Mutual Reliance Review System for Exemptive Relief Applications - application for mutual fund lapse date extension.

Applicable British Columbia Provisions

Securities Act, R.S.B.C. 1996, c.418, s. 70
Securities Rules, B.C. Reg. 194/97, s. 121, 122, 123 and 124.


IN THE MATTER OF THE SECURITIES LEGISLATION OF
QUÉBEC, BRITISH COLUMBIA, ALBERTA AND ONTARIO

AND

IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM FOR
EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF
ORBIT MUTUAL FUND MANAGEMENT LIMITED
ORBIT WORLD FUND,
ORBIT CANADIAN EQUITY FUND AND
ORBIT NORTH AMERICAN EQUITY FUND


MRRS DECISION DOCUMENT


WHEREAS the local securities regulatory authority or regulator (the “Decision Maker”) in each of the Provinces of Québec, British Columbia, Alberta and Ontario (the “Jurisdictions”) has received an application (the “Application”) from Orbit Mutual Fund Management Limited (“Orbit” or the “Manager”), Orbit World Fund, Orbit Canadian Equity Fund and Orbit North American Equity Fund (collectively, the “Funds”) for a decision, pursuant to the securities legislation of the Jurisdictions (the “Legislation”), extending the lapse date prescribed by the Legislation for the filing of the Funds final simplified prospectus and final annual information form up to March 31st, 2001 inclusively in order to enable them to continue the distribution of their securities beyond the Lapse Date (as defined in paragraph 4 below) of their simplified prospectus dated February 25th, 2000 (the “Current Prospectus”);

AND WHEREAS pursuant to the Mutual Reliance Review System for Exemptive Relief Applications (the “System”), the Québec Securities Commission is the principal regulator for this application;

AND WHEREAS it has been represented by the Manager to the Decision Makers that:

1. Orbit is a corporation established under the laws of Canada. It is the Manager, the Trustee and the Promoter of the Funds.

2. The Funds are open-ended mutual fund trusts established under the laws of the Province of Ontario by way of declarations of trust.

3. The Funds are a reporting issuers under the Legislation and are not default of any of the requirements of the Legislation or the regulations made thereunder.

4. The Funds’securities are currently distributed to the public in all the Jurisdictions pursuant to the Current Prospectus. The lapse date is February 25th, 2001 (British Columbia and Alberta) in certain Jurisdictions and March 11th, 2001 (Québec and Ontario) in certain other Jurisdictions (collectively, the “Lapse Date”), and the latest date for the filing of the final simplified prospectus and final annual information form is February 25th, 2001 in British Columbia and Alberta and March 11th, 2001 in Québec and Ontario.

5. Since the date of the Current Prospectus, no material change has occurred in respect of the Funds and no amendments have been made to the Prospectus.

6. In order that it may be determined if Orbit, acting as Trustee of the Funds, is governed or not by the Trust Companies and Savings Companies Act (R.S.Q., chapter S-29.01) the Manager has requested for an extension of the Lapse Date up to March 31st, 2001 inclusively.

AND WHEREAS pursuant to the System this MRRS Decision Document evidences the decision of each Decision Maker (collectively, the “Decision”);

AND WHEREAS each of the Decision Makers 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 Lapse Date, is hereby extended up to March 31st, 2001 inclusively and that the distribution of the securities of the Funds may continue provided that:

(a) a receipt for the final simplified prospectus is obtained from the Decision Makers within 20 days after March 31st, 2001 inclusively;

(b) all unitholders of record of the Funds in Alberta and in British Columbia (the “Affected Unitholders”) who purchased units of any Fund after the Lapse Date and before the date of this Decision Document are provided with the right (the “Cancellation Right”) to cancel such trades within 90 days of the receipt of a statement (the “Statement”) describing the Cancellation Right, which is to be mailed by Orbit to Affected Unitholders and to receive, upon the exercise of a Cancellation Right the purchase price paid on the acquisition of such units and all fees and expenses incurred in effecting such purchase (the net asset value per unit on the date of such a purchase by an Affected Unitholder is hereinafter defined as the “Purchase Price per Unit”);

(c) Orbit mails the Statement and a copy of this Order to Affected Unitholders no later than 10 business days after the date of this Order; and

(d) if the net asset value per unit of the relevant Fund on the date that an Affected Unitholder exercises the Cancellation Right is less than the Purchase Price per Unit, Orbit shall reimburse the relevant Fund the difference between the Purchase Price per Unit and the net asset value per unit on the date on which such Affected Unitholder exercises the Cancellation Right.

DATED this 9th day of March 2001.


Jean-François Bernier
Le directeur des marchés des capitaux