THE MANITOBA SECURITIES COMMISSION MSC RULE 2008-12F1 (Section 149.1, The Securities Act) FORM 81-106F1 CONTENTS OF ANNUAL AND INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE AMENDMENT INSTRUMENT 1. Form 81-106F1 Contents of Annual and Interim Management Report of Fund Performance is amended in Item 1 of Part A by adding the following after subsection (e): "(f) Terminology All references to "net assets" or "net assets per security" in this Form are references to net assets determined in accordance with Canadian GAAP as presented in the financial statements of the investment fund. All references to "net asset value" or "net asset value per security" in this Form are references to net asset value determined in accordance with Part 14 of the Instrument. Investment funds must use net assets as shown on the financial statements in the "The Fund’s Net Assets per [Unit/Share]" table. All other calculations for the purposes of the MRFP must be made using net asset value.". 2. Form 81-106F1 Contents of Annual and Interim Management Report of Fund Performance is amended in Item 3 of Part B by (a) striking out the sentence "This information is derived from the Fund’s audited annual financial statements." at the end of the introduction in subsection 3.1(1); (b) repealing the "The Fund’s Net Asset Value (NAV) per [Unit/Share]" table in subsection 3.1(1) and substituting the following: The Fund’s Net Assets per [Unit/Share] (1) [insert year] Net Assets, beginning of year $ Increase (decrease) from operations: total revenue $ total expenses $ realized gains (losses) for the period $ unrealized gains (losses) for the period $ Total increase (decrease) from $ operations (2) Distributions: From income (excluding dividends) $ From dividends $ From capital gains $ Return of capital $ Total Annual Distributions (3) $ Net assets at [insert last day of $ financial year] of year shown [insert [insert [insert [insert year] year] year] year] $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
- 2 - (1) This information is derived from the Fund’s audited annual financial statements. The net assets per security presented in the financial statements differs from the net asset value calculated for fund pricing purposes. [An explanation of these differences can be found in the notes to the financial statements./This difference is due to [explain].] (2) Net assets and distributions are based on the actual number of [units/shares] outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of [units/shares] outstanding over the financial period. (3) Distributions were [paid in cash/reinvested in additional [units/shares] of the Fund, or both]. (c) repealing the "Ratios and Supplemental Data" table in subsection 3.1(1) and substituting the following: Ratios and Supplemental Data [insert year] Total net asset value (000’s) (1) $ Number of [units/shares] outstanding (1) Management expense ratio (2) % Management expense ratio before % waivers or absorptions Trading expense ratio (3) % Portfolio turnover rate (4) % Net asset value per [unit/share] $ Closing market price [if applicable] $ (1) This information is provided as at [insert date of end of financial year] of the year shown. (2) Management expense ratio is based on total expenses (excluding commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average net asset value during the period. (3) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period. (4) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio adviser manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (d) repealing subsection 3.1(2); (e) repealing subsection 3.1(6) and substituting the following: "(6) Except for net assets, net asset value and distributions, calculate per unit/share values on the basis of the weighted average number of unit/shares outstanding over the financial period."; [insert [insert [insert [insert year] year] year] year] $ $ $ $ % % % % % % % % % % % % % % % % $ $ $ $ $ $ $ $
- 3 - (f) repealing subsection 3.1(12) and substituting the following: "(12) (a) Calculate the trading expense ratio by dividing (i) the total commissions and other portfolio transaction costs disclosed in the statement of operations, by (ii) the same denominator used to calculate the management expense ratio. (b) If an investment fund invests in securities of other investment funds, calculate the trading expense ratio using the methodology required for the calculation of the management expense ratio in section 15.2 of the Instrument, making reasonable assumptions or estimates when necessary."; (g) repealing subsection 3.1(13) and substituting the following: "(13) Provide the closing market price only if the investment fund is traded on an exchange."; (h) repealing the introduction to the "Financial & Operating Highlights (with comparative figures)" table in section 3.2 and substituting the following: "An investment fund that is a scholarship plan must comply with Item 3.1, except that the following table must replace "The Fund’s Net Assets per [Unit/Share]" table and the "Ratios and Supplemental Data" table."; and (i) repealing the Instruction in section 3.3 and substituting the following: "The disclosure must list the major services paid for out of the management fees, including portfolio adviser compensation, waived or absorbed expenses, trailing commissions and sales commissions, if applicable. Services may be grouped together so that commercially sensitive information, such as the specific compensation paid to a portfolio adviser or the manager’s profit, is not determinable.". 3. Form 81-106F1 Contents of Annual and Interim Management Report of Fund Performance is amended in Item 4 of Part B by (a) repealing subsection 4.1(3) and substituting the following: "(3) Set out in the footnotes to the chart or table required by this Item the assumptions relevant to the calculation of the performance information, including any assumptions or estimates made in order to calculate the return on the short portfolio, if applicable. Include a statement of the significance of the assumption that distributions are reinvested for taxable investments."; and (b) striking out "or" in paragraph 4.3(1)(a) and substituting "and". 4. Form 81-106F1 Contents of Annual and Interim Management Report of Fund Performance is amended in Item 5 of Part B by (a) striking out "net assets" and substituting "net asset value" in paragraph (2)(b); (b) striking out "net assets" and substituting "net asset value" in paragraph (2)(d); (c) striking out "another" and substituting "one other" in Instruction (8);
- 4 - (d) striking out "net assets" and substituting "net asset value" in Instruction (8); and (e) adding the following after Instruction (9): "(10) A labour sponsored or venture capital fund must disclose its top 25 positions, but is not required to express any of its venture investments as a percentage of the fund’s net asset value if it complies with the conditions in Part 8 of the Instrument to be exempt from disclosing the individual current values of venture investments in its statement of investment portfolio.". 5. This Instrument comes into force on September 8, 2008.
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.