1999 Ruling 9923043 - MUTUAL FUND TRUST USING DERIVATIVES -- summary under Paragraph 206(1)(h)

A newly -established mutual fund invests in Canadian money market securities and enters into Canadian-dollar cash settled forward contracts with banks based on the net asset value at the time of settlement of a unit of existing mutual fund trusts that are invested in foreign property. RC rules that the forward contracts will not be foreign property and that their cost amount will not include the settlement price.