ETF Series Solutions and U.S. Global Investors, Inc.; Notice of Application November 18, 2015, 73262-73263 [2015-29868]
Download as PDF
<![CDATA[
mstockstill on DSK4VPTVN1PROD with NOTICES
73262
Federal Register / Vol. 80, No. 226 / Tuesday, November 24, 2015 / Notices
Share for the Trusts and their respective
NAVs, do commenters agree with the
Exchange’s assertions? Have
commenters observed any problems
with respect to the trading or valuation
of FXE or FXY? For example, do
commenters believe that the markets
prices for these products closely track
the underlying values of their
portfolios?
7. Have commenters observed the
Strategy being employed with respect to
FXE or FXY, and if so, have commenters
observed any deleterious effects of the
Strategy?
8. The Exchange asserts that the
Strategy is not available with asset
classes other than exchange-traded
products.25 Do commenters agree with
this assertion? If commenters believe
that the Strategy is available for
exchange-traded products, do
commenters believe that certain
exchange-traded products or types of
exchange-traded products are more
susceptible to the Strategy than others?
For example, would an exchange-traded
product be susceptible to Management
Fee Decay if the returns on its portfolio
exceeded its management fee? Does the
nature of the assets held by an
exchange-traded product affect its
vulnerability to the alleged Strategy?
9. The Exchange states that the
sponsor represents that, ‘‘because of
large outstanding short positions in the
shares . . . it is difficult to borrow
shares, particularly for market
participants that are not Authorized
Participants that are seeking to engage
in short selling for trading strategies
other than the Strategy.’’ 26 What are
commenters’ views of these assertions?
10. What are the prevailing securities
lending rates that commenters have
observed for shares of FXE and FXY? Do
commenters have a view regarding
whether the Strategy is viable under
these observed securities lending rates?
11. The Exchange states that,
according to the sponsor, ‘‘the ETF Loan
Fee is not expected to negatively affect
short selling generally, but rather only
affect certain types of short selling
activities conducted by certain market
participants (namely the Strategy) at the
expense of long investors.’’ 27 What are
commenters’ views concerning this
assertion? For example, what are
commenters’ views about the effect of
the proposed rule change on investors
who wish to express a bearish view on
either the euro or the yen, or to hedge
a long position in euros or yen, by
25 See
id. at 7, 80 FR at 50703.
id. at 8, 80 FR at 50703.
27 See id. at 16, 80 FR at 50705.
26 See
VerDate Sep<11>2014
17:20 Nov 23, 2015
Jkt 238001
holding a short position in shares of the
Trusts over some period of time?
12. The proposal would prohibit any
holder of the Shares from lending its
shares or from entering into an
agreement to repurchase the shares
unless the holder (a) self-reports to an
agent of the sponsor of the Trusts and
(b) remits a fee to that agent equal to the
sponsor’s management fee. What are
commenters’ views regarding the policy
implications of permitting an issuer of
securities to place such restrictions on
the transfer of shares that it has issued
in a public offering and that are listed
and traded on a national securities
exchange? In particular, are such
restrictions consistent with Sections
6(b)(5) and 6(b)(8) of the Act? What are
commenters’ views on whether a fee
based on self-reporting of lending or
repurchase activity can be administered
in a manner consistent with Section
6(b)(5) of the Act?
Comments may be submitted by any
of the following methods:
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEArca–2015–68 and should be
submitted on or before December 15,
2015. Rebuttal comments should be
submitted by December 29, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.28
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–29845 Filed 11–23–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2015–68 on the
subject line.
[Investment Company Act Release No.
31905; 812–14451]
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Numbers SR–NYSEArca–2015–68. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of these
filings also will be available for
ACTION:
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
ETF Series Solutions and U.S. Global
Investors, Inc.; Notice of Application
November 18, 2015
Securities and Exchange
Commission (‘‘Commission’’).
AGENCY:
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 subadvisers.
ETF Series Solutions (the
‘‘Trust’’), a Delaware statutory trust
registered under the Act as an open-end
management investment company with
multiple series, and U.S. Global
Investors, Inc., a Texas corporation
registered as an investment adviser
under the Investment Advisers Act of
1940 (‘‘the ‘‘Adviser,’’ and, collectively
with the Trust, the ‘‘Applicants’’).
APPLICANTS:
28 17
E:\FR\FM\24NON1.SGM
CFR 200.30–3(a)(57).
24NON1
Federal Register / Vol. 80, No. 226 / Tuesday, November 24, 2015 / Notices
The application was filed
April 28, 2015, and amended on
September 25, 2015.
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 December 14, 2015, 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: Susan B. McGee and James
L. Love, U.S. Global Investors, Inc., 7900
Callaghan Road, San Antonio, TX
78229; and Michael D. Barolsky, ETF
Series Solutions, 615 E. Michigan Street,
Milwaukee, WI 53202.
FOR FURTHER INFORMATION CONTACT:
Emerson S. Davis, Senior Counsel, at
(202) 551–6868, or Daniele Marchesani,
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 https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
FILING DATES:
Summary of the Application
mstockstill on DSK4VPTVN1PROD with NOTICES
1. The Adviser will serve as the
investment adviser to the Funds
pursuant to an investment advisory
agreement with the Trust (the
‘‘Investment Management
Agreement’’).1 The Adviser will provide
1 Applicants request relief with respect to any
existing and any future series of the Trust and any
other registered open-end management company or
series thereof that: (a) Is advised by the Adviser or
its successor or by a person controlling, controlled
by, or under common control with the Adviser 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
VerDate Sep<11>2014
17:20 Nov 23, 2015
Jkt 238001
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’’).2 The
Investment Management Agreement
permits the Adviser, subject to the
approval of the Board, to delegate to one
or more sub-advisers (each, a ‘‘SubAdviser’’ and collectively, the ‘‘SubAdvisers’’) 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.
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 SubAdvisory Agreements without obtaining
the shareholder approval required under
Section 15(a) of the Act and Rule 18f–
2 under the Act.3 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 Wholly-Owned Sub-Advisers;
and (b) the aggregate fees paid to SubAdvisers other than Affiliated SubAdvisers and Wholly-Owned SubAdvisers; and (c) the fee paid to each
Affiliated Sub-Adviser (collectively,
‘‘Aggregate Fee Disclosure’’).
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
limited to an entity that results from a
reorganization into another jurisdiction or a change
in the type of business organization.
2 Certain Funds (each, a ‘‘Feeder Fund’’) may
invest substantially all of their assets in a ‘‘Master
Fund’’ pursuant to Section 12(d)(1)(E) of the Act.
3 The requested relief will not extend to any SubAdviser, other than a Wholly-Owned Sub-Adviser,
that is an affiliated person, as defined in Section
2(a)(3) of the Act, of a Fund, a Feeder Fund or the
Adviser, other than by reason of serving as a subadviser to one or more of the Funds (‘‘Affiliated
Sub-Adviser’’). A ‘‘Wholly-Owned Sub-Adviser’’ is
(1) an indirect or direct ‘‘wholly owned subsidiary’’
(as such term is defined in Section 2(a)(43) of the
Act) of the Adviser for that Fund, or (2) a sister
company of the Adviser for that Fund that is an
indirect or direct wholly-owned subsidiary of the
same company that, indirectly or directly, wholly
owns the Adviser.
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
73263
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 SubAdvisory 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 SubAdvisers 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. 2015–29868 Filed 11–23–15; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #14541 and #14542]
California Disaster #CA–00241
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a notice of an
Administrative declaration of a disaster
for the State of California dated 11/17/
2015.
Incident: Severe Rain, Flooding and
Debris Flows.
Incident Period: 10/15/2015.
Effective Date: 11/17/2015.
Physical Loan Application Deadline
Date: 01/19/2016.
Economic Injury (EIDL) Loan
Application Deadline Date: 08/17/2016.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
SUMMARY:
E:\FR\FM\24NON1.SGM
24NON1
]]>Agencies
[Federal Register Volume 80, Number 226 (Tuesday, November 24, 2015)]
[Notices]
[Pages 73262-73263]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-29868]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 31905; 812-14451]
ETF Series Solutions and U.S. Global Investors, Inc.; Notice of
Application November 18, 2015
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.
-----------------------------------------------------------------------
Applicants: ETF Series Solutions (the ``Trust''), a Delaware statutory
trust registered under the Act as an open-end management investment
company with multiple series, and U.S. Global Investors, Inc., a Texas
corporation registered as an investment adviser under the Investment
Advisers Act of 1940 (``the ``Adviser,'' and, collectively with the
Trust, the ``Applicants'').
[[Page 73263]]
Filing Dates: The application was filed April 28, 2015, and amended on
September 25, 2015.
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 December 14, 2015, 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: Susan B. McGee and
James L. Love, U.S. Global Investors, Inc., 7900 Callaghan Road, San
Antonio, TX 78229; and Michael D. Barolsky, ETF Series Solutions, 615
E. Michigan Street, Milwaukee, WI 53202.
FOR FURTHER INFORMATION CONTACT: Emerson S. Davis, Senior Counsel, at
(202) 551-6868, or Daniele Marchesani, 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 https://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 the Trust (the
``Investment Management Agreement'').\1\ The Adviser 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'').\2\ The Investment Management 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.
---------------------------------------------------------------------------
\1\ Applicants request relief with respect to any existing and
any future series of the Trust and any other registered open-end
management company or series thereof that: (a) Is advised by the
Adviser or its successor or by a person controlling, controlled by,
or under common control with the Adviser 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.
\2\ Certain Funds (each, a ``Feeder Fund'') may invest
substantially all of their assets in a ``Master Fund'' pursuant to
Section 12(d)(1)(E) of the Act.
---------------------------------------------------------------------------
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.\3\ 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
Wholly-Owned Sub-Advisers; and (b) the aggregate fees paid to Sub-
Advisers other than Affiliated Sub-Advisers and Wholly-Owned Sub-
Advisers; and (c) the fee paid to each Affiliated Sub-Adviser
(collectively, ``Aggregate Fee Disclosure'').
---------------------------------------------------------------------------
\3\ The requested relief will not extend to any Sub-Adviser,
other than a Wholly-Owned Sub-Adviser, that is an affiliated person,
as defined in Section 2(a)(3) of the Act, of a Fund, a Feeder Fund
or the Adviser, other than by reason of serving as a sub-adviser to
one or more of the Funds (``Affiliated Sub-Adviser''). A ``Wholly-
Owned Sub-Adviser'' is (1) an indirect or direct ``wholly owned
subsidiary'' (as such term is defined in Section 2(a)(43) of the
Act) of the Adviser for that Fund, or (2) a sister company of the
Adviser for that Fund that is an indirect or direct wholly-owned
subsidiary of the same company that, indirectly or directly, wholly
owns the Adviser.
---------------------------------------------------------------------------
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. 2015-29868 Filed 11-23-15; 8:45 am]
BILLING CODE 8011-01-P
