Form 50 - Short form of prospectus of a mutual fund [F - Rescinded]

This is the simplified prospectus required under section 61 (3) of the Securities Act and section 100 (2) of the Securities Rules.

FORM 50

Securities Act

Information Required to be Included in a
Simplified of Prospectus of a Mutual Fund

GENERAL INSTRUCTIONS:

The short form of prospectus is intended to be a concise presentation in plain language of the information required. The requirements and the instructions relating thereto should be read in light of this intention and the presentation of such information in the simplified of prospectus should reflect this intention.

Item 1 - Cover Statement

Language in substantially the following form should appear on the outside cover page of the simplified of prospectus:

"The information contained herein must be accompanied by the annual financial statements of the Fund for the last financial year and the auditors' report thereon, which statements and report are considered to form part of this document. As well, if subsequent financial statements have been filed with the Securities Commission a copy of the most recent of such subsequent statements must also accompany this document."

Item 2 - Introductory Statement

Language in substantially the following form should appear on the first page of the simplified of prospectus:

"This simplified of prospectus is a concise outline of the relevant information about the Fund which you should know before making a decision to purchase its securities. The Fund is required by law to fully disclose additional facts, related to this information, in an annual information form, financial statements and other material documents filed with securities regulatory authorities in each Province where the Fund's securities are offered, which documents collectively are known as the Fund's permanent information record.

Securities laws in Canada establish certain security holder rights which are described in this simplified of prospectus. These rights are based in part on other disclosures of the Fund found in the annual information form which is incorporated into this simplified of prospectus by reference, as well as upon disclosure contained in this simplified of prospectus. All of these rights are available to you even though you receive only this simplified of prospectus and accompanying financial statements.

The documents currently in the permanent information record may be obtained by you by writing to the Fund at:

or through a dealer."

Item 3 - Name and Formation of Issuer

State the full name of the issuer and the address of its head office. State the laws under which the issuer was formed and the manner and date of formation. If the issuer's name was changed during the past twelve months state its former name and the date on which it was changed. State the name and address of the promoter, if any.

Item 4 - Description of Business

Briefly describe the business of the issuer.

Item 5 - Risk Factors

(a) Where appropriate to a clear understanding by investors of the risk factors and speculative nature of the enterprise or of the securities being offered, an introductory statement shall be made on the first page summarizing the factors which make the purchase a risk or speculation. The information may be given in the body of the simplified of prospectus if an appropriate reference is made; on the first page to the risks and the speculative or promotional nature of the enterprise and a cross reference is made to the place in the simplified of prospectus where the information is contained.

(b) Where this is a risk that purchasers of the securities offered may become liable to make an additional contribution beyond the price of the security, disclose any information or facts that may bear on the security holder's assessment of risk associated with the investment.

Item 6 - Description of Shares or Units Offered

(a) State the description or the designation of the class of shares or units offered and furnish all material attributes and characteristics including, without limiting the generality of the foregoing, the following information:

(i) dividend rights;

(ii) voting rights;

(iii) liquidation or distribution rights;

(iv) pre-emptive rights;

(v) conversion rights;

(vi) redemption, purchase for cancellation or surrender provisions;

(vii) liability to further calls or to assessment by the issuer; and

(viii) provisions as to modification, amendment or variation of any such rights or provisions.

(b) If the rights of holders of such shares or units may be modified otherwise than in accordance with the provisions attaching to such shares or units or the provisions of the governing act relating thereto, so state and explain briefly.

Instructions

Item 7 - Price of Securities on Sale or Redemption

(a) Describe briefly the method followed or to be followed by the issuer in determining the price at which its securities will be offered for sale and redeemed and state the frequency with which the net asset is determined and the time when the price becomes effective.

(b) State, where applicable, the sales charge expressed as a percentage of the total amount paid by the purchaser and as a percentage of the net amount invested in securities of the issuer. Where these charges vary on a quantity basis give particulars of the quantities and the respective sales charges applicable thereto.

(c) Describe briefly the procedure followed or to be followed by the purchaser for securities on sale or redemption, including any special purchase plans which may exist and any penalty for early redemption. State, where applicable, any redemption charge expressed as a percentage of the redemption price on a quantity basis, give particulars of the quantities and the respective redemption charges applicable thereto.

(d) Describe briefly any specific right or requirement to reinvest the proceeds of dividends or similar distributions in the issuer's securities.

(e) Refer the purchaser to the annual information form for a detailed statement of the information required in this item.

Item 8 - Method of Distribution

Outline briefly the method of distribution of the securities being offered. If sales are to be effected through a person (the 'contractual distributor') pursuant to an arrangement with the issuer, give brief details of any arrangements with the contractual distributor. See Item 9.

Instructions:

Item 9 - Responsibility for Principal Functions

(a) Give a concise statement of the manner in which the following functions of the issuer are performed and who is responsible therefor, stating how such functions are co-ordinated and, to the extent that any such functions are not performed by bona fide employees of the issuer, the names and addresses of the persons responsible for performing such functions:

(i) management of the issuer other than management of the investment portfolio;

(ii) management of the investment portfolio;

(iii) providing investment analysis;

(iv) providing investment recommendations;

(v) making investment decisions;

(vi) purchase and sale of the investment portfolio and brokerage arrangements relating thereto;

(vii) distribution of the securities offered.

(b) Refer the purchaser to the annual information form for greater detail regarding the purchase and sale of the investment portfolio and brokerage arrangements relating thereto.

(c) Indicate the circumstances under which the management agreement may be terminated.

(d) Indicate conflicts of interest or potential conflicts of interest between the issuer and the persons named in answer to paragraph (a).

Instructions:

Item 10 - Management Fees

(a) Indicate the method of determining the amount of management fees and, distinguishing between those charged to the issuer and those charged directly to security holders, other expenses, if any, and make a cross reference to the financial statements for details as to the amount of management fees and other expenses, if any, which have been charged to the issuer.

(b) Set out in tabular form in the simplified of prospectus or by way of note to the financial statements, a record of management expense ratio comprising the aggregate of all fees and other expenses paid or payable by the issuer during each of the last five completed financial years as a percentage of average net assets under administration during each of those financial years. Such disclosure should also include a brief description of the method of calculating the percentage and a statement that the management expense ratio may vary from one mutual fund to another.

Instructions:

Item 11 - Investment Objectives and Practices

(a) Precisely state the investment objectives of the issuer.

(b) Refer the purchaser to the annual information form for information concerning restrictions on investment practices of the issuer in pursuing its objectives.

Instructions

Aims such as long-term capital appreciation or current income and the types of securities in which the issuer will invest should be described.

Item 12 - Dividends or Distributions

Indicate, by way of note to the financial statements, the amount of dividends or other distributions per share or unit paid by the issuer including income allocated to security holders by way of dividend reinvestment or otherwise during the latest financial year and each of the previous four completed financial years.

Instructions

Dividends should be set out on a per security basis, shown separately for each class of security in respect of each of the financial years. Appropriate adjustments should be made to reflect changes in capitalization during the period.

Item 13 - Tax Status of Security Holders

State in general terms the income tax consequences to the holders of the securities offered of:

(i) any distribution to such holders in the form of dividends or otherwise including amounts reinvested;

(ii) redemption of securities;

(iii) sale of securities;

(iv) transfers between mutual funds.

Item 14 - Legal Proceedings

Describe briefly any legal proceedings material to the issuer, to which the issuer is a party or of which any of its property is the subject.

Instructions

Include the name of the court or agency, the date instituted, the principal parties thereto, the nature of the claim, the amount claimed if any, whether the proceedings are being contested, and the present status of the proceedings.

Item 15 - Other Material Facts

Give particulars of any other material facts relating to the securities proposed to be offered which are not contained in the annual information form.

Item 16 - Auditors, Transfer Agent and Registrar

(a) State the name and address of the issuer's auditor.

(b) State the name of the issuer's transfer agent and registrar and the cities in which the registers of transfer of securities of the issuer are kept.

Item 17 Purchasers' Statutory Rights

Include the following statement in the simplified prospectus:

"Securities legislation in certain of the provinces provides purchasers with the right to withdraw from an agreement to purchase mutual fund shares or units within two business days after receipt of a simplified prospectus or within forty-eight hours after the receipt of a confirmation of a purchase of such securities. If the agreement is to purchase such securities under a contractual plan, the time period during which withdrawal may be made may be longer. In several of the provinces and territories securities legislation further provides a purchaser with remedies for rescission or, in some jurisdictions, damages where the simplified prospectus and any amendment contains a misrepresentation or is not delivered to the purchaser but such remedies must be exercised by the purchaser within the time limit prescribed by the securities legislation of his province or territory. The purchaser should refer to any applicable provisions of the securities legislation of his province or territory for the particulars of these rights or consult with a legal adviser."

Item 18 Identification

Each simplified prospectus shall bear encoding which identifies the date at which it becomes effective.

Instructions:

The date need not be written in full. In fact it is preferred that it be shown as for example, 30/05/85, or included in a printer's code together with quantity printed. The purpose is to identify which version of a simplified prospectus is the subject of a specific receipt.

February 1, 1987