80 FR 19380 - Van Eck Associates Corporation, et al.; Notice of Application

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 69 (April 10, 2015)

Page Range		19380-19381
FR Document		2015-08258
Federal Register, Volume 80 Issue 69 (Friday, April 10, 2015)
[Federal Register Volume 80, Number 69 (Friday, April 10, 2015)]
[Notices]
[Pages 19380-19381]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-08258]


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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 31547; 812-14400]


Van Eck Associates Corporation, et al.; Notice of Application

April 6, 2015.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application under section 6(c) of the Investment 
Company Act of 1940 (``Act'') for an exemption from rule 12d1-2(a) 
under the Act.

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    Summary of Application: Applicants request an order to permit open-
end management investment companies relying on rule 12d1-2 under the 
Act to invest in certain financial instruments.
    Applicants: Van Eck Associates Corporation (the ``VEAC''), Van Eck 
Securities Corporation (``VESC''), Market Vectors ETF Trust (``MV 
Trust''), Van Eck VIP Trust (``VIP Trust'') and Van Eck Funds (``VE 
Funds'' and, together with MV Trust and VIP Trust, the ``Trusts'').
    Filing Date: The application was filed on December 18, 2014.
    Hearing or Notification of Hearing: An order granting the 
application will be issued unless the Commission orders a hearing. 
Interested persons may request a hearing by writing to the Commission's 
Secretary and serving applicants with a copy of the request, personally 
or by mail. Hearing requests should be received by the Commission by 
5:30 p.m. on May 1, 2015, and should be accompanied by proof of service 
on applicants, in the form of an affidavit or, for lawyers, a 
certificate of service. Pursuant to rule 0-5 under the Act, hearing 
requests should state the nature of the writer's interest, any facts 
bearing upon the desirability of a hearing on the matter, the reason 
for the request, and the issues contested. Persons who wish to be 
notified of a hearing may request notification by writing to the 
Commission's Secretary.

ADDRESSES: Secretary, Securities and Exchange Commission, 100 F Street 
NE., Washington, DC 20549-1090; Applicants: Johnathan R. Simon, Van Eck 
Associates Corporation, 335 Madison Avenue, New York, NY 10017.

FOR FURTHER INFORMATION CONTACT: Emerson S. Davis, Senior Counsel, at 
(202) 551-6868, or Daniele Marchesani, Branch Chief, at (202) 551-6821 
(Division of Investment Management, Chief Counsel's Office).

SUPPLEMENTARY INFORMATION: The following is a summary of the 
application. The complete application may be obtained via the 
Commission's Web site by searching for the file number, or for an 
applicant using the Company name box, at http://www.sec.gov/search/search.htm or by calling (202) 551-8090.

Applicants' Representations

    1. Van Eck Funds is organized as a Massachusetts business trust and 
is registered under the Act as an open-end management investment 
company. Van Eck Funds is a trust which currently consists of eight 
Funds (as defined below), each with its own investment objective and 
policies. VIP Trust is a Massachusetts business trust and is registered 
under the Act as an open-end management investment company. VIP Trust 
currently consists of six Funds, each with its own investment objective 
and policies. MV Trust is a Delaware statutory trust and is registered 
under the Act as an open-end management investment company. MV Trust 
currently consists of 60 Funds, each with its own investment objective 
and policies.
    2. VEAC is registered as an investment adviser under the Investment 
Advisers Act of 1940 (the ``Advisers Act''). VEAC currently is the 
investment adviser to the Trusts. VESC, a broker-dealer registered 
under the Securities Exchange Act of 1934, as amended (``Exchange 
Act''), serves as the principal underwriter for the Trusts.
    3. Applicants request an exemption to the extent necessary to 
permit any existing or future series of the Trusts and any other 
registered open-end management investment company or series thereof 
that: (a) Is advised by VEAC or any investment adviser controlling, 
controlled by, or under common control with VEAC (any such adviser or 
VEAC, the ``Adviser''); \1\ (b) is in the same group of investment 
companies as defined in section 12(d)(1)(G) of the Act as the Trusts; 
(c) invests in other registered open-end

[[Page 19381]]

management investment companies (``Underlying Funds'') in reliance on 
section 12(d)(1)(G) of the Act; and (d) also is eligible to invest in 
securities (as defined in section 2(a)(36) of the Act) in reliance on 
rule 12d1-2 under the Act (each a ``Fund of Funds''), and together with 
the Underlying Funds, the ``Funds''), also to invest, to the extent 
consistent with its investment objectives, policies, strategies and 
limitations, in financial instruments that may not be securities within 
the meaning of section 2(a)(36) of the Act (``Other Investments'').\2\ 
Applicants also request that the order exempt any entity controlling, 
controlled by or under common control with VESC, that now or in the 
future acts as principal underwriter with respect to the transactions 
described in the application.
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    \1\ Each Adviser will be registered as an investment adviser 
under the Advisers Act.
    \2\ Every existing entity that currently intends to rely on the 
requested order is named as an applicant. Any entity that relies on 
the order in the future will do so only in accordance with the terms 
and condition in the application.
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    4. Consistent with its fiduciary obligations under the Act, each 
Fund of Funds' board of trustees will review the advisory fees charged 
by the Fund of Funds' Adviser to ensure that they are based on services 
provided that are in addition to, rather than duplicative of, services 
provided pursuant to the advisory agreement of any investment company 
in which the Fund of Funds may invest.

Applicants' Legal Analysis

    1. Section 12(d)(1)(A) of the Act provides that no registered 
investment company (``acquiring company'') may acquire securities of 
another investment company (``acquired company'') if such securities 
represent more than 3% of the acquired company's outstanding voting 
stock or more than 5% of the acquiring company's total assets, or if 
such securities, together with the securities of other investment 
companies, represent more than 10% of the acquiring company's total 
assets. Section 12(d)(1)(B) of the Act provides that no registered 
open-end investment company may sell its securities to another 
investment company if the sale will cause the acquiring company to own 
more than 3% of the acquired company's voting stock, or cause more than 
10% of the acquired company's voting stock to be owned by investment 
companies and companies controlled by them.
    2. Section 12(d)(1)(G) of the Act provides, in part, that section 
12(d)(1) will not apply to securities of an acquired company purchased 
by an acquiring company if: (i) The acquired company and acquiring 
company are part of the same group of investment companies; (ii) the 
acquiring company holds only securities of acquired companies that are 
part of the same group of investment companies, Government securities, 
and short-term paper; (iii) the aggregate sales loads and distribution-
related fees of the acquiring company and the acquired company are not 
excessive under rules adopted pursuant to section 22(b) or section 
22(c) of the Act by a securities association registered under section 
15A of the Exchange Act or by the Commission; and (iv) the acquired 
company has a policy that prohibits it from acquiring securities of 
registered open-end investment companies or registered unit investment 
trusts in reliance on section 12(d)(1)(F) or (G) of the Act.
    3. Rule 12d1-2 under the Act permits a registered open-end 
investment company or a registered unit investment trust that relies on 
section 12(d)(1)(G) of the Act to acquire, in addition to securities 
issued by another registered investment company in the same group of 
investment companies, Government securities, and short-term paper: (i) 
Securities issued by an investment company that is not in the same 
group of investment companies, when the acquisition is in reliance on 
section 12(d)(1)(A) or 12(d)(1)(F) of the Act; (ii) securities (other 
than securities issued by an investment company); and (iii) securities 
issued by a money market fund, when the investment is in reliance on 
rule 12d1-1 under the Act. For the purposes of rule 12d1-2, 
``securities'' means any security as defined in section 2(a)(36) of the 
Act.
    4. Section 6(c) of the Act provides that the Commission may exempt 
any person, security, or transaction from any provision of the Act, or 
from any rule under the Act, if such exemption is necessary or 
appropriate in the public interest and consistent with the protection 
of investors and the purposes fairly intended by the policies and 
provisions of the Act. Applicants submit that their request for relief 
meets this standard.
    5. Applicants request an order under section 6(c) of the Act for an 
exemption from rule 12d1-2(a) to allow the Funds of Funds to invest in 
Other Investments while investing in Underlying Funds. Applicants state 
that the Funds of Funds will comply with rule 12d1-2 under the Act, but 
for the fact that the Funds of Funds may invest a portion of their 
assets in Other Investments. Applicants assert that permitting the 
Funds of Funds to invest in Other Investments as described in the 
application would not raise any of the concerns that the requirements 
of section 12(d)(1) were designed to address.

Applicants' Condition

    Applicants agree that any order granting the requested relief will 
be subject to the following condition: Applicants will comply with all 
provisions of rule 12d1-2 under the Act, except for paragraph (a)(2) to 
the extent that it restricts any Fund of Funds from investing in Other 
Investments as described in the application.

    For the Commission, by the Division of Investment Management, 
under delegated authority.
Brent J. Fields,
Secretary.
[FR Doc. 2015-08258 Filed 4-9-15; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Notices 19381

management investment companies company and acquiring company are application would not raise any of the
(‘‘Underlying Funds’’) in reliance on part of the same group of investment concerns that the requirements of
section 12(d)(1)(G) of the Act; and (d) companies; (ii) the acquiring company section 12(d)(1) were designed to
also is eligible to invest in securities (as holds only securities of acquired address.
defined in section 2(a)(36) of the Act) in companies that are part of the same
Applicants’ Condition
reliance on rule 12d1–2 under the Act group of investment companies,
(each a ‘‘Fund of Funds’’), and together Government securities, and short-term Applicants agree that any order
with the Underlying Funds, the paper; (iii) the aggregate sales loads and granting the requested relief will be
‘‘Funds’’), also to invest, to the extent distribution-related fees of the acquiring subject to the following condition:
consistent with its investment company and the acquired company are Applicants will comply with all
objectives, policies, strategies and not excessive under rules adopted provisions of rule 12d1–2 under the Act,
limitations, in financial instruments that pursuant to section 22(b) or section except for paragraph (a)(2) to the extent
may not be securities within the 22(c) of the Act by a securities that it restricts any Fund of Funds from
meaning of section 2(a)(36) of the Act association registered under section 15A investing in Other Investments as
(‘‘Other Investments’’).2 Applicants also of the Exchange Act or by the described in the application.
request that the order exempt any entity Commission; and (iv) the acquired For the Commission, by the Division of
controlling, controlled by or under company has a policy that prohibits it Investment Management, under delegated
common control with VESC, that now or from acquiring securities of registered authority.
in the future acts as principal open-end investment companies or Brent J. Fields,
underwriter with respect to the registered unit investment trusts in Secretary.
transactions described in the reliance on section 12(d)(1)(F) or (G) of [FR Doc. 2015–08258 Filed 4–9–15; 8:45 am]
application. the Act. BILLING CODE 8011–01–P
4. Consistent with its fiduciary 3. Rule 12d1–2 under the Act permits
obligations under the Act, each Fund of a registered open-end investment
Funds’ board of trustees will review the company or a registered unit investment SECURITIES AND EXCHANGE
advisory fees charged by the Fund of trust that relies on section 12(d)(1)(G) of COMMISSION
Funds’ Adviser to ensure that they are the Act to acquire, in addition to
based on services provided that are in securities issued by another registered [Release No. 34–74656; File No. SR–BATS–
addition to, rather than duplicative of, investment company in the same group 2015–25]
services provided pursuant to the of investment companies, Government
Self-Regulatory Organizations; BATS
advisory agreement of any investment securities, and short-term paper: (i)
Exchange, Inc.; Notice of Filing and
company in which the Fund of Funds Securities issued by an investment
Immediate Effectiveness of a Proposed
may invest. company that is not in the same group
Rule Change To Amend Rule 4.3,
of investment companies, when the
Applicants’ Legal Analysis Record of Written Complaints
acquisition is in reliance on section
1. Section 12(d)(1)(A) of the Act 12(d)(1)(A) or 12(d)(1)(F) of the Act; (ii) April 6, 2015.
provides that no registered investment securities (other than securities issued Pursuant to Section 19(b)(1) of the
company (‘‘acquiring company’’) may by an investment company); and (iii) Securities Exchange Act of 1934 (the
acquire securities of another investment securities issued by a money market ‘‘Act’’),1 and Rule 19b–4 thereunder,2
company (‘‘acquired company’’) if such fund, when the investment is in reliance notice is hereby given that on March 26,
securities represent more than 3% of the on rule 12d1–1 under the Act. For the 2015, BATS Exchange, Inc. (the
acquired company’s outstanding voting purposes of rule 12d1–2, ‘‘securities’’ ‘‘Exchange’’ or ‘‘BATS’’) filed with the
stock or more than 5% of the acquiring means any security as defined in section Securities and Exchange Commission
company’s total assets, or if such 2(a)(36) of the Act. (‘‘Commission’’) the proposed rule
securities, together with the securities of 4. Section 6(c) of the Act provides that change as described in Items I and II
other investment companies, represent the Commission may exempt any below, which Items have been prepared
more than 10% of the acquiring person, security, or transaction from any by the Exchange. The Exchange has
company’s total assets. Section provision of the Act, or from any rule designated this proposal as a ‘‘non-
12(d)(1)(B) of the Act provides that no under the Act, if such exemption is controversial’’ proposed rule change
registered open-end investment necessary or appropriate in the public pursuant to Section 19(b)(3)(A) of the
company may sell its securities to interest and consistent with the Act 3 and Rule 19b–4(f)(6)(iii)
another investment company if the sale protection of investors and the purposes thereunder,4 which renders it effective
will cause the acquiring company to fairly intended by the policies and upon filing with the Commission. The
own more than 3% of the acquired provisions of the Act. Applicants submit Commission is publishing this notice to
company’s voting stock, or cause more that their request for relief meets this solicit comments on the proposed rule
than 10% of the acquired company’s standard. change from interested persons.
voting stock to be owned by investment 5. Applicants request an order under
companies and companies controlled by section 6(c) of the Act for an exemption I. Self-Regulatory Organization’s
them. from rule 12d1–2(a) to allow the Funds Statement of the Terms of Substance of
2. Section 12(d)(1)(G) of the Act of Funds to invest in Other Investments the Proposed Rule Change
provides, in part, that section 12(d)(1) while investing in Underlying Funds. The Exchange proposes to amend
will not apply to securities of an
mstockstill on DSK4VPTVN1PROD with NOTICES

Applicants state that the Funds of Rule 4.3, Record of Written Complaints.
acquired company purchased by an Funds will comply with rule 12d1–2 The text of the proposed rule change is
acquiring company if: (i) The acquired under the Act, but for the fact that the below. Proposed new language is in
Funds of Funds may invest a portion of
2 Every existing entity that currently intends to
their assets in Other Investments. 1 15 U.S.C. 78s(b)(1).
rely on the requested order is named as an
applicant. Any entity that relies on the order in the
Applicants assert that permitting the 2 17 CFR 240.19b–4.
future will do so only in accordance with the terms Funds of Funds to invest in Other 3 15 U.S.C. 78s(b)(3)(A).

and condition in the application. Investments as described in the 4 17 CFR 240.19b–4(f)(6)(iii).

VerDate Sep<11>2014 20:09 Apr 09, 2015 Jkt 235001 PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 E:\FR\FM\10APN1.SGM 10APN1
Document Created: 2018-02-21 10:09:00
Document Modified: 2018-02-21 10:09:00
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice of an application under section 6(c) of the Investment Company Act of 1940 (``Act'') for an exemption from rule 12d1-2(a) under the Act.
Dates		The application was filed on December 18, 2014.
Contact		Emerson S. Davis, Senior Counsel, at (202) 551-6868, or Daniele Marchesani, Branch Chief, at (202) 551-6821 (Division of Investment Management, Chief Counsel's Office).
FR Citation		80 FR 19380