer is at the time a registrant in the United States and the IRC of the Fund approves of the investment in accordance with certain other conditions.
In addition to the above exemptive relief, the Funds may from time to time be granted exemptions from NI 81-102 to permit them to invest during the Prohibition Period in securities of an issuer, in which an affiliate or associate of 1832 AM, such as Scotia Capital Inc., acts as an underwriter or agent in the issuer’s distribution of securities of the same class, where the Funds are not able to do so in accordance with NI 81-107 or the exemptive relief described above.