What category of investment fund should be selected on the investment fund’s profile?

Below is a summary of each investment fund category to assist in the correct selection,

Conventional Mutual Fund

Mutual funds that are not alternative mutual funds or ETFs are commonly known as conventional mutual funds.

These funds are considered mutual funds and are typically offered using a simplified prospectus.

Hybrid

Hybrids are simplified prospectus qualified mutual funds with mutual fund series together with ETF

series.

These funds are considered mutual funds and are typically offered using a simplified prospectus but can also be offered using a long form prospectus.

Alternative Mutual Fund

means a mutual fund, other than a precious metals fund, that has adopted fundamental investment objectives that permit it to invest in physical commodities or specified derivatives, to borrow cash or engage in short selling in a manner not permitted for other mutual funds under NI 81-102.

These funds are considered mutual funds and are typically offered using a simplified prospectus.

Alternative Hybrid

Hybrids are simplified prospectus qualified mutual funds with mutual fund series together with ETF series that meet the definition of an alternative mutual fund/alternative ETF.

These funds are considered mutual funds and are typically offered using a simplified prospectus but can also be offered using a long form prospectus.

Exchange Traded Funds (ETF)

A mutual fund that is exchange-traded.

These funds are considered mutual funds and are typically offered using a long form prospectus.

Alternative ETF

an ETF that satisfies the definition of an “alternative mutual fund.”

These funds are considered mutual funds and are typically offered using a long form prospectus.

Split Share Corp.

A prospectus fund that offers two distinct classes of shares: Class A shares and Preferred shares. They typically invest in an underlying portfolio of dividend paying securities. Generally, the Class A shares capture the movements of the underlying securities, and the Preferred shares receive fixed periodic payments.

These funds are in some cases mutual funds and are typically offered using a long form, short form or shelf prospectus.

Labour Sponsored or Venture Capital Fund (NI 81-106)

means an investment fund that is,

(a) a labour sponsored investment fund corporation or a labour sponsored venture capital corporation under provincial legislation,

(b) a registered or prescribed labour sponsored venture capital corporation as defined in the ITA

(c) an EVCC, or

(d) a VCC.

EVCC means an employee venture capital corporation that does not have a restricted constitution, and is registered under Part 2 of the Employee Investment Act (British Columbia), R.S.B.C. 1996 c. 112, and whose business objective is making multiple investments.

VCC means a venture capital corporation registered under Part 1 of the Small Business Venture Capital Act (British Columbia), R.S.B.C. 1996 c. 429, whose business objective is making multiple investments.

These funds are typically offered using a long form prospectus.

Non-Redeemable Investment Fund (NRIF) (also called closed-end funds)

means an issuer,

(a) whose primary purpose is to invest money provided by its securityholders,

(b) that does not invest,

(i) for the purpose of exercising or seeking to exercise control of an issuer, other than an issuer that is a mutual fund or a nonredeemable investment fund, or
(ii) for the purpose of being actively involved in the management of any issuer in which it invests, other than an issuer that is a mutual fund or a non-redeemable investment fund, and

(c) that is not a mutual fund

These funds are typically offered using a long form prospectus.

Development Capital Investment Fund (Québec only)

Investment funds that are reporting issuers constituted under the following Acts:

(1) an Act constituting Capital régional et coopératif Desjardins (chapter C-6.1);

(2) an Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi (chapter F-3.1.2); and

(3) an Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.) (chapter F-3.2.1).

These funds are typically offered using a short form prospectus.

Flow Through LP

A prospectus fund that invests in a portfolio of flow-through shares of certain issuers in order to generally achieve capital appreciation and tax benefits for its investors.

These funds are offered using a long form prospectus.

Scholarship Plan (as defined in NI 81-106)

means an arrangement under which contributions to education savings plans are pooled to provide scholarship awards to designated beneficiaries.

Scholarship Plans are not the same as Target Date Funds.  Scholarship Plans are offered using Detailed Plan Disclosure and Plan Summary documents.

Other

Choose only if the investment fund has unique features that do not fit within one of the other categories.

Please note that the fees for certain filings, in certain jurisdictions, vary depending on if the category of fund is considered a mutual fund. Selecting the wrong category of investment fund may result in SEDAR+ charging incorrect fees. Refer to the definition of a mutual fund in your local jurisdiction’s legislation.