82 FR 22566 - Allianz Funds, et al.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 93 (May 16, 2017)

Page Range		22566-22567
FR Document		2017-09808
Federal Register, Volume 82 Issue 93 (Tuesday, May 16, 2017)
[Federal Register Volume 82, Number 93 (Tuesday, May 16, 2017)]
[Notices]
[Pages 22566-22567]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-09808]


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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 32631; File No. 812-14455]


Allianz Funds, et al.

May 10, 2017.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice.

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    Notice of an application for an order pursuant to: (a) Section 6(c) 
of the Investment Company Act of 1940 (``Act'') granting an exemption 
from sections 18(f) and 21(b) of the Act; (b) section 12(d)(1)(J) of 
the Act granting an exemption from section 12(d)(1) of the Act; (c) 
sections 6(c) and 17(b) of the Act granting an exemption from sections 
17(a)(1), 17(a)(2) and 17(a)(3) of the Act; and (d) section 17(d) of 
the Act and rule 17d-1 under the Act to permit certain joint 
arrangements and transactions. Applicants request an order that would 
permit certain registered open-end management investment companies to 
participate in a joint lending and borrowing facility.
    Applicants: Allianz Funds, Allianz Funds Multi-Strategy Trust, 
AllianzGI Institutional Multi-Series Trust, and Premier Multi-Series 
VIT, registered under the Act as open-end management investment 
companies with one or more series, and Allianz Global Investors U.S. 
LLC (the ``Adviser''), registered as an investment adviser under the 
Investment Advisers Act of 1940.
    Filing Dates: The application was filed on May 5, 2015, and amended 
on April 4, 2016, September 22, 2016, and February 15, 2017. Applicants 
have agreed to file an amendment during the notice period, the 
substance of which is reflected in this notice.
    Hearing or Notification of Hearing: An order granting the requested 
relief 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 June 5, 2017, 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.

[[Page 22567]]


ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F 
Street NE., Washington, DC 20549-1090; Applicants, c/o George B. Raine, 
Esq., Ropes & Gray LLP, 800 Boylston St., Boston, MA 02199.

FOR FURTHER INFORMATION CONTACT: Laura L. Solomon, Senior Counsel, at 
(202) 551-6915 or Nadya Roytblat, Assistant Chief Counsel, at (202) 
551-6823 (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. Applicants request an order that would permit the applicants to 
participate in an interfund lending facility where each Fund could lend 
money directly to and borrow money directly from other Funds to cover 
unanticipated cash shortfalls, such as unanticipated redemptions or 
trade fails.\1\ The Funds will not borrow under the facility for 
leverage purposes and the loans' duration will be no more than 7 
days.\2\
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    \1\ Applicants request that the order apply to the applicants 
and to any existing or future registered open-end management 
investment company or series thereof for which the Adviser or any 
successor thereto or an investment adviser controlling, controlled 
by, or under common control with the Adviser or any successor 
thereto serves as investment adviser (each a ``Fund'' and 
collectively the ``Funds'' and each such investment adviser an 
``Adviser''). For purposes of the requested order, ``successor'' is 
limited to any entity that results from a reorganization into 
another jurisdiction or a change in the type of a business 
organization.
    \2\ Any Fund, however, will be able to call a loan on one 
business day's notice.
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    2. Applicants anticipate that the proposed facility would provide a 
borrowing Fund with a source of liquidity at a rate lower than the bank 
borrowing rate at times when the cash position of the Fund is 
insufficient to meet temporary cash requirements. In addition, Funds 
making short-term cash loans directly to other Funds would earn 
interest at a rate higher than they otherwise could obtain from 
investing their cash in repurchase agreements or certain other short-
term money market instruments. Thus, applicants assert that the 
facility would benefit both borrowing and lending Funds.
    3. Applicants agree that any order granting the requested relief 
will be subject to the terms and conditions stated in the application. 
Among others, an Adviser, through a designated committee, would 
administer the facility as a disinterested fiduciary as part of its 
duties under the investment management agreements with the Funds and 
would receive no additional fee as compensation for its services in 
connection with the administration of the facility. The facility would 
be subject to oversight and certain approvals by the Funds' Board, 
including, among others, approval of the interest rate formula and of 
the method for allocating loans across Funds, as well as review of the 
process in place to evaluate the liquidity implications for the Funds. 
A Fund's aggregate outstanding interfund loans will not exceed 15% of 
its net assets, and the Fund's loans to any one Fund will not exceed 5% 
of the lending Fund's net assets.\3\
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    \3\ Under certain circumstances, a borrowing Fund will be 
required to pledge collateral to secure the loan.
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    4. Applicants assert that the facility does not raise the concerns 
underlying section 12(d)(1) of the Act given that the Funds are part of 
the same group of investment companies and there will be no duplicative 
costs or fees to the Funds.\4\ Applicants also assert that the proposed 
transactions do not raise the concerns underlying sections 17(a)(1), 
17(a)(3), 17(d) and 21(b) of the Act as the Funds would not engage in 
lending transactions that unfairly benefit insiders or are detrimental 
to the Funds. Applicants state that the facility will offer both 
reduced borrowing costs and enhanced returns on loaned funds to all 
participating Funds and each Fund would have an equal opportunity to 
borrow and lend on equal terms based on an interest rate formula that 
is objective and verifiable. With respect to the relief from section 
17(a)(2) of the Act, applicants note that any collateral pledged to 
secure an interfund loan would be subject to the same conditions 
imposed by any other lender to a Fund that imposes conditions on the 
quality of or access to collateral for a borrowing (if the lender is 
another Fund) or the same or better conditions (in any other 
circumstance).\5\
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    \4\ Applicants state that the obligation to repay an interfund 
loan could be deemed to constitute a security for the purposes of 
sections 17(a)(1) and 12(d)(1) of the Act.
    \5\ Applicants state that any pledge of securities to secure an 
interfund loan could constitute a purchase of securities for 
purposes of section 17(a)(2) of the Act.
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    5. Applicants also believe that the limited relief from section 
18(f)(1) of the Act that is necessary to implement the facility 
(because the lending Funds are not banks) is appropriate in light of 
the conditions and safeguards described in the application and because 
the Funds would remain subject to the requirement of section 18(f)(1) 
that all borrowings of a Fund, including combined interfund loans and 
bank borrowings, have at least 300% asset coverage.
    6. Section 6(c) of the Act permits the Commission to exempt any 
persons or transactions from any provision of 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 
policy and provisions of the Act. Section 12(d)(1)(J) 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 provision of section 12(d)(1) if the exemption 
is consistent with the public interest and the protection of investors. 
Section 17(b) of the Act authorizes the Commission to grant an order 
permitting a transaction otherwise prohibited by section 17(a) if it 
finds that (a) the terms of the proposed transaction are fair and 
reasonable and do not involve overreaching on the part of any person 
concerned; (b) the proposed transaction is consistent with the policies 
of each registered investment company involved; and (c) the proposed 
transaction is consistent with the general purposes of the Act. Rule 
17d-1(b) under the Act provides that in passing upon an application 
filed under the rule, the Commission will consider whether the 
participation of the registered investment company in a joint 
enterprise, joint arrangement or profit sharing plan on the basis 
proposed is consistent with the provisions, policies and purposes of 
the Act and the extent to which such participation is on a basis 
different from or less advantageous than that of the other 
participants.

    For the Commission, by the Division of Investment Management, 
under delegated authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-09808 Filed 5-15-17; 8:45 am]
BILLING CODE 8011-01-P
22566 Federal Register / Vol. 82, No. 93 / Tuesday, May 16, 2017 / Notices

POSTAL REGULATORY COMMISSION with the requirements of 39 CFR SECURITIES AND EXCHANGE
3007.40. COMMISSION
[Docket Nos. CP2017–183; MC2017–130 and
CP2017–184; MC2017–131 and CP2017–185] The Commission invites comments on [Investment Company Act Release No.
whether the Postal Service’s request(s) 32631; File No. 812–14455]
New Postal Products in the captioned docket(s) are consistent
with the policies of title 39. For Allianz Funds, et al.
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
request(s) that the Postal Service states May 10, 2017.
concern market dominant product(s), AGENCY: Securities and Exchange
SUMMARY: The Commission is noticing a applicable statutory and regulatory Commission (‘‘Commission’’).
recent Postal Service filing for the requirements include 39 U.S.C. 3622, 39 ACTION: Notice.
Commission’s consideration concerning U.S.C. 3642, 39 CFR part 3010, and 39
negotiated service agreements. This CFR part 3020, subpart B. For request(s) Notice of an application for an order
notice informs the public of the filing, that the Postal Service states concern pursuant to: (a) Section 6(c) of the
invites public comment, and takes other competitive product(s), applicable Investment Company Act of 1940
administrative steps. statutory and regulatory requirements (‘‘Act’’) granting an exemption from
DATES: Comments are due: May 17, include 39 U.S.C. 3632, 39 U.S.C. 3633, sections 18(f) and 21(b) of the Act; (b)
2017. 39 U.S.C. 3642, 39 CFR part 3015, and section 12(d)(1)(J) of the Act granting an
exemption from section 12(d)(1) of the
ADDRESSES: Submit comments 39 CFR part 3020, subpart B. Comment
Act; (c) sections 6(c) and 17(b) of the
electronically via the Commission’s deadline(s) for each request appear in
Act granting an exemption from sections
Filing Online system at http:// section II. 17(a)(1), 17(a)(2) and 17(a)(3) of the Act;
www.prc.gov. Those who cannot submit and (d) section 17(d) of the Act and rule
II. Docketed Proceeding(s)
comments electronically should contact 17d–1 under the Act to permit certain
the person identified in the FOR FURTHER 1. Docket No(s).: CP2017–183; Filing joint arrangements and transactions.
INFORMATION CONTACT section by Title: Notice of United States Postal Applicants request an order that would
telephone for advice on filing Service of Filing a Functionally permit certain registered open-end
alternatives. Equivalent Global Reseller Expedited management investment companies to
FOR FURTHER INFORMATION CONTACT: Package 2 Negotiated Service participate in a joint lending and
David A. Trissell, General Counsel, at Agreement; Filing Acceptance Date: borrowing facility.
202–789–6820. May 9, 2017; Filing Authority: 39 CFR Applicants: Allianz Funds, Allianz
SUPPLEMENTARY INFORMATION: 3015.5; Public Representative: Katalin Funds Multi-Strategy Trust, AllianzGI
K. Clendenin; Comments Due: May 17, Institutional Multi-Series Trust, and
Table of Contents Premier Multi-Series VIT, registered
2017.
I. Introduction under the Act as open-end management
II. Docketed Proceeding(s)
2. Docket No(s).: MC2017–130 and investment companies with one or more
CP2017–184; Filing Title: Request of the series, and Allianz Global Investors U.S.
I. Introduction United States Postal Service to Add LLC (the ‘‘Adviser’’), registered as an
The Commission gives notice that the Priority Mail Contract 318 to investment adviser under the
Postal Service filed request(s) for the Competitive Product List and Notice of Investment Advisers Act of 1940.
Commission to consider matters related Filing (Under Seal) of Unredacted Filing Dates: The application was
to negotiated service agreement(s). The Governors’ Decision, Contract, and filed on May 5, 2015, and amended on
request(s) may propose the addition or Supporting Data; Filing Acceptance April 4, 2016, September 22, 2016, and
removal of a negotiated service Date: May 9, 2017; Filing Authority: 39 February 15, 2017. Applicants have
agreement from the market dominant or U.S.C. 3642 and 39 CFR 3020.30 et seq.; agreed to file an amendment during the
the competitive product list, or the Public Representative: Kenneth R. notice period, the substance of which is
modification of an existing product Moeller; Comments Due: May 17, 2017. reflected in this notice.
currently appearing on the market Hearing or Notification of Hearing: An
3. Docket No(s).: MC2017–131 and order granting the requested relief will
dominant or the competitive product
CP2017–185; Filing Title: Request of the be issued unless the Commission orders
list.
Section II identifies the docket United States Postal Service to Add a hearing. Interested persons may
number(s) associated with each Postal Priority Mail Express, Priority Mail & request a hearing by writing to the
Service request, the title of each Postal First-Class Package Service Contract 18 Commission’s Secretary and serving
Service request, the request’s acceptance to Competitive Product List and Notice applicants with a copy of the request,
date, and the authority cited by the of Filing (Under Seal) of Unredacted personally or by mail. Hearing requests
Postal Service for each request. For each Governors’ Decision, Contract, and should be received by the Commission
request, the Commission appoints an Supporting Data; Filing Acceptance by 5:30 p.m. on June 5, 2017, and
officer of the Commission to represent Date: May 9, 2017; Filing Authority: 39 should be accompanied by proof of
the interests of the general public in the U.S.C. 3642 and 39 CFR 3020.30 et seq.; service on the applicants, in the form of
proceeding, pursuant to 39 U.S.C. 505 Public Representative: Kenneth R. an affidavit, or, for lawyers, a certificate
(Public Representative). Section II also Moeller; Comments Due: May 17, 2017. of service. Pursuant to Rule 0–5 under
the Act, hearing requests should state
sradovich on DSK3GMQ082PROD with NOTICES

establishes comment deadline(s) This notice will be published in the
pertaining to each request. Federal Register. the nature of the writer’s interest, any
The public portions of the Postal facts bearing upon the desirability of a
Service’s request(s) can be accessed via Stacy L. Ruble, hearing on the matter, the reason for the
the Commission’s Web site (http:// Secretary. request, and the issues contested.
www.prc.gov). Non-public portions of [FR Doc. 2017–09776 Filed 5–15–17; 8:45 am] Persons who wish to be notified of a
the Postal Service’s request(s), if any, hearing may request notification by
BILLING CODE 7710–FW–P
can be accessed through compliance writing to the Commission’s Secretary.

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Document Created: 2017-05-16 13:52:18
Document Modified: 2017-05-16 13:52:18
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.
Dates		The application was filed on May 5, 2015, and amended on April 4, 2016, September 22, 2016, and February 15, 2017. Applicants have agreed to file an amendment during the notice period, the substance of which is reflected in this notice.
Contact		Laura L. Solomon, Senior Counsel, at (202) 551-6915 or Nadya Roytblat, Assistant Chief Counsel, at (202) 551-6823 (Division of Investment Management, Chief Counsel's Office).
FR Citation		82 FR 22566