81 FR 52493 - American Independence Funds Trust, et al.; Notice of Application

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 152 (August 8, 2016)

Page Range		52493-52494
FR Document		2016-18754

Federal Register, Volume 81 Issue 152 (Monday, August 8, 2016)

[Federal Register Volume 81, Number 152 (Monday, August 8, 2016)]
[Notices]
[Pages 52493-52494]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-18754]


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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 32206; 812-14666]


American Independence Funds Trust, et al.; Notice of Application

August 3, 2016.
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 section 15(a) of 
the Act and rule 18f-2 under the Act, as well as from certain 
disclosure requirements in rule 20a-1 under the Act, Item 19(a)(3) of 
Form N-1A, Items 22(c)(1)(ii), 22(c)(1)(iii), 22(c)(8) and 22(c)(9) of 
Schedule 14A under the Securities Exchange Act of 1934, and Sections 6-
07(2)(a), (b), and (c) of Regulation S-X (``Disclosure Requirements''). 
The requested exemption would permit an investment adviser to hire and 
replace certain sub-advisers without shareholder approval and grant 
relief from the Disclosure Requirements as they relate to fees paid to 
the sub-advisers.

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Applicants: American Independence Funds Trust and Rx Funds Trust (each, 
a ``Trust'' and collectively, the ``Trusts''), each a Delaware 
statutory trust registered under the Act as an open-end management 
investment company with multiple series, and RiskX Investments, LLC, a 
Delaware limited liability company registered as an investment adviser 
under the Investment Advisers Act of 1940 (``RiskX Investments'' or the 
``Adviser,'' and, collectively with the Trusts, the ``Applicants'').

Filing Dates: The application was filed June 30, 2016, and amended 
August 2, 2016 and August 2, 2016.

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 August 24, 2016, and should be accompanied by proof of service 
on the 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, U.S. Securities and Exchange Commission, 100 F 
Street NE., Washington, DC 20549-1090. Applicants: 1345 Avenue of the 
Americas, Second Floor, New York, NY 10105.

FOR FURTHER INFORMATION CONTACT: Steven I. Amchan, Senior Counsel, or 
David J. Marcinkus, 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 an applicant 
using the Company name box, at http://www.sec.gov/search/search.htm or 
by calling (202) 551-8090.

Summary of the Application

    1. The Adviser will serve as the investment adviser to the Funds 
pursuant to an investment advisory agreement with each Trust (the 
``Advisory Agreement'').\1\ The Adviser

[[Page 52494]]

will provide the Funds with continuous and comprehensive investment 
management services subject to the supervision of, and policies 
established by, each Fund's board of trustees (``Board''). The Advisory 
Agreement permits the Adviser, subject to the approval of the Board, to 
delegate to one or more sub-advisers (each, a ``Sub-Adviser'' and 
collectively, the ``Sub-Advisers'') the responsibility to provide the 
day-to-day portfolio investment management of each Fund, subject to the 
supervision and direction of the Adviser. The primary responsibility 
for managing the Funds will remain vested in the Adviser. The Adviser 
will hire, evaluate, allocate assets to and oversee the Sub-Advisers, 
including determining whether a Sub-Adviser should be terminated, at 
all times subject to the authority of the Board.
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    \1\ Applicants request relief with respect to any existing and 
any future series of each Trust and any other registered open-end 
management company or series thereof that: (a) Is advised by RiskX 
Investments or its successor or by a person controlling, controlled 
by, or under common control with RiskX Investments or its successor 
(each, also an ``Adviser''); (b) uses the manager of managers 
structure described in the application; and (c) complies with the 
terms and conditions of the application (any such series, a ``Fund'' 
and collectively, the ``Funds''). For purposes of the requested 
order, ``successor'' is limited to an entity that results from a 
reorganization into another jurisdiction or a change in the type of 
business organization.
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    2. Applicants request an exemption to permit the Adviser, subject 
to Board approval, to hire certain Sub-Advisers pursuant to Sub-
Advisory Agreements and materially amend existing Sub-Advisory 
Agreements without obtaining the shareholder approval required under 
section 15(a) of the Act and rule 18f-2 under the Act.\2\ Applicants 
also seek an exemption from the Disclosure Requirements to permit a 
Fund to disclose (as both a dollar amount and a percentage of the 
Fund's net assets): (a) The aggregate fees paid to the Adviser and any 
Affiliated Sub-Adviser; and (b) the aggregate fees paid to Sub-Advisers 
other than Affiliated Sub-Advisers (collectively, ``Aggregate Fee 
Disclosure''). For any Fund that employs an Affiliated Sub-Adviser, the 
Fund will provide separate disclosure of any fees paid to the 
Affiliated Sub-Adviser.
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    \2\ The requested relief will not extend to any Sub-Adviser, 
other than a ``Wholly-Owned Sub-Adviser'' (as defined in the 
application), that is an affiliated person, as defined in section 
2(a)(3) of the Act, of a Fund or the Adviser, other than by reason 
of serving as a sub-adviser to one or more of the Funds 
(``Affiliated Sub-Adviser'').
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    3. Applicants agree that any order granting the requested relief 
will be subject to the terms and conditions stated in the Application. 
Such terms and conditions provide for, among other safeguards, 
appropriate disclosure to Fund shareholders and notification about sub-
advisory changes and enhanced Board oversight to protect the interests 
of the Funds' shareholders.
    4. Section 6(c) of the Act provides that the Commission may exempt 
any person, security, or transaction or any class or classes of 
persons, securities, or transactions from any provisions of the Act, or 
any rule thereunder, if such relief is necessary or appropriate in the 
public interest and consistent with the protection of investors and 
purposes fairly intended by the policy and provisions of the Act. 
Applicants believe that the requested relief meets this standard 
because, as further explained in the Application, the Advisory 
Agreements will remain subject to shareholder approval, while the role 
of the Sub-Advisers is substantially similar to that of individual 
portfolio managers, so that requiring shareholder approval of Sub-
Advisory Agreements would impose unnecessary delays and expenses on the 
Funds. Applicants believe that the requested relief from the Disclosure 
Requirements meets this standard because it will improve the Adviser's 
ability to negotiate fees paid to the Sub-Advisers that are more 
advantageous for the Funds.

For the Commission, by the Division of Investment Management, under 
delegated authority.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-18754 Filed 8-5-16; 8:45 am]
 BILLING CODE 8011-01-P

52494 Federal Register / Vol. 81, No. 152 / Monday, August 8, 2016 / Notices

will provide the Funds with continuous Fund shareholders and notification by the Exchange. The Commission is
and comprehensive investment about sub-advisory changes and publishing this notice to solicit
management services subject to the enhanced Board oversight to protect the comments on the proposed rule change
supervision of, and policies established interests of the Funds’ shareholders. from interested persons.
by, each Fund’s board of trustees 4. Section 6(c) of the Act provides that
the Commission may exempt any I. Self-Regulatory Organization’s
(‘‘Board’’). The Advisory Agreement
permits the Adviser, subject to the person, security, or transaction or any Statement of the Terms of Substance of
approval of the Board, to delegate to one class or classes of persons, securities, or the Proposed Rule Change
or more sub-advisers (each, a ‘‘Sub- transactions from any provisions of the The Exchange is proposing to extend
Adviser’’ and collectively, the ‘‘Sub- Act, or any rule thereunder, if such the pilot period for the Exchange’s
Advisers’’) the responsibility to provide relief is necessary or appropriate in the Supplemental Competitive Liquidity
the day-to-day portfolio investment public interest and consistent with the Provider Program (the ‘‘Program’’),
management of each Fund, subject to protection of investors and purposes which is currently set to expire on July
the supervision and direction of the fairly intended by the policy and 28, 2016, for three months, to expire on
Adviser. The primary responsibility for provisions of the Act. Applicants October 28, 2016.
managing the Funds will remain vested believe that the requested relief meets
The text of the proposed rule change
in the Adviser. The Adviser will hire, this standard because, as further
is available at the Exchange’s Web site
evaluate, allocate assets to and oversee explained in the Application, the
at www.batstrading.com, at the
the Sub-Advisers, including Advisory Agreements will remain
principal office of the Exchange, and at
determining whether a Sub-Adviser subject to shareholder approval, while
the Commission’s Public Reference
should be terminated, at all times the role of the Sub-Advisers is
Room.
subject to the authority of the Board. substantially similar to that of
2. Applicants request an exemption to individual portfolio managers, so that II. Self-Regulatory Organization’s
permit the Adviser, subject to Board requiring shareholder approval of Sub- Statement of the Purpose of, and
approval, to hire certain Sub-Advisers Advisory Agreements would impose Statutory Basis for, the Proposed Rule
pursuant to Sub-Advisory Agreements unnecessary delays and expenses on the Change
and materially amend existing Sub- Funds. Applicants believe that the
Advisory Agreements without obtaining requested relief from the Disclosure In its filing with the Commission, the
the shareholder approval required under Requirements meets this standard Exchange included statements
section 15(a) of the Act and rule 18f–2 because it will improve the Adviser’s concerning the purpose of and basis for
under the Act.2 Applicants also seek an ability to negotiate fees paid to the Sub- the proposed rule change and discussed
exemption from the Disclosure Advisers that are more advantageous for any comments it received on the
Requirements to permit a Fund to the Funds. proposed rule change. The text of these
disclose (as both a dollar amount and a statements may be examined at the
For the Commission, by the Division of
percentage of the Fund’s net assets): (a) Investment Management, under delegated
places specified in Item IV below. The
The aggregate fees paid to the Adviser authority. Exchange has prepared summaries, set
and any Affiliated Sub-Adviser; and (b) Robert W. Errett,
forth in Sections A, B, and C below, of
the aggregate fees paid to Sub-Advisers the most significant parts of such
Deputy Secretary.
other than Affiliated Sub-Advisers statements.
[FR Doc. 2016–18754 Filed 8–5–16; 8:45 am]
(collectively, ‘‘Aggregate Fee BILLING CODE 8011–01–P A. Self-Regulatory Organization’s
Disclosure’’). For any Fund that Statement of the Purpose of, and
employs an Affiliated Sub-Adviser, the Statutory Basis for, the Proposed Rule
Fund will provide separate disclosure of SECURITIES AND EXCHANGE Change
any fees paid to the Affiliated Sub- COMMISSION
Adviser. 1. Purpose
3. Applicants agree that any order [Release No. 34–78454; File No. SR–
BatsBZX–2016–46] Background
granting the requested relief will be
subject to the terms and conditions On August 30, 2011, the Exchange
Self-Regulatory Organizations; Bats received approval of rules applicable to
stated in the Application. Such terms
BZX Exchange, Inc.; Notice of Filing the qualification, listing and delisting of
and conditions provide for, among other
and Immediate Effectiveness of a securities of issuers on the Exchange.3
safeguards, appropriate disclosure to
Proposed Rule Change To Extend the More recently, the Exchange received
Pilot Period for the Exchange’s approval to operate a pilot program that
other registered open-end management company or
series thereof that: (a) Is advised by RiskX Supplemental Competitive Liquidity
is designed to incentivize certain Market
Investments or its successor or by a person Provider Program
controlling, controlled by, or under common
Makers 4 registered with the Exchange
control with RiskX Investments or its successor August 2, 2016. as ETP CLPs, as defined in
(each, also an ‘‘Adviser’’); (b) uses the manager of Pursuant to Section 19(b)(1) of the Interpretation and Policy .03 to Rule
managers structure described in the application; 11.8, to enhance liquidity on the
and (c) complies with the terms and conditions of
Securities Exchange Act of 1934 (the
the application (any such series, a ‘‘Fund’’ and ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange in certain ETPs 5 listed on the
collectively, the ‘‘Funds’’). For purposes of the notice is hereby given that on July 28, Exchange and thereby qualify to receive
requested order, ‘‘successor’’ is limited to an entity 2016, Bats BZX Exchange, Inc. part of a daily rebate as part of the
that results from a reorganization into another
mstockstill on DSK3G9T082PROD with NOTICES

jurisdiction or a change in the type of business
(‘‘Exchange’’ or ‘‘BZX’’) filed with the
organization. Securities and Exchange Commission 3 See Securities Exchange Act Release No. 65225

2 The requested relief will not extend to any Sub- (‘‘Commission’’) the proposed rule (August 30, 2011), 76 FR 55148 (September 6, 2011)
(SR–BATS–2011–018).
Adviser, other than a ‘‘Wholly-Owned Sub- change as described in Items I and II 4 As defined in BZX Rules, the term ‘‘Market
Adviser’’ (as defined in the application), that is an below, which Items have been prepared
affiliated person, as defined in section 2(a)(3) of the Maker’’ means a Member that acts a as a market
Act, of a Fund or the Adviser, other than by reason maker pursuant to Chapter XI of BZX Rules.
1 15 U.S.C. 78s(b)(1). 5 ETP is defined in Interpretation and Policy
of serving as a sub-adviser to one or more of the
Funds (‘‘Affiliated Sub-Adviser’’). 2 17 CFR 240.19b–4. .03(b)(4) to Rule 11.8.

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Document Created: 2016-08-06 03:08:22
Document Modified: 2016-08-06 03:08:22

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 section 15(a) of the Act and rule 18f-2 under the Act, as well as from certain disclosure requirements in rule 20a-1 under the Act, Item 19(a)(3) of Form N-1A, Items 22(c)(1)(ii), 22(c)(1)(iii), 22(c)(8) and 22(c)(9) of Schedule 14A under the Securities Exchange Act of 1934, and Sections 6- 07(2)(a), (b), and (c) of Regulation S-X (``Disclosure Requirements''). The requested exemption would permit an investment adviser to hire and replace certain sub-advisers without shareholder approval and grant relief from the Disclosure Requirements as they relate to fees paid to the sub-advisers.
Dates		The application was filed June 30, 2016, and amended August 2, 2016 and August 2, 2016.
Contact		Steven I. Amchan, Senior Counsel, or David J. Marcinkus, Branch Chief, at (202) 551-6821 (Division of Investment Management, Chief Counsel's Office).
FR Citation		81 FR 52493