82 FR 60463 - Consulting Group Capital Markets Funds and Consulting Group Advisory Services LLC

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 243 (December 20, 2017)

Page Range		60463-60464
FR Document		2017-27430
Federal Register, Volume 82 Issue 243 (Wednesday, December 20, 2017)
[Federal Register Volume 82, Number 243 (Wednesday, December 20, 2017)]
[Notices]
[Pages 60463-60464]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-27430]



[[Page 60463]]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 32940; File No. 812-14779]


Consulting Group Capital Markets Funds and Consulting Group 
Advisory Services LLC

December 15, 2017.
AGENCY: Securities and Exchange Commission (``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, and 
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:  Consulting Group Capital Markets Funds, a Massachusetts 
business trust that is registered under the Act as an open-end 
management investment company with multiple series (the ``Trust'') and 
Consulting Group Advisory Services LLC (the ``Initial Adviser''), a 
Delaware limited liability company, registered as an investment adviser 
under the Investment Advisers Act of 1940.

Filing Dates:  The application was filed on June 1, 2017 and amended on 
September 22, 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 January 8, 2018, 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: c/o John J. O'Brien, 
Esq., Morgan, Lewis & Bockius LLP, 1701 Market Street, Philadelphia, PA 
19103.

FOR FURTHER INFORMATION CONTACT: Laura J. Riegel, Senior Counsel, at 
(202) 551-3038, or Robert H. Shapiro, 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 website 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 Securities Exchange Act of 1934 to sell shares of 
the Underlying Funds 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 to each existing and 
future series of the Trust and to each existing and future 
registered open-end investment company or series thereof that is 
advised by the Initial Adviser or its successors or by any other 
investment adviser controlling, controlled by, or under common 
control with the Initial Adviser or its successors and is part of 
the same ``group of investment companies'' as the Trust (each, a 
``Fund''). 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. 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 or BDCs, 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 and traded 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 sell shares 
to 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. Certain Underlying Funds may invest up to 25% of their assets in 
a wholly-owned and controlled subsidiary of the Underlying Fund 
organized under the laws of the Cayman Islands as an exempted company 
or under the laws of another non-U.S. jurisdiction (each, a ``Cayman 
Sub''), in order to invest in commodity-related instruments and certain 
other instruments. Applicants state that these Cayman Subs are created 
for tax purposes in order to ensure that the Underlying Fund would 
remain qualified as a regulated investment company for U.S. federal 
income tax purposes.
    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 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.

[[Page 60464]]

    4. 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.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-27430 Filed 12-19-17; 8:45 am]
 BILLING CODE 8011-01-P
60464 Federal Register / Vol. 82, No. 243 / Wednesday, December 20, 2017 / Notices

4. Section 12(d)(1)(J) of the Act FOR FURTHER INFORMATION CONTACT: A. FOR FURTHER INFORMATION CONTACT:
provides that the Commission may Escobar, Office of Disaster Assistance, Bryan Koontz, 202–647–3030,
exempt any person, security, or U.S. Small Business Administration, koontzbk@state.gov.
transaction, or any class or classes of 409 3rd Street SW, Suite 6050, SUPPLEMENTARY INFORMATION:
persons, securities, or transactions, from Washington, DC 20416, (202) 205–6734. Additional information concerning the
any provision of section 12(d)(1) if the SUPPLEMENTARY INFORMATION: Notice is Pembina-Emerson POE border crossing
exemption is consistent with the public hereby given that as a result of the facilities and documents related to the
interest and the protection of investors. Administrator’s EIDL declaration, Department of State’s review of the
Section 17(b) of the Act authorizes the applications for economic injury application for a Presidential permit can
Commission to grant an order disaster loans may be filed at the be found at https://www.state.gov/
permitting a transaction otherwise address listed above or other locally documents/organization/259783.pdf.
prohibited by section 17(a) if it finds announced locations. The following Following is the text of the permit, as
that (a) the terms of the proposed areas have been determined to be issued:
transaction are fair and reasonable and adversely affected by the disaster:
do not involve overreaching on the part PRESIDENTIAL PERMIT
Primary Counties: Missoula AUTHORIZING THE STATE OF
of any person concerned; (b) the Contiguous Counties:
proposed transaction is consistent with NORTH DAKOTA TO CONSTRUCT,
Montana: Flathead, Granite, Lake, CONNECT, OPERATE, AND
the policies of each registered Mineral, Powell, Ravalli, Sanders
investment company involved; and (c) MAINTAIN THE PEMBINA-EMERSON
Idaho: Clearwater, Idaho PORT OF ENTRY AT THE
the proposed transaction is consistent
with the general purposes of the Act. The Interest Rates are: INTERNATIONAL BOUNDARY
Section 6(c) of the Act permits the Businesses and Small Agricultural BETWEEN THE UNITED STATES AND
Commission to exempt any persons or Cooperatives without Credit Available CANADA
transactions from any provision of the Elsewhere.
Non-Profit Organizations without By virtue of the authority vested in
Act if such exemption is necessary or me as Acting Assistant Secretary of
appropriate in the public interest and Credit Available Elsewhere.
The number assigned to this disaster State for the Bureau of Oceans and
consistent with the protection of International Environmental and
investors and the purposes fairly for economic injury is 154060.
The States which received an EIDL Scientific Affairs, including those
intended by the policy and provisions of authorities under Executive Order
the Act. Declaration # are Montana, Idaho.
11423, 33 Fed. Reg. 11741 (1968); as
(Catalog of Federal Domestic Assistance amended by Executive Order 12847 of
For the Commission, by the Division of
Number 59008) May 17, 1993, 58 Fed. Reg. 29511
Investment Management, pursuant to
delegated authority. Dated: December 11, 2017. (1993), Executive Order 13284 of
Robert W. Errett, Linda E. McMahon, January 23, 2003, 68 Fed. Reg. 4075
Deputy Secretary. Administrator. (2003), and Executive Order 13337 of
[FR Doc. 2017–27430 Filed 12–19–17; 8:45 am] [FR Doc. 2017–27365 Filed 12–19–17; 8:45 am] April 30, 2004, 69 Fed. Reg. 25299
BILLING CODE 8011–01–P BILLING CODE 8025–01–P
(2004); 25299 (2004); and Department of
State Delegation of Authority 118–2 of
January 26, 2006 and Delegation 415 of
January 18, 2017; having considered the
SMALL BUSINESS ADMINISTRATION DEPARTMENT OF STATE environmental effects of the proposed
action consistent with the National
[Disaster Declaration #15406; MONTANA [Public Notice: 10201]
Disaster Number MT–00115 Declaration of
Environmental Policy Act of 1969, as
Economic Injury] amended (83 Stat. 852, 42 U.S.C. 4321
Notice of Issuance of a Presidential
et seq.), and other statutes relating to
Permit to the State of North Dakota
Administrative Declaration of an environmental concerns; having
Economic Injury Disaster for the State AGENCY: Department of State. considered the proposed action
of MONTANA ACTION: Notice. consistent with the National Historic
Preservation Act of 1966, as amended
AGENCY: U.S. Small Business SUMMARY: The Acting Assistant (80 Stat. 917, 16 U.S.C. 470f et seq.); and
Administration. Secretary of State for Oceans and having requested and received the views
ACTION: Notice. International Environmental and of various of the federal departments
Scientific Affairs, acting pursuant to and other interested persons; I hereby
SUMMARY: This is a notice of an delegated authorities, issued a grant permission, subject to the
Economic Injury Disaster Loan (EIDL) Presidential permit to the State of North conditions herein set forth, to the State
declaration for the State of Montana, Dakota on October 24, 2017, authorizing of North Dakota (hereinafter referred to
dated 12/11/2017. the State of North Dakota to construct, as ‘‘permittee’’), to construct, connect,
Incident: Rice Ridge Fire. connect, operate, and maintain the operate, and maintain the Pembina-
Incident Period: 07/24/2017 through existing POE border-crossing facilities at Emerson Port of Entry (hereinafter
10/20/2017. the U.S.-Canada border in Pembina referred to as the ‘‘POE’’).
DATES: Issued on 12/11/2017. County, North Dakota. In accordance The term ‘‘facilities’’ as used in this
sradovich on DSK3GMQ082PROD with NOTICES

Economic Injury (EIDL) Loan with Executive Order 11432 (August 16, permit means the port of entry, its
Application Deadline Date: 09/11/2018. 1968) as amended, the Acting Assistant approaches and any land, structures, or
ADDRESSES: Submit completed loan Secretary of State for Oceans and installations appurtenant thereto,
applications to: U.S. Small Business International Environmental and including all structures as described in
Administration, Processing and Scientific Affairs determined that the May 2, 2016 for a Presidential
Disbursement Center, 14925 Kingsport issuance of this permit would serve the permit (the ‘‘Application’’) submitted by
Road, Fort Worth, TX 76155. national interest. the permitee to the Department of State.

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Document Created: 2018-10-25 10:56:02
Document Modified: 2018-10-25 10:56:02
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 June 1, 2017 and amended on September 22, 2017.
Contact		Laura J. Riegel, Senior Counsel, at (202) 551-3038, or Robert H. Shapiro, Branch Chief, at (202) 551-6821 (Division of Investment Management, Chief Counsel's Office).
FR Citation		82 FR 60463