82 FR 890 - Morgan Stanley ETF Trust, et al.; Notice of Application
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 2 (January 4, 2017)
Federal Register Volume 82, Issue 2 (January 4, 2017)
| Page Range | 890-892 | |
| FR Document | 2016-31860 |
[Federal Register Volume 82, Number 2 (Wednesday, January 4, 2017)] [Notices] [Pages 890-892] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31860] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Investment Company Act Release No. 32405; File No. 812-14655] Morgan Stanley ETF Trust, et al.; Notice of Application December 28, 2016. AGENCY: Securities and Exchange Commission (``Commission''). ACTION: Notice of an application for an order under section 6(c) of the Investment Company Act of 1940 (the ``Act'') for an exemption from sections 2(a)(32), 5(a)(1), 22(d), and 22(e) of the Act and rule 22c-1 under the Act, under sections 6(c) and 17(b) of the Act for an exemption from sections 17(a)(1) and 17(a)(2) of the Act, and under section 12(d)(1)(J) for an exemption from sections 12(d)(1)(A) and 12(d)(1)(B) of the Act. The requested order would permit (a) actively- managed series of certain open-end management investment companies (``Funds'') to issue shares redeemable in large aggregations only (``Creation Units''); (b) secondary market transactions in Fund shares to occur at negotiated market prices rather than at net asset value (``NAV''); (c) certain Funds to pay redemption proceeds, under certain circumstances, more than seven days after the tender of shares for redemption; (d) certain affiliated persons of a Fund to deposit securities into, and receive securities from, the Fund in connection with the purchase and redemption of Creation Units; (e) certain registered management investment companies and unit investment trusts outside of the same group of investment companies as the Funds (``Funds of Funds'') to acquire shares of the Funds; (f) certain Funds (``Feeder Funds'') to create and redeem Creations Units in-kind in a master- feeder structure; and (g) the Funds to issue Shares in less than Creation Unit size to investors participating in a distribution reinvestment program. ----------------------------------------------------------------------- Applicants: Morgan Stanley ETF Trust (the ``Trust''), a Delaware statutory trust that will register under the Act as an open-end management investment [[Page 891]] company with multiple series, Morgan Stanley Investment Management Inc. (the ``Initial Adviser''), a Delaware corporation registered as an investment adviser under the Investment Advisers Act of 1940, and Morgan Stanley Distribution, Inc. (the ``Distributor''), a Pennsylvania corporation and broker-dealer registered under the Securities Exchange Act of 1934 (``Exchange Act''). FILING DATES: The application was filed on June 3, 2016 and amended on November 7, 2016 and December 20, 2016. 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 23, 2017, 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: Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090; Applicants: c/ o Joseph C. Benedetti, Esq., Morgan Stanley Investment Management Inc., 522 Fifth Avenue, New York New York 10036. FOR FURTHER INFORMATION CONTACT: Laura J. Riegel, Senior Counsel, at (202) 551-3038, or Mary Kay Frech, 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. Summary of the Application 1. Applicants request an order that would allow Funds to operate as actively-managed exchange traded funds (``ETFs'').\1\ Fund shares will be purchased and redeemed at their NAV in Creation Units only (other than pursuant to a distribution reinvestment program described in the application). All orders to purchase Creation Units and all redemption requests will be placed by or through an ``Authorized Participant'', which will have signed a participant agreement with the Distributor. Shares will be listed and traded individually on a national securities exchange, where share prices will be based on the current bid/offer market. Any order granting the requested relief would be subject to the terms and conditions stated in the application. --------------------------------------------------------------------------- \1\ Applicants request that the order apply to the initial Fund, as well as to future series of the Trust and any future open-end management investment companies or series thereof (each, included in the term ``Fund''), each of which will operate as an actively- managed ETF. Any Fund will (a) be advised by the Initial Adviser or an entity controlling, controlled by, or under common control with the Initial Adviser (each, an ``Adviser'') and (b) comply with the terms and conditions of the application. --------------------------------------------------------------------------- 2. Each Fund will consist of a portfolio of securities and other assets and investment positions (``Portfolio Instruments''). Each Fund will disclose on its Web site the identities and quantities of the Portfolio Instruments that will form the basis for the Fund's calculation of NAV at the end of the day. 3. Shares will be purchased and redeemed in Creation Units and generally on an in-kind basis. Except where the purchase or redemption will include cash under the limited circumstances specified in the application, purchasers will be required to purchase Creation Units by depositing specified instruments (``Deposit Instruments''), and shareholders redeeming their shares will receive specified instruments (``Redemption Instruments''). The Deposit Instruments and the Redemption Instruments will each correspond pro rata to the positions in the Fund's portfolio (including cash positions) except as specified in the application. 4. Because shares will not be individually redeemable, applicants request an exemption from section 5(a)(1) and section 2(a)(32) of the Act that would permit the Funds to register as open-end management investment companies and issue shares that are redeemable in Creation Units only. 5. Applicants also request an exemption from section 22(d) of the Act and rule 22c-1 under the Act as secondary market trading in shares will take place at negotiated prices, not at a current offering price described in a Fund's prospectus, and not at a price based on NAV. Applicants state that (a) secondary market trading in shares does not involve a Fund as a party and will not result in dilution of an investment in shares, and (b) to the extent different prices exist during a given trading day, or from day to day, such variances occur as a result of third-party market forces, such as supply and demand. Therefore, applicants assert that secondary market transactions in shares will not lead to discrimination or preferential treatment among purchasers. Finally, applicants represent that share market prices will be disciplined by arbitrage opportunities, which should prevent shares from trading at a material discount or premium from NAV. 6. With respect to Funds that hold non-U.S. Portfolio Instruments and that effect creations and redemptions of Creation Units in kind, applicants request relief from the requirement imposed by section 22(e) in order to allow such Funds to pay redemption proceeds within fifteen calendar days following the tender of Creation Units for redemption. Applicants assert that the requested relief would not be inconsistent with the spirit and intent of section 22(e) to prevent unreasonable, undisclosed or unforeseen delays in the actual payment of redemption proceeds. 7. Applicants request an exemption to permit Funds of Funds to acquire Fund shares beyond the limits of section 12(d)(1)(A) of the Act; and the Funds, and any principal underwriter for the Funds, and/or any broker or dealer registered under the Exchange Act, to sell shares to Funds of Funds beyond the limits of section 12(d)(1)(B) of the Act. The application's terms and conditions are designed to, among other things, help prevent any potential (i) undue influence over a Fund 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) and (B) of the Act. 8. Applicants request an exemption from sections 17(a)(1) and 17(a)(2) of the Act to permit persons that are Affiliated Persons, or Second-Tier Affiliates, of the Funds, solely by virtue of certain ownership interests, to effectuate purchases and redemptions in-kind. The deposit procedures for in-kind purchases of Creation Units and the redemption procedures for in-kind redemptions of Creation Units will be the same for all purchases and redemptions and Deposit Instruments and Redemption Instruments will be valued in the same manner as those Portfolio Instruments currently held by [[Page 892]] the Funds. Applicants also seek relief from the prohibitions on affiliated transactions in section 17(a) to permit a Fund to sell its shares to and redeem its shares from a Fund of Funds, and to engage in the accompanying in-kind transactions with the Fund of Funds.\2\ The purchase of Creation Units by a Fund of Funds directly from a Fund will be accomplished in accordance with the policies of the Fund of Funds and will be based on the NAVs of the Funds. --------------------------------------------------------------------------- \2\ The requested relief would apply to direct sales of shares in Creation Units by a Fund to a Fund of Funds and redemptions of those shares. Applicants, moreover, are not seeking relief from section 17(a) for, and the requested relief will not apply to, transactions where a Fund could be deemed an Affiliated Person, or a Second-Tier Affiliate, of a Fund of Funds because an Adviser or an entity controlling, controlled by or under common control with an Adviser provides investment advisory services to that Fund of Funds. --------------------------------------------------------------------------- 9. Applicants also request relief to permit a Feeder Fund to acquire shares of another registered investment company managed by the Adviser having substantially the same investment objectives as the Feeder Fund (``Master Fund'') beyond the limitations in section 12(d)(1)(A) and permit the Master Fund, and any principal underwriter for the Master Fund, to sell shares of the Master Fund to the Feeder Fund beyond the limitations in section 12(d)(1)(B). 10. 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. For the Commission, by the Division of Investment Management, under delegated authority. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-31860 Filed 1-3-17; 8:45 am] BILLING CODE 8011-01-P
![890 Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Notices
POSTAL SERVICE www.prc.gov, Docket Nos. MC2017–74, States Postal Service to Add Priority
CP2017–101. Mail Contract 285 to Competitive
International Product Change—Global Product List. Documents are available at
Expedited Package Services—Non- Stanley F. Mires,
www.prc.gov, Docket Nos. MC2017–75,
Published Rates Attorney, Federal Compliance. CP2017–102.
[FR Doc. 2016–31852 Filed 1–3–17; 8:45 am]
AGENCY: Postal ServiceTM. BILLING CODE 7710–12–P
Stanley F. Mires,
ACTION: Notice. Attorney, Federal Compliance.
[FR Doc. 2016–31851 Filed 1–3–17; 8:45 am]
SUMMARY: The Postal Service gives POSTAL SERVICE BILLING CODE 7710–12–P
notice of filing a request with the Postal
Regulatory Commission to add Global Product Change—Priority Mail Express
Expedited Package Services—Non- and Priority Mail Negotiated Service SECURITIES AND EXCHANGE
Published Rates 11 (GEPS–NPR 11) to Agreement COMMISSION
the Competitive Products List.
AGENCY: Postal ServiceTM. [Investment Company Act Release No.
DATES: Effective date: January 4, 2017.
ACTION: Notice. 32405; File No. 812–14655]
FOR FURTHER INFORMATION CONTACT:
Christopher C. Meyerson, 202–268– SUMMARY: The Postal Service gives Morgan Stanley ETF Trust, et al.;
7820. notice of filing a request with the Postal Notice of Application
SUPPLEMENTARY INFORMATION: The Regulatory Commission to add a
domestic shipping services contract to December 28, 2016.
United States Postal Service® hereby
the list of Negotiated Service AGENCY: Securities and Exchange
gives notice that, pursuant to 39 U.S.C.
Agreements in the Mail Classification Commission (‘‘Commission’’).
3642, on December 27, 2016, it filed
with the Postal Regulatory Commission Schedule’s Competitive Products List. ACTION: Notice of an application for an
a Request of the United States Postal DATES: Effective date: January 4, 2017. order under section 6(c) of the
Service to add Global Expedited FOR FURTHER INFORMATION CONTACT:
Investment Company Act of 1940 (the
Package Services—Non-Published Rates Elizabeth A. Reed, 202–268–3179. ‘‘Act’’) for an exemption from sections
11 (GEPS–NPR 11) to the Competitive 2(a)(32), 5(a)(1), 22(d), and 22(e) of the
SUPPLEMENTARY INFORMATION: The
Products List, and Notice of Filing Act and rule 22c–1 under the Act, under
United States Postal Service® hereby sections 6(c) and 17(b) of the Act for an
GEPS–NPR 11 Model Contract and gives notice that, pursuant to 39 U.S.C.
Application for Non-Public Treatment exemption from sections 17(a)(1) and
3642 and 3632(b)(3), on December 27, 17(a)(2) of the Act, and under section
of Materials Filed Under Seal. 2016, it filed with the Postal Regulatory 12(d)(1)(J) for an exemption from
Documents are available at Commission a Request of the United sections 12(d)(1)(A) and 12(d)(1)(B) of
www.prc.gov, Docket Nos. MC2017–72 States Postal Service to Add Priority the Act. The requested order would
and CP2017–99. Mail Express & Priority Mail Contract 42 permit (a) actively-managed series of
Stanley F. Mires, to Competitive Product List. Documents certain open-end management
are available at www.prc.gov, Docket investment companies (‘‘Funds’’) to
Attorney, Federal Compliance.
Nos. MC2017–73, CP2017–100. issue shares redeemable in large
[FR Doc. 2016–31854 Filed 1–3–17; 8:45 am]
BILLING CODE 7710–12–P Stanley F. Mires, aggregations only (‘‘Creation Units’’); (b)
Attorney, Federal Compliance. secondary market transactions in Fund
[FR Doc. 2016–31853 Filed 1–3–17; 8:45 am]
shares to occur at negotiated market
POSTAL SERVICE prices rather than at net asset value
BILLING CODE 7710–12–P
(‘‘NAV’’); (c) certain Funds to pay
Product Change—Priority Mail redemption proceeds, under certain
Negotiated Service Agreement POSTAL SERVICE circumstances, more than seven days
after the tender of shares for
AGENCY: Postal ServiceTM.
Product Change—Priority Mail redemption; (d) certain affiliated
ACTION: Notice. persons of a Fund to deposit securities
Negotiated Service Agreement
SUMMARY: The Postal Service gives into, and receive securities from, the
AGENCY: Postal ServiceTM. Fund in connection with the purchase
notice of filing a request with the Postal ACTION: Notice.
Regulatory Commission to add a and redemption of Creation Units; (e)
domestic shipping services contract to SUMMARY: The Postal Service gives certain registered management
the list of Negotiated Service notice of filing a request with the Postal investment companies and unit
Agreements in the Mail Classification Regulatory Commission to add a investment trusts outside of the same
Schedule’s Competitive Products List. domestic shipping services contract to group of investment companies as the
the list of Negotiated Service Funds (‘‘Funds of Funds’’) to acquire
DATES: Effective date: January 4, 2017.
Agreements in the Mail Classification shares of the Funds; (f) certain Funds
FOR FURTHER INFORMATION CONTACT: (‘‘Feeder Funds’’) to create and redeem
Elizabeth A. Reed, 202–268–3179. Schedule’s Competitive Products List.
Creations Units in-kind in a master-
SUPPLEMENTARY INFORMATION: The DATES: Effective date: January 4, 2017.
feeder structure; and (g) the Funds to
United States Postal Service® hereby FOR FURTHER INFORMATION CONTACT:
mstockstill on DSK3G9T082PROD with NOTICES
issue Shares in less than Creation Unit
gives notice that, pursuant to 39 U.S.C. Elizabeth A. Reed, 202–268–3179. size to investors participating in a
3642 and 3632(b)(3), on December 28, SUPPLEMENTARY INFORMATION: The distribution reinvestment program.
2016, it filed with the Postal Regulatory United States Postal Service® hereby
Commission a Request of the United gives notice that, pursuant to 39 U.S.C. APPLICANTS: Morgan Stanley ETF Trust
States Postal Service to Add Priority 3642 and 3632(b)(3), on December 28, (the ‘‘Trust’’), a Delaware statutory trust
Mail Contract 284 to Competitive 2016, it filed with the Postal Regulatory that will register under the Act as an
Product List. Documents are available at Commission a Request of the United open-end management investment
VerDate Sep<11>2014 16:46 Jan 03, 2017 Jkt 241001 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 E:\FR\FM\04JAN1.SGM 04JAN1](https://thefederalregister.org/doc/82_FR_892/page/1.svg)
![892 Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Notices
the Funds. Applicants also seek relief For the Commission, by the Division of II. Self-Regulatory Organization’s
from the prohibitions on affiliated Investment Management, under delegated Statement of the Purpose of, and
transactions in section 17(a) to permit a authority. Statutory Basis for, the Proposed Rule
Fund to sell its shares to and redeem its Eduardo A. Aleman, Change
shares from a Fund of Funds, and to Assistant Secretary. In its filing with the Commission, the
engage in the accompanying in-kind [FR Doc. 2016–31860 Filed 1–3–17; 8:45 am] Exchange included statements
transactions with the Fund of Funds.2 BILLING CODE 8011–01–P concerning the purpose of and basis for
The purchase of Creation Units by a the proposed rule change and discussed
Fund of Funds directly from a Fund will any comments it received on the
be accomplished in accordance with the SECURITIES AND EXCHANGE proposed rule change. The text of these
COMMISSION statements may be examined at the
policies of the Fund of Funds and will
be based on the NAVs of the Funds. places specified in Item IV below. The
[Release No. 34–79699; File No. SR– Exchange has prepared summaries, set
9. Applicants also request relief to BatsEDGA–2016–32] forth in Sections A, B, and C below, of
permit a Feeder Fund to acquire shares the most significant parts of such
of another registered investment Self-Regulatory Organizations; Bats statements.
company managed by the Adviser EDGA Exchange, Inc.; Notice of Filing
having substantially the same and Immediate Effectiveness of a A. Self-Regulatory Organization’s
investment objectives as the Feeder Proposed Rule Change To Amend the Statement of the Purpose of, and
Fund (‘‘Master Fund’’) beyond the Market Data Section of Its Fee Statutory Basis for, the Proposed Rule
limitations in section 12(d)(1)(A) and Schedule To Adopt Fees for EDGA Change
permit the Master Fund, and any Summary Depth and Amend Fees for 1. Purpose
principal underwriter for the Master EDGA Depth
The Exchange proposes to amend the
Fund, to sell shares of the Master Fund December 28, 2016. Market Data section of its fee schedule
to the Feeder Fund beyond the Pursuant to Section 19(b)(1) of the to: (i) Adopt fees for a new market data
limitations in section 12(d)(1)(B). Securities Exchange Act of 1934 (the product called EDGA Summary Depth;
10. Section 6(c) of the Act permits the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 and (ii) amend the fees for EDGA Depth.
Commission to exempt any persons or notice is hereby given that on December EDGA Summary Depth
transactions from any provision of the 15, 2016, Bats EDGA Exchange, Inc.
(‘‘EDGA’’ or the ‘‘Exchange’’) filed with EDGA Summary Depth is a data feed
Act if such exemption is necessary or
the Securities and Exchange that will provide aggregated two-sided
appropriate in the public interest and quotations for all displayed orders
consistent with the protection of Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described entered into the System 5 for up to five
investors and the purposes fairly (5) price levels for securities traded on
intended by the policy and provisions of in Items I, II, and III below, which Items
have been prepared by the Exchange. the Exchange and for which the
the Act. Section 12(d)(1)(J) of the Act Exchange reports quotes under the
provides that the Commission may The Exchange has designated the
proposed rule change as one Consolidated Tape Association (‘‘CTA’’)
exempt any person, security, or Plan or the Nasdaq/UTP Plan.6 EDGA
establishing or changing a member due,
transaction, or any class or classes of Summary Depth will also contain the
fee, or other charge imposed by the
persons, securities, or transactions, from Exchange under Section 19(b)(3)(A)(ii) individual last sale information, Market
any provision of section 12(d)(1) if the of the Act 3 and Rule 19b–4(f)(2) Status, Trading Status, and Trade Break
exemption is consistent with the public thereunder,4 which renders the messages. The individual last sale
interest and the protection of investors. proposed rule change effective upon information will include the price, size,
Section 17(b) of the Act authorizes the filing with the Commission. The and time of execution. The last sale
Commission to grant an order Commission is publishing this notice to message will also include the
permitting a transaction otherwise solicit comments on the proposed rule cumulative number of shares executed
prohibited by section 17(a) if it finds change from interested persons. on the Exchange for that trading day.
that (a) the terms of the proposed The Exchange intends to begin to offer
transaction are fair and reasonable and I. Self-Regulatory Organization’s EDGA Summary Depth on January 3,
Statement of the Terms of Substance of 2017.7
do not involve overreaching on the part
the Proposed Rule Change The Exchange now proposes to amend
of any person concerned; (b) the
The Exchange filed a proposal to its fee schedule to incorporate fees for
proposed transaction is consistent with
amend the Market Data section of its fee distribution of EDGA Summary Depth to
the policies of each registered subscribers.8 The proposed fees include
investment company involved; and (c) schedule to: (i) Adopt fees for a new
the proposed transaction is consistent market data product called EDGA 5 ‘‘System’’ is defined as the ‘‘the electronic
with the general purposes of the Act. Summary Depth; and (ii) amend the fees communications and trading facility designated by
for EDGA Depth. the Board through which securities orders of Users
The text of the proposed rule change Are consolidated for ranking, execution and, when
2 The requested relief would apply to direct sales is available at the Exchange’s Web site applicable, routing away.’’ See Exchange Rule
1.5(cc).
of shares in Creation Units by a Fund to a Fund of at www.batstrading.com, at the 6 See Exchange Rule 13.8(f).
mstockstill on DSK3G9T082PROD with NOTICES
Funds and redemptions of those shares. Applicants, principal office of the Exchange, and at 7 See Reminder: Bats Global Markets to Introduce
moreover, are not seeking relief from section 17(a)
the Commission’s Public Reference Bats Summary Depth Feeds on January 3, 2017,
for, and the requested relief will not apply to,
transactions where a Fund could be deemed an
Room. http://cdn.batstrading.com/resources/release_
notes/2017/Reminder-Bats-Global-Markets-to-
Affiliated Person, or a Second-Tier Affiliate, of a Introduce-Bats-Summary-Depth-Feeds-on-Jan-3-
1 15 U.S.C. 78s(b)(1).
Fund of Funds because an Adviser or an entity 2017.pdf.
controlling, controlled by or under common control 2 17 CFR 240.19b–4. 8 The Exchange notes that its affiliated exchanges,
with an Adviser provides investment advisory 3 15 U.S.C. 78s(b)(3)(A)(ii).
Bats EDGX Exchange, Inc. (‘‘EDGX’’), Bats BZX
services to that Fund of Funds. 4 17 CFR 240.19b–4(f)(2). Exchange, Inc. (‘‘BZX’’) and Bats BYX Exchange,
VerDate Sep<11>2014 16:46 Jan 03, 2017 Jkt 241001 PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 E:\FR\FM\04JAN1.SGM 04JAN1](https://thefederalregister.org/doc/82_FR_892/page/3.svg)
Document Created: 2017-01-04 00:29:28
Document Modified: 2017-01-04 00:29:28
| 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 for an order under section 6(c) of the Investment Company Act of 1940 (the ``Act'') for an exemption from sections 2(a)(32), 5(a)(1), 22(d), and 22(e) of the Act and rule 22c-1 under the Act, under sections 6(c) and 17(b) of the Act for an exemption from sections 17(a)(1) and 17(a)(2) of the Act, and under section 12(d)(1)(J) for an exemption from sections 12(d)(1)(A) and 12(d)(1)(B) of the Act. The requested order would permit (a) actively- managed series of certain open-end management investment companies (``Funds'') to issue shares redeemable in large aggregations only (``Creation Units''); (b) secondary market transactions in Fund shares to occur at negotiated market prices rather than at net asset value (``NAV''); (c) certain Funds to pay redemption proceeds, under certain circumstances, more than seven days after the tender of shares for redemption; (d) certain affiliated persons of a Fund to deposit securities into, and receive securities from, the Fund in connection with the purchase and redemption of Creation Units; (e) certain registered management investment companies and unit investment trusts outside of the same group of investment companies as the Funds (``Funds of Funds'') to acquire shares of the Funds; (f) certain Funds (``Feeder Funds'') to create and redeem Creations Units in-kind in a master- feeder structure; and (g) the Funds to issue Shares in less than Creation Unit size to investors participating in a distribution reinvestment program. | |
| Dates | The application was filed on June 3, 2016 and amended on November 7, 2016 and December 20, 2016. | |
| Contact | Laura J. Riegel, Senior Counsel, at (202) 551-3038, or Mary Kay Frech, Branch Chief, at (202) 551-6821 (Division of Investment Management, Chief Counsel's Office). | |
| FR Citation | 82 FR 890 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR