Vanguard STAR Funds, et al.; Notice of Application, 56813-56814 [E7-19639]
Download as PDF
<![CDATA[
Federal Register / Vol. 72, No. 192 / Thursday, October 4, 2007 / Notices
Securities’’) 3 and satisfying
redemptions with portfolio securities of
the New Fund (‘‘Fund Securities’’),
including that the Deposit Securities
and Fund Securities are sold in
transactions that would be exempt from
registration under the Securities Act.4
The specified Deposit Securities and
Fund Securities generally will
correspond pro rata, to the extent
practicable, to the Portfolio Securities of
a New Fund.
7. Applicants state that the New
Funds will operate in a manner
identical to the operation of the existing
Funds in the Prior Order, except as
specifically noted by applicants (and
summarized in this notice). The New
Funds will comply with the terms and
provisions of the Prior Order except as
modified by this application. Applicants
agree that any amended order granting
the requested relief will be subject to the
same conditions as those imposed by
the Prior Order. Applicants believe that
the requested relief continues to meet
the necessary exemptive standards.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–19630 Filed 10–3–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
28009; 812–13412]
Vanguard STAR Funds, et al.; Notice of
Application
September 28, 2007.
Securities and Exchange
Commission (‘‘Commission’’).
pwalker on PROD1PC71 with NOTICES
AGENCY:
3 Applicants state that a cash-in-lieu amount will
replace any ‘‘to-be-announced’’ (‘‘TBA’’) transaction
that is listed as a Deposit Security or Fund Security
of any New Fund. A TBA transaction is a method
of trading mortgage-backed securities where the
buyer and seller agree upon general trade
parameters such as agency, settlement date, par
amount and price. The actual pools delivered
generally are determined two days prior to the
settlement date. The amount of substituted cash in
the case of TBA transactions will be equivalent to
the value of the TBA transaction listed as a Deposit
Security or Fund Security.
4 In accepting Deposit Securities and satisfying
redemptions with Fund Securities that are
restricted securities eligible for resale pursuant to
rule 144A under the Securities Act, the New Funds
will comply with the conditions of rule 144A,
including in satisfying redemptions with such rule
144A eligible restricted Fund Securities. The
prospectus for a New Fund will also state that an
authorized participant that is not a ‘‘Qualified
Institutional Buyer’’ as defined in rule 144A under
the Securities Act, will not be able to receive, as
part of a redemption, restricted securities eligible
for resale under rule 144A.
VerDate Aug<31>2005
16:20 Oct 03, 2007
Jkt 214001
Notice of an application under
section 6(c) of the Investment Company
Act of 1940 (‘‘Act’’) for an exemption
from rule 12d1–2(a) under the Act.
ACTION:
Applicants
request an order to permit funds of
funds relying on rule 12d1–2 under the
Act to invest in certain financial
instruments.
APPLICANTS: Vanguard STAR funds,
Vanguard Chester Funds, Vanguard
Trustees’ Equity Fund, Vanguard
Variable Insurance Funds (collectively,
the ‘‘Trusts’’), The Vanguard Group, Inc.
(‘‘VGI’’) and Vanguard Marketing
Corporation (‘‘VMC’’).
FILING DATES: The application was filed
on August 10, 2007, and amended on
September 24 and 28, 2007.
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 October 23, 2007, and
should be accompanied by proof of
service on applicants, in the form of an
affidavit or, for lawyers, a certificate of
service. Hearing requests should state
the nature of the writer’s interest, 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, Commission, 100
F Street, NE., Washington, DC 20549–
1090; Applicants, c/o Nathan M. Will,
The Vanguard Group, Inc., P.O. Box
2600, Valley Forge, PA 19482.
FOR FURTHER INFORMATION CONTACT:
Donna Tumminio, Law Clerk, at (202)
551–6826, or Michael W. Mundt,
Assistant Director, at (202) 551–6821
(Division of Investment Management,
Office of Investment Company
Regulation).
SUMMARY OF APPLICATION:
The
following is a summary of the
application. The complete application
may be obtained for a fee at the
Commission’s Public Reference Branch,
100 F Street, NE., Washington, DC
20549–0104 (telephone (202) 551–8090).
SUPPLEMENTARY INFORMATION:
Applicants’ Representations
1. The Trusts are Delaware statutory
trusts and are registered under the Act
as open-end management investment
companies. The Trusts offer separate
series (‘‘Funds’’) that may invest in
other registered investment companies
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
56813
in reliance on section 12(d)(1)(G) of the
Act and rule 12d1–2 under the Act
(‘‘Underlying Funds’’). Applicants
propose that the Funds be permitted to
invest in futures contracts, options on
futures contracts, swap agreements,
derivatives, and other financial
instruments that may not be securities
within the meaning of section 2(a)(36) of
the Act (‘‘Other Investments’’), in
addition to Underlying Funds.1
2. VGI is a Pennsylvania corporation
that is wholly and jointly owned by
certain registered investment
companies. VGI is registered as an
investment adviser under the
Investment Advisers Act of 1940 and as
a transfer agent under the Securities
Exchange Act of 1934 (‘‘Exchange Act’’).
VGI provides each of the Funds with
corporate management, administrative,
transfer agency, and, in some cases,
investment advisory services. VMC is a
registered broker-dealer under the
Exchange Act and is a wholly owned
subsidiary of VGI. VMC provides all
distribution and marketing services for
the Funds.
Applicants’ Legal Analysis
1. Section 12(d)(1)(A) of the Act
provides that no registered investment
company (‘‘acquiring company’’) may
acquire securities of another investment
company (‘‘acquired company’’) if such
securities represent more than 3% of the
acquired company’s outstanding voting
stock or more than 5% of the acquiring
company’s total assets, or if such
securities, together with the securities of
other investment companies, represent
more than 10% of the acquiring
company’s total assets. Section
12(d)(1)(B) of the Act provides that no
registered open-end investment
company may sell its securities to
another investment company if the sale
will cause the acquiring company to
own more than 3% of the acquired
company’s voting stock, or cause more
than 10% of the acquired company’s
voting stock to be owned by investment
companies.
2. Section 12(d)(1)(G) of the Act
provides that section 12(d)(1) will not
apply to securities of an acquired
company purchased by an acquiring
company if: (i) The acquiring company
and acquired company are part of the
1 Other Investments do not include shares of any
registered investment companies that are not part
of the ‘‘same group of investment companies,’’ as
defined in section 12(d)(1)(G)(ii) of the Act, as the
Trusts. Applicants request that the relief also apply
to any future Fund, whether organized as an
investment company or as a series thereof, which
is advised by VGI or any entity controlling,
controlled by or under common control with VGI
and which is part of the same group of investment
companies as the Funds.
E:\FR\FM\04OCN1.SGM
04OCN1
pwalker on PROD1PC71 with NOTICES
56814
Federal Register / Vol. 72, No. 192 / Thursday, October 4, 2007 / Notices
same group of investment companies;
(ii) the acquiring company holds only
securities of acquired companies that
are part of the same group of investment
companies, government securities, and
short-term paper; (iii) the aggregate sales
loads and distribution-related fees of the
acquiring company and the acquired
company are not excessive under rules
adopted pursuant to section 22(b) or
section 22(c) of the Act by a securities
association registered under section 15A
of the Exchange Act or by the
Commission; and (iv) the acquired
company has a policy that prohibits it
from acquiring securities of registered
open-end management investment
companies or registered unit investment
trusts in reliance on section 12(d)(1)(F)
or (G) of the Act.
3. Rule 12d1–2 under the Act permits
a registered open-end investment
company or a registered unit investment
trust that relies on section 12(d)(1)(G) of
the Act to acquire, in addition to
securities issued by another registered
investment company in the same group
of investment companies, government
securities, and short-term paper: (1)
Securities issued by an investment
company that is not in the same group
of investment companies, when the
acquisition is in reliance on section
12(d)(1)(A) or 12(d)(1)(F) of the Act; (2)
securities (other than securities issued
by an investment company); and (3)
securities issued by a money market
fund, when the investment is in reliance
on rule 12d1–1 under the Act. For the
purposes of rule 12d1–2, ‘‘securities’’
means any security as defined in section
2(a)(36) of the Act.
4. Section 6(c) of the Act provides that
the Commission may exempt any
person, security, or transaction from any
provisions of the Act, or from any rule
under 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 policies and
provisions of the Act.
5. Applicants state that the proposed
arrangement would comply with the
provisions of rule 12d1–2 under the Act,
but for the fact that the Funds may
invest a portion of their assets in Other
Investments. Applicants request an
order under section 6(c) of the Act for
an exemption from rule 12d1–2(a) to
allow the Funds to invest in Other
Investments. Applicants assert that
permitting the Funds to invest in Other
Investments as described in the
application would not raise any of the
concerns that the requirements of
section 12(d)(1) were designed to
address.
VerDate Aug<31>2005
16:20 Oct 03, 2007
Jkt 214001
Applicants’ Conditions
Applicants agree that the order
granting the requested relief will be
subject to the following conditions:
1. Prior to approving any investment
advisory agreement under section 15 of
the Act, the board of trustees of the
appropriate Fund, including a majority
of the trustees who are not ‘‘interested
persons,’’ as defined in section 2(a)(19)
of the Act, will find that the advisory
fees, if any, charged under the
agreement are based on services
provided that are in addition to, rather
than duplicative of, services provided
pursuant to any Underlying Fund’s
advisory agreement. Such finding, and
the basis upon which the finding is
made, will be recorded fully in the
minute books of the appropriate Fund.
2. Applicants will comply with all
provisions of rule 12d1–2 under the Act,
except for paragraph (a)(2), to the extent
that it restricts any Fund from investing
in Other Investments as described in the
application.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–19639 Filed 10–3–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56555; File Nos. SR–Amex–
2007–65; SR–BSE–2007–45; SR–CBOE–
2007–64; SR–ISE–2007–44; SR–NYSEArca–
2007–65]
Self-Regulatory Organizations;
American Stock Exchange LLC;
Boston Stock Exchange, Inc; Chicago
Board Options Exchange, Incorporated
and International Securities Exchange,
LLC: Notice of Filing of Proposed Rule
Changes Relating to the Definition of a
Complex Trade; NYSE Arca, Inc.:
Notice of Filing of Proposed Rule
Change and Amendment No. 1 Thereto
Relating to the Definition of a Complex
Trade
September 27, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’)1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 27,
2007, September 13, 2007, June 12,
2007, June 1, 2007, and July 6, 2007, the
American Stock Exchange LLC
(‘‘Amex’’), the Boston Stock Exchange,
Inc. (‘‘BSE’’), the Chicago Board Options
1 15
2 17
PO 00000
U.S.C. 78s(b)(l).
CFR 240. 19b–4.
Frm 00097
Fmt 4703
Sfmt 4703
Exchange, Incorporated (‘‘CBOE’’), the
International Securities Exchange, LLC
(‘‘ISE’’), and NYSE Arca, Inc. (‘‘NYSE
Arca’’) (each, an ‘‘Exchange’’ and,
collectively, the ‘‘Exchanges’’),
respectively, filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
changes as described in Items I, II and
III below, which Items have been
substantially prepared by the
Exchanges. On July 11, 2007, NYSE
Arca filed Amendment No. 1 to its
proposed rule change.3 The Commission
is publishing this notice to solicit
comments on the proposed rule
changes, as amended, from interested
persons.
I. Self-Regulatory Organizations’
Statement of the Terms of Substance of
the Proposed Rule Changes
The Exchanges propose to amend the
definition of ‘‘complex trade’’ set forth
in their respective rules pertaining to
the Intermarket Options Linkage
(‘‘Linkage’’) to include stock-option
trades. The text of the proposed rule
changes is available at the Exchanges’
Web sites,4 the Exchanges’ principal
offices, and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organizations’
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Changes
In their filings with the Commission,
each Exchange included statements
concerning the purpose of, and basis for,
their proposed rule changes and
discussed any comments they received
on the proposed rule changes. The text
of these statements may be examined at
the places specified in Item IV below.
The Exchanges have prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organizations’
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Changes
1. Purpose
Under Section 8(c)(iii)(G) of the Plan
for the Purpose of Creating and
Operating an Intermarket Option
Linkage (‘‘Linkage Plan’’),5 the Linkage
3 Amendment No. 1 to SR–NYSEArca–2007–65
effected technical corrections to the proposed rule
change.
4 See https://www.amex.com, https://
www.bostonstock.com, https://www.cboe.com,
https://www.ise.com, and https://www.nyse.com.
5 On July 28, 2000, the Commission approved a
national market system plan for the purpose of
creating and operating the Linkage proposed by
Amex, CBOE, and ISE. See Securities Exchange Act
E:\FR\FM\04OCN1.SGM
04OCN1
]]>Agencies
[Federal Register Volume 72, Number 192 (Thursday, October 4, 2007)]
[Notices]
[Pages 56813-56814]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19639]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 28009; 812-13412]
Vanguard STAR Funds, et al.; Notice of Application
September 28, 2007.
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 rule 12d1-2(a)
under the Act.
-----------------------------------------------------------------------
Summary of Application: Applicants request an order to permit funds of
funds relying on rule 12d1-2 under the Act to invest in certain
financial instruments.
Applicants: Vanguard STAR funds, Vanguard Chester Funds, Vanguard
Trustees' Equity Fund, Vanguard Variable Insurance Funds (collectively,
the ``Trusts''), The Vanguard Group, Inc. (``VGI'') and Vanguard
Marketing Corporation (``VMC'').
Filing Dates: The application was filed on August 10, 2007, and amended
on September 24 and 28, 2007.
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 October 23, 2007, and should be accompanied by proof of service
on applicants, in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, 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, Commission, 100 F Street, NE., Washington, DC
20549-1090; Applicants, c/o Nathan M. Will, The Vanguard Group, Inc.,
P.O. Box 2600, Valley Forge, PA 19482.
FOR FURTHER INFORMATION CONTACT: Donna Tumminio, Law Clerk, at (202)
551-6826, or Michael W. Mundt, Assistant Director, at (202) 551-6821
(Division of Investment Management, Office of Investment Company
Regulation).
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee at the
Commission's Public Reference Branch, 100 F Street, NE., Washington, DC
20549-0104 (telephone (202) 551-8090).
Applicants' Representations
1. The Trusts are Delaware statutory trusts and are registered
under the Act as open-end management investment companies. The Trusts
offer separate series (``Funds'') that may invest in other registered
investment companies in reliance on section 12(d)(1)(G) of the Act and
rule 12d1-2 under the Act (``Underlying Funds''). Applicants propose
that the Funds be permitted to invest in futures contracts, options on
futures contracts, swap agreements, derivatives, and other financial
instruments that may not be securities within the meaning of section
2(a)(36) of the Act (``Other Investments''), in addition to Underlying
Funds.\1\
---------------------------------------------------------------------------
\1\ Other Investments do not include shares of any registered
investment companies that are not part of the ``same group of
investment companies,'' as defined in section 12(d)(1)(G)(ii) of the
Act, as the Trusts. Applicants request that the relief also apply to
any future Fund, whether organized as an investment company or as a
series thereof, which is advised by VGI or any entity controlling,
controlled by or under common control with VGI and which is part of
the same group of investment companies as the Funds.
---------------------------------------------------------------------------
2. VGI is a Pennsylvania corporation that is wholly and jointly
owned by certain registered investment companies. VGI is registered as
an investment adviser under the Investment Advisers Act of 1940 and as
a transfer agent under the Securities Exchange Act of 1934 (``Exchange
Act''). VGI provides each of the Funds with corporate management,
administrative, transfer agency, and, in some cases, investment
advisory services. VMC is a registered broker-dealer under the Exchange
Act and is a wholly owned subsidiary of VGI. VMC provides all
distribution and marketing services for the Funds.
Applicants' Legal Analysis
1. Section 12(d)(1)(A) of the Act provides that no registered
investment company (``acquiring company'') may acquire securities of
another investment company (``acquired company'') if such securities
represent more than 3% of the acquired company's outstanding voting
stock or more than 5% of the acquiring company's total assets, or if
such securities, together with the securities of other investment
companies, represent more than 10% of the acquiring company's total
assets. Section 12(d)(1)(B) of the Act provides that no registered
open-end investment company may sell its securities to another
investment company if the sale will cause the acquiring company to own
more than 3% of the acquired company's voting stock, or cause more than
10% of the acquired company's voting stock to be owned by investment
companies.
2. Section 12(d)(1)(G) of the Act provides that section 12(d)(1)
will not apply to securities of an acquired company purchased by an
acquiring company if: (i) The acquiring company and acquired company
are part of the
[[Page 56814]]
same group of investment companies; (ii) the acquiring company holds
only securities of acquired companies that are part of the same group
of investment companies, government securities, and short-term paper;
(iii) the aggregate sales loads and distribution-related fees of the
acquiring company and the acquired company are not excessive under
rules adopted pursuant to section 22(b) or section 22(c) of the Act by
a securities association registered under section 15A of the Exchange
Act or by the Commission; and (iv) the acquired company has a policy
that prohibits it from acquiring securities of registered open-end
management investment companies or registered unit investment trusts in
reliance on section 12(d)(1)(F) or (G) of the Act.
3. Rule 12d1-2 under the Act permits a registered open-end
investment company or a registered unit investment trust that relies on
section 12(d)(1)(G) of the Act to acquire, in addition to securities
issued by another registered investment company in the same group of
investment companies, government securities, and short-term paper: (1)
Securities issued by an investment company that is not in the same
group of investment companies, when the acquisition is in reliance on
section 12(d)(1)(A) or 12(d)(1)(F) of the Act; (2) securities (other
than securities issued by an investment company); and (3) securities
issued by a money market fund, when the investment is in reliance on
rule 12d1-1 under the Act. For the purposes of rule 12d1-2,
``securities'' means any security as defined in section 2(a)(36) of the
Act.
4. Section 6(c) of the Act provides that the Commission may exempt
any person, security, or transaction from any provisions of the Act, or
from any rule under 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 policies and
provisions of the Act.
5. Applicants state that the proposed arrangement would comply with
the provisions of rule 12d1-2 under the Act, but for the fact that the
Funds may invest a portion of their assets in Other Investments.
Applicants request an order under section 6(c) of the Act for an
exemption from rule 12d1-2(a) to allow the Funds to invest in Other
Investments. Applicants assert that permitting the Funds to invest in
Other Investments as described in the application would not raise any
of the concerns that the requirements of section 12(d)(1) were designed
to address.
Applicants' Conditions
Applicants agree that the order granting the requested relief will
be subject to the following conditions:
1. Prior to approving any investment advisory agreement under
section 15 of the Act, the board of trustees of the appropriate Fund,
including a majority of the trustees who are not ``interested
persons,'' as defined in section 2(a)(19) of the Act, will find that
the advisory fees, if any, charged under the agreement are based on
services provided that are in addition to, rather than duplicative of,
services provided pursuant to any Underlying Fund's advisory agreement.
Such finding, and the basis upon which the finding is made, will be
recorded fully in the minute books of the appropriate Fund.
2. Applicants will comply with all provisions of rule 12d1-2 under
the Act, except for paragraph (a)(2), to the extent that it restricts
any Fund from investing in Other Investments as described in the
application.
For the Commission, by the Division of Investment Management,
under delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-19639 Filed 10-3-07; 8:45 am]
BILLING CODE 8011-01-P
