CI Mutual Funds Inc. - cl. 80 (b)(iii)

Headnote

Exemption from the requirement to deliver comparativeannual financial statements for the year ending December 31,2002 to registered securityholders of certain private mutualfunds.

Statutes Cited

Securities Act (Ontario), R.S.O. 1990 c. S.5,as am., ss. 79 and 80(b)(iii).

IN THE MATTER OF

THE SECURITIES ACT,

R.S.O. 1990, CHAPTER S.5,AS AMENDED (the "Act")

AND

THE FUNDS LISTED IN SCHEDULE"A"

(the "Funds")

ORDER

(clause 80 (b)(iii) of theAct)

UPON the application (the "Application")from CI Mutual Funds Inc. (the "Manager") and theFunds for an order pursuant to clause 80(b)(iii) of the Actfor relief from the requirement to send comparative annual financialstatements to the securityholders of the Funds and the investmentfunds hereinafter established and/or managed by the Managerunless they have requested to receive them;

AND UPON considering the Applicationand the recommendation of the staff of the Commission;

AND UPON the Manager having representedto the Commission that:

(a) The Manager is a corporation subsistingunder the laws of the Province of Ontario and is registeredunder the Act as an adviser in the categories of investmentcounsel and portfolio manager. The Manager is the managerof the Funds.

(b) Each existing Fund is a mutual fundin Ontario as defined in the Act and is not in default ofany requirements of the Act. Securities of the existingFunds are offered for sale on a continuous basis in eachof the provinces and territories of Canada pursuant to applicableprospectus exemptions and as such are not reporting issuers.

(c) Each of the Funds is required to deliverannually, within 140 days of its financial year-end, toeach holder of its securities ("Securityholders"),comparative financial statements in the prescribed formpursuant to the Act.

(d) The Manager proposes to send to Securityholderswho hold securities of the Funds in client name (the "DirectSecurityholders") a notice advising them that theywill not receive the annual financial statements of theFunds for the year then ended unless they request same andproviding them with a request form to send back, by faxor prepaid mail, if they wish to receive the annual financialstatements or interim financial statements. The notice willadvise the Direct Securityholders that the annual financialstatements of the Funds may be found on the websites referredto in clause (e) and downloaded. The Manager will send suchfinancial statements to any Direct Securityholder who requeststhem in response to such notice or who subsequently requeststhem by use of a toll-free number, fax or email.

(e) Securityholders will be able to accessannual financial statements of the Funds either on the SEDARwebsite or on the Manager's website at www.cifunds.com.

(f) There would be substantial cost savingsif the Funds are not required to print and mail annual financialstatements to those Direct Securityholders who do not wantthem.

(g) The Canadian Securities Administratorshave published for comment proposed National Instrument81-106 which, among other things, would permit mutual fundsnot to deliver annual financial statements to those of itssecurityholders who do not request them, if the Funds provideeach securityholder with a request form under which thesecurityholder may request, at no cost to each securityholder,to receive the mutual fund's annual financial statementsfor that financial year.

(h) Proposed National Instrument 81-106would also require a mutual fund to have a toll-free telephonenumber for, or accept collect calls from, persons or companiesthat want to receive a copy of, among other things, theannual financial statements of the mutual fund.

AND UPON the Commission being satisfiedto do so would not be prejudicial to the public interest andthat in the circumstances there is adequate justification forso doing;

AND UPON the Commission is satisfiedthat making the Order will not adversely affect the rule-makingprocess with respect to proposed National Instrument 81-106:

IT IS ORDERED pursuant to clause 80(b)(iii)of the Act:

(i) the Funds; and

(ii) mutual funds created subsequent tothe date hereof that are offered pursuant to either statutoryor discretionary exemptive relief and managed by the Manager,

shall not be required to deliver their comparativeannual financial statements for the year ending December 31,2002 to their Direct Securityholders other than those DirectSecurityholders who have requested to receive them providedthat:

(a) the Manager shall file on Sedar, underthe annual financial statements category, confirmation ofmailing of the request forms that have been sent to theDirect Securityholders as described in clause (d) of therepresentations within 90 days of mailing the request forms;

(b) the Manager shall file on Sedar, underthe annual financial statements category, information regardingthe number and percentage of requests for annual financialstatements made by the return of the request forms, on aprovince-by-province basis within 30 days after the endof each quarterly period beginning from the time of mailingthe request forms and ending 12 months from the time ofmailing;

(c) the Manager shall record the numberand a summary of complaints received from Direct Securityholdersabout not receiving the annual financial statements andshall file on Sedar, under the annual financial statementscategory, this information within 30 days after the endof each quarterly period beginning from the time of mailingthe request forms and ending 12 months from the time ofmailing;

(d) the Manager shall, if possible, measurethe number of "hits" on the annual financial statementsof the Funds on the www.cifunds.com website and shall fileon Sedar, under the annual financial statements category,this information within 30 days after the end of each quarterlyperiod beginning from the time of mailing the request formsand ending 12 months from the time of mailing; and

(e) the Manager shall file on Sedar, underthe annual financial statements category, estimates of thecost savings resulting from the granting of this Decisionwithin 90 days of mailing the request forms.

March 21, 2003.

"Robert L. Shirriff"                    "DerekBrown"

SCHEDULE "A"

THE FUNDS