Headnote

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
QUEBEC, BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN,
MANITOBA, ONTARIO, NOVA SCOTIA,
PRINCE EDWARD ISLAND AND NEWFOUNDLAND

AND

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

AND

IN THE MATTER OF

MAESTRAL MONEY MARKET FUND, MAESTRAL CANADIAN BOND FUND, MAESTRAL ASSET ALLOCATION FUND, MAESTRAL CANADIAN EQUITY FUND, MAESTRAL GROWTH EQUITY FUND, MAESTRAL AMERICAN EQUITY FUND, MAESTRAL GLOBAL EQUITY FUND, MAESTRAL GLOBAL EQUITY RSP FUND, MAESTRAL TECHNOLOGY & TELECOMMUNICATIONS FUND, MAESTRAL HEALTH & BIOTECHNOLOGY FUND

MRRS DECISION DOCUMENT

WHEREAS the Canadian securities regulatory authority or regulator (the “Decision Maker”) in each of the Provinces of Quebec, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, Prince Edward Island, and Newfoundland (the “Jurisdictions”) has received an application (the “Application”) from Desjardins Trust Investment Services Inc. (the “Manager”), the manager of Maestral Money Market Fund, Maestral Canadian Bond Fund, Maestral Asset Allocation Fund, Maestral Canadian Equity Fund, Maestral Growth Equity Fund, Maestral American Equity Fund, Maestral Global Equity Fund, Maestral Global Equity RSP Fund, Maestral Technology & Telecommunications Fund, Maestral Health & Biotechnology Fund (together, the “Funds”) for a decision pursuant to the securities legislation of the Jurisdictions (the “Legislation”) that the lapse date for the renewal of the simplified prospectus and annual information form of the securities of the Funds (the “Prospectus”) be extended to those time limits that would be applicable if the lapse date of the Prospectus was October 9, 2001;

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

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

(a) The Manager is a corporation incorporated under the laws of Quebec. The Manager is the manager of the Funds.

(b) The Funds are open-ended mutual fund trusts established by the Manager under the laws of Quebec.

(c) The Funds are reporting issuers under the Legislation and are not in default of any requirements of the Legislation or the regulations made thereunder.

(d) Pursuant to the Legislation or the regulations made thereunder, the earliest lapse date (the “Lapse Date”) for distribution of securities of the Funds was September 29, 2001.

(e) The Funds filed a pro forma simplified prospectus and annual information form in all Jurisdictions on August 29, 2001.

(f) Since September 29, 2000, the date of the Prospectus, no material change has occurred and no amendments have been made to the Prospectus. Accordingly, the Prospectus represents up to date information regarding each of the Funds offered therein. The extension requested will not affect the currency or accuracy of the information contained in the Prospectus of the Funds and accordingly will not be prejudicial to the public interest.

(g) In order to permit the Manager sufficient time to finalize the renewal prospectus and obtain the requisite approvals of the Manager and the trustee of the Funds, the Manager has requested an extension of the Lapse Date to October 9, 2001.

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 are 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 limits provided by Legislation as they apply to a distribution of securities under a prospectus are hereby extended to the time limits that would be applicable if the Lapse Date for the distribution of securities under the Prospectus of the Funds was October 9, 2001 and that the offering of securities of the Funds may continue provided that:

(a) a final simplified prospectus and annual information form are filed no later than 10 days after October 9, 2001 and receipts for the simplified prospectus and annual information form are obtained no later than 20 days after October 9, 2001;

(b) all unitholders of record of the Funds in Alberta, in Nova Scotia, in Saskatchewan and in British Columbia (the “Affected Unitholers”) 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 the Manager 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) The Manager 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, the Manager 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 at Montreal, Quebec this 16 day of October, 2001.


Jean-François Bernier
Le Directeur des marchés des capitaux