The Alberta Gazette

Part I

Vol. 104 Edmonton, Friday, September 5, 2008 Special Issue

GOVERNMENT NOTICES

Alberta Securities Commission

AMENDMENTS TO

National Instrument 81-106 Investment Fund Continuous Disclosure

(Securities Act)

Made as a rule by the Alberta Securities Commission on May 14, 2008 pursuant to

section 223 and 224 of the Securities Act.

Section 1.1 of NI 81-106 Investment Fund Continuous Disclosure is amended by

repealing the definition of "net asset value" and substituting the following:

""net asset value" means the value of the total assets of the investment fund

less the value of the total liabilities of the investment fund, as at a specific

date, determined in accordance with

Part 14;"

Section 2.9 of NI 81-106 Investment Fund Continuous Disclosure is amended

(

a) in subparagraph (4)(a)(

i) by striking out "and a statement of investment

portfolio"; and

(

b) in subparagraph (4)(b)(

i) by striking out "and a statement of investment

portfolio".

Section 2.10 of NI 81-106 Investment Fund Continuous Disclosure is amended

(

a) repealing paragraph (

a) and substituting the following:

"(

a) the investment fund terminating or ceasing to be a reporting issuer,";

and

(

b) repealing paragraph (

h) and substituting the following:

"(

h) if applicable, the names of each party that terminated or ceased to be a

reporting issuer following the transaction and of each continuing

entity;".

Section 3.1 of NI 81-106 Investment Fund Continuous Disclosure is amended in

item 15 by striking out "net asset value" and substituting "net assets".

Section 3.2 of NI 81-106 Investment Fund Continuous Disclosure is amended by

adding the following after item 10:

"10.1 commissions and other portfolio transaction costs.".

Section 3.6 of NI 81-106 Investment Fund Continuous Disclosure is amended by

(

a) repealing subparagraph 3.6(1)3. and substituting the following:

"3. to the extent the amount is ascertainable, the soft dollar portion of the

total commissions and other portfolio transaction costs paid or payable

to dealers by the investment fund, where the soft dollar portion is the

amount paid or payable for goods and services other than order

execution."; and

(

b) adding the following after subparagraph 3.6(1)4.:

"5. the net asset value per security as at the date of the financial statements

compared to the net assets per security as shown on the statement of

net assets, and an explanation of each of the differences between these

amounts.".

7. Subsection 3.11(2) of NI 81-106 Investment Fund Continuous Disclosure is

amended by striking out " "net asset value per security" " and substituting " "net

assets per security" ".

8. Subsection 8.2(

c) of NI 81-106 Investment Fund Continuous Disclosure is

amended by striking out "net asset value" and substituting "net assets".

Section 8.4 of NI 81-106 Investment Fund Continuous Disclosure is amended by

striking out "net asset value" and substituting "net assets".

Section 9.2 of NI 81-106 Investment Fund Continuous Disclosure is repealed and

the following is substituted:

"9.2 Requirement to File Annual Information Form - An investment

fund must file an annual information form if the investment fund has not

obtained a receipt for a prospectus during the last 12 months preceding its

financial year end."

Section 10.3 of NI 81-106 Investment Fund Continuous Disclosure is amended

by striking out "reporting issuer" and substituting "reporting issuer or the

equivalent of a reporting issuer in a foreign jurisdiction".

Section 14.2 of NI 81-106 Investment Fund Continuous Disclosure is amended

(

a) by repealing subsection (1) and substituting the following:

"

(1) The net asset value of an investment fund must be calculated using the

fair value of the investment fund's assets and liabilities.";

(

b) by adding the following after subsection (1):

"

(1.1) The net asset value of an investment fund must include the income and

expenses of the investment fund accrued up to the date of calculation

of the net asset value.

(1.2) For the purposes of subsection (1), fair value means

(

a) the market value based on reported prices and quotations in an

active market, or

(

b) if the market value is not available, or the manager of the

investment fund believes that it is unreliable, a value that is fair

and reasonable in all the relevant circumstances.

(1.3) The manager of an investment fund must

(

a) establish and maintain appropriate written policies and procedures

for determining the fair value of the investment fund's assets and

liabilities; and

(

b) consistently follow those policies and procedures.

(1.4) The manager of an investment fund must maintain a record of the

determination of fair value and the reasons supporting that

determination.";

(

c) in subsection (2) by striking out "Despite subsection (1), for" and

substituting "For"; and

(

d) in subsection (5) by striking out "Despite subsection (3)" and substituting

"Despite paragraph (3)(a)".

Section 15.1 of NI 81-106 Investment Fund Continuous Disclosure is amended

by repealing clause (1)(a)(i)(

A) and substituting the following:

"(

A) total expenses of the investment fund, excluding commissions and

other portfolio transaction costs, before income taxes, for the

financial year or interim period, as shown on its statement of

operations; and".

Section 15.2 of NI 81-106 Investment Fund Continuous Disclosure is amended

(

a) repealing subparagraph (1)(a)(

i) and substituting the following:

"(

i) multiplying the total expenses of each underlying investment fund,

excluding commissions and other portfolio transaction costs, before

income taxes, for the financial year or interim period, by"; and

(

b) repealing paragraph (1)(

b) and substituting the following:

"(

b) the total expenses of the investment fund, excluding commissions and

other portfolio transaction costs, before income taxes, for the period.".

15. Sections 18.2, 18.3, 18.4 and 18.5 of NI 81-106 Investment Fund Continuous

Disclosure are repealed.

16. This Instrument comes into force on September 8, 2008.

AMENDMENTS TO

Form 81-106F1 Contents of Annual and Interim Management

Report of Fund Performance

(Securities Act)

Made as a rule by the Alberta Securities Commission on May 14, 2008 pursuant to

section 223 and 224 of the Securities Act.

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]

[insert

year]

[insert

year]

[insert

year]

[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

(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]

[insert

year]

[insert

year]

[insert

year]

[insert

year]

Total net asset value (000's)

(1) Number of [unit/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.";

(

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);

(

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.

AMENDMENTS TO

Form 81-101F2 Contents of Annual Information Form

(Securities Act)

Made as a rule by the Alberta Securities Commission on May 14, 2008 pursuant to

section 223 and 224 of the Securities Act.

1. Form 81-101F2 Contents of Annual Information Form is amended in Item 6 by

adding the following after subsection (1):

"

(1.1) If the valuation principles and practices established by the manager

differ from Canadian GAAP, describe the differences."

2. This Instrument comes into force on September 8, 2008.

AMENDMENTS TO

National Instrument 81-102 Mutual Funds

(Securities Act)

Made as a rule by the Alberta Securities Commission on May 14, 2008 pursuant to

section 223 and 224 of the Securities Act.

Section 1.1 of NI 81-102 Mutual Funds is amended by adding the following after

the definition of "mutual fund conflict of interest reporting requirements":

""net asset value" means the value of the total assets of the investment fund

less the value of the total liabilities of the investment fund, as at a specific

date, determined in accordance with

Part 14 of National Instrument 81-106

Investment Fund Continuous Disclosure;".

Section 9.4 of NI 81-102 Mutual Funds is amended by repealing subsection (3).

Section 10.4 of NI 81-102 Mutual Funds is amended by repealing subsection (4).

4. This Instrument comes into force on September 8, 2008.

AMENDMENTS TO

Form 41-101F2 Information Required in an Investment Fund

Prospectus

(Securities Act)

Made as a rule by the Alberta Securities Commission on May 14, 2008 pursuant to

section 223 and 224 of the Securities Act.

1. Form 41-101F2 Information Required in an Investment Fund Prospectus is

amended in Item 20.2 by

(

a) striking out "and" at the end of subsection (a); and

(

b) adding the following after subsection (a):

"(a.1) If the valuation principles and practices established by the manager

differ from Canadian GAAP, describe the differences, and".

2. This Instrument comes into force on September 8, 2008.

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