82 FR 42381 - American Century International Bond Funds, et al.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 172 (September 7, 2017)

Page Range		42381-42382
FR Document		2017-18931
Federal Register, Volume 82 Issue 172 (Thursday, September 7, 2017)
[Federal Register Volume 82, Number 172 (Thursday, September 7, 2017)]
[Notices]
[Pages 42381-42382]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-18931]


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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 32805; File No. 812-14754]


American Century International Bond Funds, et al.

August 31, 2017.
AGENCY:  Securities and Exchange Commission.

ACTION:  Notice.

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    Notice of an application for an order under section 12(d)(1)(J) of 
the Investment Company Act of 1940 (the ``Act'') for an exemption from 
sections 12(d)(1)(A), (B), and (C) of the Act and under sections 6(c) 
and 17(b) of the Act for an exemption from sections 17(a)(1) and (2) of 
the Act. The requested order would permit certain registered open-end 
investment companies to acquire shares of certain registered open-end 
investment companies, registered closed-end investment companies, 
business development companies, as defined in section 2(a)(48) of the 
Act (``BDCs'') and registered unit investment trusts (collectively, 
``Underlying Funds'') that are within and outside the same group of 
investment companies as the acquiring investment companies, in excess 
of the limits in section 12(d)(1) of the Act.
    Applicants: American Century International Bond Funds (``ACIBF''), 
a Massachusetts business trust, and American Century Strategic Asset 
Allocations, Inc. (``ACSAA''), a Maryland corporation, each registered 
under the Act as an open-end management investment company with 
multiple series (each series, a ``Fund'' and collectively, the 
``Funds''); American Century Investment Management, Inc. (``ACIM'' or 
the ``Advisor''), a Delaware Corporation registered as an investment 
adviser under the Investment Advisers Act of 1940; and American Century 
Investment Services, Inc., a Missouri corporation, registered as a 
broker-dealer under the Securities Exchange Act of 1934 (``Exchange 
Act'').
    Filing Dates: The application was filed on March 7, 2017, and 
amended on August 4, 2017.
    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 September 25, 2017 and should be accompanied by proof of

[[Page 42382]]

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: c/o Mr. Giles Walsh, 
Esq., American Century Investments, 4500 Main Street, Kansas City, 
Missouri 64111.

FOR FURTHER INFORMATION CONTACT:  Elizabeth G. Miller, Senior Counsel, 
at (202) 551-8707, or Holly Hunter-Ceci, Assistant Chief Counsel, at 
(202) 551-6825 (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.

Summary of the Application

    1. Applicants request an order to permit (a) a Fund \1\ (each a 
``Fund of Funds'') to acquire shares of Underlying Funds \2\ in excess 
of the limits in sections 12(d)(1)(A) and (C) of the Act and (b) the 
Underlying Funds that are registered open-end investment companies or 
series thereof, their principal underwriters and any broker or dealer 
registered under the Exchange Act to sell shares of the Underlying Fund 
to the Fund of Funds in excess of the limits in section 12(d)(1)(B) of 
the Act.\3\ Applicants also request an order of exemption under 
sections 6(c) and 17(b) of the Act from the prohibition on certain 
affiliated transactions in section 17(a) of the Act to the extent 
necessary to permit the Underlying Funds to sell their shares to, and 
redeem their shares from, the Funds of Funds.\4\ Applicants state that 
such transactions will be consistent with the policies of each Fund of 
Funds and each Underlying Fund and with the general purposes of the Act 
and will be based on the net asset values of the Underlying Funds.
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    \1\ Applicants request that the order apply not only to any 
existing series of ACIBF and ACSAA, but that the order also extend 
to any future series of ACIBF and ACSAA, and any other existing or 
future registered open-end management investment companies and any 
series thereof that are, or in the future be, advised by the Advisor 
or any other investment adviser controlling, controlled by or under 
common control with the Advisor and that are part of the same group 
of investment companies, as defined in section 12(d)(1)(G)(ii) of 
the Act, as ACIBF and ACSAA (together with the existing series of 
ACIBF and ACSAA, each series a ``Fund''). All references to the term 
``Advisor'' include successors-in-interest to the Advisor. For 
purposes of the requested order, a successor-in-interest is limited 
to an entity that results from a reorganization into another 
jurisdiction or a change in the type of business organization. For 
purposes of the request for relief, the term ``group of investment 
companies'' means any two or more registered investment companies, 
including closed-end investment companies, that hold themselves out 
to investors as related companies for purposes of investment and 
investor services.
    \2\ Certain of the Underlying Funds have obtained exemptions 
from the Commission necessary to permit their shares to be listed 
and traded on a national securities exchange at negotiated prices 
and, accordingly, to operate as an exchange-traded fund (``ETF'').
    \3\ Applicants do not request relief for the Funds of Funds to 
invest in reliance on the order in BDCs and registered closed-end 
investment companies that are not listed on a national securities 
exchange.
    \4\ A Fund of Funds generally would purchase and sell shares of 
an Underlying Fund that operates as an ETF through secondary market 
transactions rather than through principal transactions with the 
Underlying Fund. Applicants nevertheless request relief from 
sections 17(a)(1) and (2) to permit each Fund of Funds that is an 
affiliated person, or an affiliated person of an affiliated person, 
as defined in section 2(a)(3) of the Act, of an ETF to purchase or 
redeem shares from the ETF. Applicants are not seeking relief from 
section 17(a) for, and the requested relief will not apply to, 
transactions where an ETF could be deemed an affiliated person, or 
an affiliated person of an affiliated person, of a Fund of Funds 
because an investment adviser to the ETF or an entity controlling, 
controlled by or under common control with the investment adviser to 
the ETF is also an investment adviser to the Fund of Funds. A Fund 
of Funds will purchase and sell shares of an Underlying Fund that is 
a closed-end fund through secondary market transactions at market 
prices rather than through principal transactions with the closed-
end fund. Accordingly, applicants are not requesting section 17(a) 
relief with respect to principal transactions with closed-end funds.
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    2. 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 are designed to, among other things, help 
prevent any potential (i) undue influence over an Underlying Fund that 
is not in the same ``group of investment companies'' as the Fund of 
Funds through control or voting power, or in connection with certain 
services, transactions, and underwritings, (ii) excessive layering of 
fees, and (iii) overly complex fund structures, which are the concerns 
underlying the limits in sections 12(d)(1)(A), (B), and (C) of the Act.
    3. 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. 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.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-18931 Filed 9-6-17; 8:45 am]
 BILLING CODE P
Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices 42381

file proposals that are substantially • Send an email to rule-comments@ SECURITIES AND EXCHANGE
similar to this proposal. sec.gov. Please include File Number SR– COMMISSION
The Exchange does not believe that CBOE–2017–058 on the subject line.
[Investment Company Act Release No.
the proposed rule change imposes a 32805; File No. 812–14754]
Paper Comments
burden on intramarket competition
because the proposed provisions apply • Send paper comments in triplicate American Century International Bond
to all market participants equally. to Secretary, Securities and Exchange Funds, et al.
C. Self-Regulatory Organization’s Commission, 100 F Street NE., August 31, 2017.
Statement on Comments on the Washington, DC 20549–1090. AGENCY: Securities and Exchange
Proposed Rule Change Received From All submissions should refer to File Commission.
Members, Participants, or Others Number SR–CBOE–2017–058. This file ACTION: Notice.
The Exchange neither solicited nor number should be included on the Notice of an application for an order
received comments on the proposed subject line if email is used. To help the under section 12(d)(1)(J) of the
rule change. Commission process and review your Investment Company Act of 1940 (the
comments more efficiently, please use ‘‘Act’’) for an exemption from sections
III. Date of Effectiveness of the
only one method. The Commission will 12(d)(1)(A), (B), and (C) of the Act and
Proposed Rule Change and Timing for
post all comments on the Commission’s under sections 6(c) and 17(b) of the Act
Commission Action
Internet Web site (http://www.sec.gov/ for an exemption from sections 17(a)(1)
Because the foregoing proposed rule rules/sro.shtml). Copies of the and (2) of the Act. The requested order
change does not: (i) Significantly affect submission, all subsequent would permit certain registered open-
the protection of investors or the public amendments, all written statements end investment companies to acquire
interest; (ii) impose any significant with respect to the proposed rule shares of certain registered open-end
burden on competition; and (iii) become change that are filed with the investment companies, registered
operative for 30 days from the date on Commission, and all written closed-end investment companies,
which it was filed, or such shorter time communications relating to the business development companies, as
as the Commission may designate, it has proposed rule change between the defined in section 2(a)(48) of the Act
become effective pursuant to Section Commission and any person, other than (‘‘BDCs’’) and registered unit investment
19(b)(3)(A)(iii) of the Act 17 and those that may be withheld from the trusts (collectively, ‘‘Underlying
subparagraph (f)(6) of Rule 19b–4 public in accordance with the Funds’’) that are within and outside the
thereunder.18 provisions of 5 U.S.C. 552, will be same group of investment companies as
At any time within 60 days of the available for Web site viewing and the acquiring investment companies, in
filing of the proposed rule change, the excess of the limits in section 12(d)(1)
printing in the Commission’s Public
Commission summarily may of the Act.
Reference Room, 100 F Street NE., Applicants: American Century
temporarily suspend such rule change if Washington, DC 20549 on official
it appears to the Commission that such International Bond Funds (‘‘ACIBF’’), a
business days between the hours of Massachusetts business trust, and
action is: (i) Necessary or appropriate in
10:00 a.m. and 3:00 p.m. Copies of such American Century Strategic Asset
the public interest; (ii) for the protection
filing also will be available for Allocations, Inc. (‘‘ACSAA’’), a
of investors; or (iii) otherwise in
furtherance of the purposes of the Act. inspection and copying at the principal Maryland corporation, each registered
If the Commission takes such action, the office of the Exchange. All comments under the Act as an open-end
Commission shall institute proceedings received will be posted without change; management investment company with
to determine whether the proposed rule the Commission does not edit personal multiple series (each series, a ‘‘Fund’’
should be approved or disapproved. identifying information from and collectively, the ‘‘Funds’’);
submissions. You should submit only American Century Investment
IV. Solicitation of Comments information that you wish to make Management, Inc. (‘‘ACIM’’ or the
Interested persons are invited to available publicly. All submissions ‘‘Advisor’’), a Delaware Corporation
submit written data, views, and should refer to File Number SR–CBOE– registered as an investment adviser
arguments concerning the foregoing, 2017–058, and should be submitted on under the Investment Advisers Act of
including whether the proposed rule or before September 28, 2017. 1940; and American Century Investment
change is consistent with the Act. Services, Inc., a Missouri corporation,
For the Commission, by the Division of
Comments may be submitted by any of registered as a broker-dealer under the
Trading and Markets, pursuant to delegated
the following methods: Securities Exchange Act of 1934
authority.19
(‘‘Exchange Act’’).
Electronic Comments Eduardo A. Aleman, Filing Dates: The application was
Assistant Secretary. filed on March 7, 2017, and amended on
• Use the Commission’s Internet
[FR Doc. 2017–18939 Filed 9–6–17; 8:45 am] August 4, 2017.
comment form (http://www.sec.gov/ Hearing or Notification of Hearing: An
rules/sro.shtml); or BILLING CODE 8011–01–P
order granting the requested relief will
be issued unless the Commission orders
17 15 U.S.C. 78s(b)(3)(A)(iii). a hearing. Interested persons may
mstockstill on DSK30JT082PROD with NOTICES

18 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
request a hearing by writing to the
the Commission written notice of its intent to file Commission’s Secretary and serving
the proposed rule change, along with a brief applicants with a copy of the request,
description and text of the proposed rule change, personally or by mail. Hearing requests
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
should be received by the Commission
as designated by the Commission. The Exchange by 5:30 p.m. on September 25, 2017 and
has satisfied this requirement. 19 17 CFR 200.30–3(a)(12). should be accompanied by proof of

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Document Created: 2017-09-07 02:01:30
Document Modified: 2017-09-07 02:01:30
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 March 7, 2017, and amended on August 4, 2017.
Contact		Elizabeth G. Miller, Senior Counsel, at (202) 551-8707, or Holly Hunter-Ceci, Assistant Chief Counsel, at (202) 551-6825 (Division of Investment Management, Chief Counsel's Office).
FR Citation		82 FR 42381