AGF Funds Inc. has received regulatory relief allowing its mutual funds to invest up to 10% of their portfolios in a variety of exchange-traded funds.
In a decision reported in Friday\u2019s OSC Bulletin, AGF has been granted exemptive relief to permit its mutual funds to invest up to 10% of net assets in leveraged ETFs, inverse ETFs, gold ETFs and leveraged gold ETFs traded on Canadian or U.S. stock exchanges, subject to certain conditions.
Without the exemption, mutual funds would be prohibited from owning these ETFs because some the underlying ETFs will not be qualified for distribution, and because they are not subject to certain securities rules, the decision notes.
The Ontario Securities Commission granted the relief, subject to certain conditions, including: that any investments in these ETFs are in accordance with the fundamental investment objectives of the mutual fund; the fund does not short securities of an underlying ETF; and, that the relief is disclosed in the funds\u2019 prospectus; among other conditions.
IE<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
Relief from OSC subject to certain conditions<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2324],"tags":[2946],"yst_prominent_words":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/269108"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=269108"}],"version-history":[{"count":0,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/269108\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=269108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=269108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=269108"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=269108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}