Desjardins Global Asset Management Inc. and Desjardins ALT Long/Short Equity Market Neutral ETF

Decision

Headnote

National Policy 11-203 Process for Exemptive Relief Applications in Multiple Jurisdictions -- relief granted to mutual funds for an extension of the lapse date for their prospectus.

Policy Statement 11-203 Process for Exemptive Relief Applications in Multiple Jurisdiction -- Regulation 11-102 respecting Passport System -- Relief granted under subsection 17.2(7) of Regulation 41-101 respecting General Prospectus Requirements to exchange-traded fund for extension of the lapse date of its prospectus to consolidate the prospectus with other funds.

Applicable Legislative Provisions

Securities Act, R.S.O. 1990, c. S.5, as am., ss. 62(5).

[TRANSLATION]

December 23, 2021

IN THE MATTER OF THE SECURITIES LEGISLATION OF QUÉBEC AND ONTARIO (the Jurisdictions) AND IN THE MATTER OF THE PROCESS FOR EXEMPTIVE RELIEF APPLICATIONS IN MULTIPLES JURISDICTIONS AND IN THE MATTER OF DESJARDINS GLOBAL ASSET MANAGEMENT INC. (the Filer) AND IN THE MATTER OF DESJARDINS ALT LONG/SHORT EQUITY MARKET NEUTRAL ETF (the Desjardins ETF)

DECISION

Background

The securities regulatory authority or regulator in each of the Jurisdictions (each, a Decision Maker) has received an application from the Filer on behalf of the Desjardins ETF for a decision under the securities legislation of the Jurisdictions (the Legislation) that the time limits for the renewal of the long form prospectus of the Desjardins ETF dated January 11, 2021 (the Prospectus) be extended to those time limits that would apply if the lapse date of the Prospectus was March 15, 2022 (the Exemption Sought).

Under the Process for Exemptive Relief Applications in Multiple Jurisdictions (for a dual application):

a) the Autorité des marchés financiers is the principal regulator for this application;

b) the Filer has provided notice that subsection 4.7(1) of Regulation 11-102 respecting Passport System (c. V-1.1, r.1) (Regulation 11-102) is intended to be relied upon in British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Yukon, Nunavut and Northwest Territories (collectively with the Jurisdictions, the Jurisdictions of Canada); and

c) the decision is the decision of the principal regulator and evidences the decision of the securities regulatory authority or regulator in Ontario.

Interpretation

Terms defined in Regulation 14-101 respecting Definitions (c. V-1.1, r. 3), Regulation 41-101 respecting General Prospectus Requirements (c. V-1.1, r. 14) (Regulation 41-101) and Regulation 11-102 have the same meaning if used in this decision, unless otherwise defined.

Representations

This decision is based on the following facts represented by the Filer:

The Filer

1. The Filer is a corporation established under the laws of the Province of Québec, with its head office located in Montréal, Québec.

2. The Filer is registered as a portfolio manager in each of the Jurisdictions of Canada, as a commodity trading manager in Ontario, derivatives portfolio manager in Québec, exempt-market dealer in each of the Jurisdictions of Canada, as an investment fund manager in Québec, Ontario, Alberta, Manitoba, Nova Scotia, and Newfoundland and Labrador and as an advisor in Manitoba.

3. The Filer is the investment fund manager of the Desjardins ETF and of seven other exchange-traded funds (ETFs) identified in Appendix A (the Other Funds, and together with the Desjardins ETF, the Funds) that currently distribute their securities to the public under a long form prospectus that has a lapse date of March 15, 2022 (the Other Funds Prospectus).

4. The Filer is not in default of securities legislation in any of the Jurisdictions of Canada.

The Funds

5. The Funds are ETFs established under the laws of Québec, and are reporting issuers or the equivalent as defined in the securities legislation of any Jurisdictions of Canada.

6. The Funds are not in default of securities legislation in any of the Jurisdictions of Canada.

7. The Desjardins ETF currently distributes securities in the Jurisdictions of Canada under the Prospectus and its securities are traded on the Toronto Stock Exchange.

8. Pursuant to subsection 17.2(2) of Regulation 41-101 and subsection 62(1) of the Securities Act (Ontario) (R.S.O. 1990, c.S.5), the lapse date of the Prospectus is January 11, 2022 (the Current Lapse Date). In accordance with applicable securities legislation, the distribution of securities of the Fund would have to cease on the Lapse Date unless: (i) a pro forma prospectus is filed at least 30 days prior to the Current Lapse Date; (ii) the final prospectus is filed no later than 10 days after the Current Lapse Date; and (iii) a receipt for the final prospectus is obtained within 20 days of the Current Lapse Date.

The reasons for the Exemption Sought

9. The Filer wishes to combine the Prospectus with the Other Funds Prospectus in order to reduce renewal and related costs of the Funds. Offering the Funds under one prospectus would facilitate the distribution of the Funds in the Jurisdictions of Canada under the same prospectus and enable the Filer to streamline disclosure across the Filer's fund platform. As the Desjardins ETF and the Other Funds are all managed by the Filer, offering them under the same prospectus will allow investors to more easily compare their features.

10. It would be preferable to incur the costs and expenses associated with preparing only one renewal prospectus rather than two separate renewal prospectuses given how close in proximity the lapse dates are to one another.

11. Given the current Lapse Date, an extension of the Lapse Date to March 15, 2022 is minimal and is not disadvantageous to the Desjardins ETF's investors.

12. There have been no material changes in the affairs of the Desjardins ETF since the date of the Prospectus. Accordingly, the Prospectus and ETF Facts of the Desjardins ETF continue to provide accurate information.

13. Given the disclosure obligations of the Filer and the Desjardins ETF, should any changes occur, the Prospectus and ETF facts document of the Desjardins ETF will be amended accordingly.

14. New investors in the Desjardins ETF will receive the most recently filed ETF facts document. The Prospectus will still be available upon request.

15. The Filer submits that the Exemption Sought will not affect the reliability and accuracy of the information contained in the Prospectus and will therefore not be prejudicial to the public interest.

Decision

Each of the Decision Makers is satisfied that the decision meets the test set out in the Legislation for the Decision Makers to make the decision.

The decision of the Decision Makers under the Legislation is that the Exemption Sought is granted.

"Frédéric Belleau"

Senior Director, Investment Funds

 

Appendix A

Desjardins Canadian Universe Bond Index ETF

Desjardins Canadian Short Term Bond Index ETF

Desjardins 1-5 year Laddered Canadian Corporate Bond Index ETF

Desjardins 1-5 year Laddered Canadian Government Bond Index ETF

Desjardins Canadian Preferred Share Index ETF

Desjardins RI Emerging Markets -- Low CO2 Index ETF

Desjardins RI Developed ex-USA ex-Canada -- Low CO2 Index ETF