BCSC

Exemption Orders (Discretionary)

AIM FUNDS MANAGEMENT INC.

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
BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN, MANITOBA,
ONTARIO, QUÉBEC, NOVA SCOTIA, NEW BRUNSWICK, NEWFOUNDLAND AND PRINCE EDWARD ISLAND

AND

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

AND

IN THE MATTER OF
AIM FUNDS MANAGEMENT INC.

MRRS DECISION DOCUMENT

WHEREAS the Canadian securities regulatory authority or regulator (the “Decision Maker”) in each of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, Nova Scotia, New Brunswick, Newfoundland and Prince Edward Island (the “Jurisdictions”) has received an application (the “Application”) from AIM Funds Management Inc. (“AIM”), the manager of (i) AIM Canada Income Class, AIM Canada Value Class and AIM Canada Growth Class of AIM Canada Fund Inc., (ii) AIM Short-Term Income Class, AIM America Growth Class, AIM Global Theme Class, AIM Pacific Growth Class, AIM Latin America Growth Class, AIM Global Health Sciences Class, AIM Global Natural Resources Class and AIM Global Telecommunications Class of AIM Global Fund Inc. and (iii) AIM Canada Money Market Fund, AIM Canadian Bond Fund, AIM Canadian Balanced Fund, AIM Canadian Premier Fund, AIM American Premier Fund, AIM American Aggressive Growth Fund, AIM Global Bond Fund, AIM Global Growth and Income Fund, AIM International Value Fund, AIM European Growth Fund, AIM Global Health Sciences Fund and AIM Global Technology Fund (together, the “Funds”) for a decision pursuant to the securities legislation of the Jurisdictions (the “Legislation”) that the time limits pertaining to the distribution of units under the simplified prospectus and annual information form (collectively the “Prospectus”) of the Funds be extended to those time limits that would be applicable if the lapse date of the Prospectus was October 25, 2000.

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

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

1. AIM is a corporation incorporated under the laws of Ontario. AIM is the manager, trustee, distributor and promoter of those Funds that are organized as open-ended mutual fund trusts.

2. Each of AIM Canada Fund Inc. and AIM Global Fund Inc. are mutual fund corporations incorporated under the laws of Ontario. Each of these corporations is authorized to issue classes of mutual fund shares. AIM is the manager, distributor and promoter of those Funds that are issued as classes of mutual fund shares of these corporations.

3. The Funds are reporting issuers under the Legislation and are not in default of any filing requirements of the Legislation or the Regulations made thereunder.

4. The Funds are presently offered for sale on a continuous basis in each of the provinces and territories of Canada through the Prospectus.

5. A merger of AIM Global Infrastructure Class into AIM Global Telecommunication Class was completed effective June 23, 2000.

6. AIM faces several issues in connection with the renewal of the Prospectus:

(a) AIM is hoping to introduce a multi-series structure for the Funds in the new simplified prospectus and annual information form. This multi-series structure would permit AIM to charge differing management fees directly to certain unitholders of a Fund and would permit AIM the flexibility to allocate administrative and operating expenses depending on the nature of the investor. AIM has filed an application with Canada Customs and Revenue Agency requesting an advance tax ruling with respect to this multi-series structure of units for the Funds and is awaiting that ruling;

(b) AIM requires additional time to plan and co-ordinate the consolidation of the Funds, as well as other mutual funds managed by AIM, with mutual funds of Trimark Investment Management Inc., resulting from the recently announced acquisition of Trimark by the parent company of AIM; and

(c) AIM anticipates that such fund consolidations and the related disclosure to unitholders will cause some delays in the completion of the new prospectus and annual information form relating to the Funds.

7. Since the date of the Prospectus no material change has occurred and no amendments to the simplified prospectus have been made. Accordingly, the Prospectus represents up to date information regarding each of the mutual funds offered. The extension requested will not affect the currency or accuracy of the information contained therein and accordingly will not be prejudicial to the public interest.

8. Under the Legislation, the earliest lapse date (the “Lapse Date”) for distribution of securities of the Funds in the Jurisdictions is August 25, 2000.

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 each 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 25, 2000.

DATED at Toronto on August 10th, 2000.

Rebecca Cowdery
Manager, Investment Funds