Diamond Hill Funds and Diamond Hill Capital Management, Inc., 47562-47563 [2019-19468]
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Federal Register / Vol. 84, No. 175 / Tuesday, September 10, 2019 / Notices
scientific discovery, the development of
technological advances, and increase
the impact of a vibrant bioeconomy on
the Nation’s vitality and our citizens’
lives. To that end, responders are
specifically requested to answer one or
more of the following questions in their
submissions. Consortia responses are
also encouraged.
1. What specific actions could the
U.S. Government take to reinforce a
values-based ecosystem that will guide
the transformation and expansion of the
U.S. Bioeconomy, in both the short- and
long-term? Please consider:
a. Policy or regulatory opportunities
and gaps throughout the continuum of
basic science translation, product
development and commercialization;
b. Scientific areas where research
funding could be strategically targeted
to stimulate discovery;
c. Novel public-private partnership
mechanisms;
d. International opportunities;
e. Challenges to taking identified
actions or implementing change.
2. In what ways can the U.S.
Government partner with the private
sector, industry, professional
organizations, and academia to ensure
the training and continued development
of a skilled workforce to support the
growth of the Bioeconomy? Please
consider:
a. Potential needs and solutions at the
skilled technical, undergraduate,
professional master’s program or
graduate level;
b. Specific needs within basic science,
translational research, product
development, and commercialization;
c. Approaches for the development of
non-traditional, multi-disciplinary
educational backgrounds that address
the convergent nature of emerging
technologies and integrate core values
including safety and security;
d. Effective geographic distribution of
workforce and talent development
across the United States;
e. The development of a public and
private ecosystem that will attract and
retain domestic and foreign talent
within the United States at all skill
levels.
3. In what ways can the U.S.
Government partner with the private
sector, industry, professional
organizations, and academia to establish
a more robust and efficient Bioeconomy
infrastructure? Please consider:
a. Current infrastructure—from
databases to world-class technology and
manufacturing capabilities;
b. Geographic distribution of
manufacturing capabilities compared to
future manufacturing needs;
c. Leveraging existing public-private
partnerships and identifying trusted
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16:56 Sep 09, 2019
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information sharing mechanisms to
accelerate innovation and facilitate
fruitful, equitable domestic and
international collaborations;
d. Institutional models for achieving
translation of basic science discoveries
to application and/or entry into the
marketplace.
4. Across the spectrum, from basic
discovery to practical application, what
data policies, information-sharing
mechanisms, and safeguards will be
necessary for a prosperous U.S.
Bioeconomy? Please consider:
a. Scientific, regulatory,
manufacturing standards and/or
benchmarks and/or best practices
around data that should be developed to
best accelerate Bioeconomy growth;
b. Possible safeguards for technology,
data, and emergent products, such as
patent/intellectual property protection,
data quality and provenance validation,
and privacy and security assurances.
Sean Bonyun,
Chief of Staff, Office of Science and
Technology Policy.
[FR Doc. 2019–19470 Filed 9–9–19; 8:45 am]
BILLING CODE 3270–F9–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
33616; File No. 812–14988]
Diamond Hill Funds and Diamond Hill
Capital Management, Inc.
September 4, 2019.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice.
AGENCY:
Notice of an application for an order
pursuant to: (a) Section 6(c) of the
Investment Company Act of 1940
(‘‘Act’’) granting an exemption from
sections 18(f) and 21(b) of the Act; (b)
section 12(d)(1)(J) of the Act granting an
exemption from section 12(d)(1) of the
Act; (c) sections 6(c) and 17(b) of the
Act granting an exemption from sections
17(a)(1), 17(a)(2) and 17(a)(3) of the Act;
and (d) section 17(d) of the Act and rule
17d–1 under the Act to permit certain
joint arrangements and transactions.
Applicants request an order that would
permit certain registered open-end
management investment companies to
participate in a joint lending and
borrowing facility.
APPLICANTS: Diamond Hill Funds,
established as a business trust under the
laws of Ohio and registered under the
Act as an open-end management
investment company with multiple
series, and Diamond Hill Capital
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
Management, Inc. (the ‘‘Adviser’’), an
Ohio corporation registered as an
investment adviser under the
Investment Advisers Act of 1940.
FILING DATES: The application was filed
on December 19, 2018, and amended on
May 17, 2019.
HEARING OR NOTIFICATION OF HEARING:
An order granting the requested relief
will be issued unless the Commission
orders a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on September 30, 2019 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: Diamond Hill Funds and
Diamond Hill Capital Management, Inc.,
325 John H. McConnell Blvd., Suite 200,
Columbus, Ohio 43215.
FOR FURTHER INFORMATION CONTACT:
Kieran G. Brown, Senior Counsel, at
202–551–6773, or David J. Marcinkus,
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 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. Applicants request an order that
would permit the applicants to
participate in an interfund lending
facility where each Fund could lend
money directly to and borrow money
directly from other Funds to cover
unanticipated cash shortfalls, such as
unanticipated redemptions or trade
fails.1 The Funds will not borrow under
1 Applicants request that the order apply to the
applicants and to any other registered open-end
management investment company or series thereof
(each, a ‘‘Fund’’ and collectively, the ‘‘Funds’’) for
which the Adviser or any successor-in-interest
thereto or an investment adviser controlling,
E:\FR\FM\10SEN1.SGM
10SEN1
Federal Register / Vol. 84, No. 175 / Tuesday, September 10, 2019 / Notices
khammond on DSKBBV9HB2PROD with NOTICES
the facility for leverage purposes and
the loans’ duration will be no more than
7 days.2
2. Applicants anticipate that the
proposed facility would provide a
borrowing Fund with a source of
liquidity at a rate lower than the bank
borrowing rate at times when the cash
position of the Fund is insufficient to
meet temporary cash requirements. In
addition, Funds making short-term cash
loans directly to other Funds would
earn interest at a rate higher than they
otherwise could obtain from investing
their cash in repurchase agreements or
certain other short term money market
instruments. Thus, applicants assert that
the facility would benefit both
borrowing and lending Funds.
3. Applicants agree that any order
granting the requested relief will be
subject to the terms and conditions
stated in the application. Among others,
the Adviser, through a designated
committee, would administer the
facility as a disinterested fiduciary as
part of its duties under the investment
advisory and administrative agreements
with the Funds and would receive no
additional fee as compensation for its
services in connection with the
administration of the facility. The
facility would be subject to oversight
and certain approvals by the Funds’
Board, including, among others,
approval of the interest rate formula and
of the method for allocating loans across
Funds, as well as review of the process
in place to evaluate the liquidity
implications for the Funds. A Fund’s
aggregate outstanding interfund loans
will not exceed 15% of its net assets,
and the Fund’s loans to any one Fund
will not exceed 5% of the lending
Fund’s net assets.3
4. Applicants assert that the facility
does not raise the concerns underlying
section 12(d)(1) of the Act given that the
Funds are part of the same group of
investment companies and there will be
no duplicative costs or fees to the
Funds.4 Applicants also assert that the
controlled by, or under common control with the
Adviser or any successor-in-interest thereto serves
as investment adviser (each such investment
adviser, an ‘‘Adviser’’). For purposes of the
requested order, ‘‘successor-in-interest’’ is limited
to any entity that results from a reorganization into
another jurisdiction or a change in the type of a
business organization. No money market funds will
participate in the proposed credit facility as either
borrowers or lenders.
2 Any Fund, however, will be able to call a loan
on one business day’s notice.
3 Under certain circumstances, a borrowing Fund
will be required to pledge collateral to secure the
loan.
4 Applicants state that the obligation to repay an
interfund loan could be deemed to constitute a
security for the purposes of sections 17(a)(1) and
12(d)(1) of the Act.
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16:56 Sep 09, 2019
Jkt 247001
proposed transactions do not raise the
concerns underlying sections 17(a)(1),
17(a)(3), 17(d) and 21(b) of the Act as
the Funds would not engage in lending
transactions that unfairly benefit
insiders or are detrimental to the Funds.
Applicants state that the facility will
offer both reduced borrowing costs and
enhanced returns on loaned funds to all
participating Funds and each Fund
would have an equal opportunity to
borrow and lend on equal terms based
on an interest rate formula that is
objective and verifiable. With respect to
the relief from section 17(a)(2) of the
Act, applicants note that any collateral
pledged to secure an interfund loan
would be subject to the same conditions
imposed by any other lender to a Fund
that imposes conditions on the quality
of or access to collateral for a borrowing
(if the lender is another Fund) or the
same or better conditions (in any other
circumstance).5
5. Applicants also believe that the
limited relief from section 18(f)(1) of the
Act that is necessary to implement the
facility (because the lending Funds are
not banks) is appropriate in light of the
conditions and safeguards described in
the application and because the Funds
would remain subject to the
requirement of section 18(f)(1) that all
borrowings of a Fund, including
combined interfund loans and bank
borrowings, have at least 300% asset
coverage.
6. 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)
5 Applicants state that any pledge of securities to
secure an interfund loan could constitute a
purchase of securities for purposes of section
17(a)(2) of the Act.
PO 00000
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Fmt 4703
Sfmt 4703
47563
the proposed transaction is consistent
with the general purposes of the Act.
Rule 17d–1(b) under the Act provides
that in passing upon an application filed
under the rule, the Commission will
consider whether the participation of
the registered investment company in a
joint enterprise, joint arrangement or
profit sharing plan on the basis
proposed is consistent with the
provisions, policies and purposes of the
Act and the extent to which such
participation is on a basis different from
or less advantageous than that of the
other participants.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–19468 Filed 9–9–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86867; File No. SR–
NYSEAMER–2019–34]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing of
Proposed Rule Change To Amend Its
NYSE American Equities Price List and
the NYSE American Options Fee
Schedule Related to Co-Location
Services
September 4, 2019.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on August
23, 2019, NYSE American LLC (‘‘NYSE
American’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
NYSE American Equities Price List
(‘‘Price List’’) and the NYSE American
Options Fee Schedule (‘‘Fee Schedule’’)
related to co-location services to provide
access to NMS feeds. The proposed rule
change is available on the Exchange’s
website at www.nyse.com, at the
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
E:\FR\FM\10SEN1.SGM
10SEN1
]]>Agencies
[Federal Register Volume 84, Number 175 (Tuesday, September 10, 2019)]
[Notices]
[Pages 47562-47563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19468]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 33616; File No. 812-14988]
Diamond Hill Funds and Diamond Hill Capital Management, Inc.
September 4, 2019.
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Notice.
-----------------------------------------------------------------------
Notice of an application for an order pursuant to: (a) Section 6(c)
of the Investment Company Act of 1940 (``Act'') granting an exemption
from sections 18(f) and 21(b) of the Act; (b) section 12(d)(1)(J) of
the Act granting an exemption from section 12(d)(1) of the Act; (c)
sections 6(c) and 17(b) of the Act granting an exemption from sections
17(a)(1), 17(a)(2) and 17(a)(3) of the Act; and (d) section 17(d) of
the Act and rule 17d-1 under the Act to permit certain joint
arrangements and transactions. Applicants request an order that would
permit certain registered open-end management investment companies to
participate in a joint lending and borrowing facility.
Applicants: Diamond Hill Funds, established as a business trust under
the laws of Ohio and registered under the Act as an open-end management
investment company with multiple series, and Diamond Hill Capital
Management, Inc. (the ``Adviser''), an Ohio corporation registered as
an investment adviser under the Investment Advisers Act of 1940.
Filing Dates: The application was filed on December 19, 2018, and
amended on May 17, 2019.
Hearing or Notification of Hearing: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicants with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on September 30, 2019 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: Diamond Hill Funds
and Diamond Hill Capital Management, Inc., 325 John H. McConnell Blvd.,
Suite 200, Columbus, Ohio 43215.
FOR FURTHER INFORMATION CONTACT: Kieran G. Brown, Senior Counsel, at
202-551-6773, or David J. Marcinkus, 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 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. Applicants request an order that would permit the applicants to
participate in an interfund lending facility where each Fund could lend
money directly to and borrow money directly from other Funds to cover
unanticipated cash shortfalls, such as unanticipated redemptions or
trade fails.\1\ The Funds will not borrow under
[[Page 47563]]
the facility for leverage purposes and the loans' duration will be no
more than 7 days.\2\
---------------------------------------------------------------------------
\1\ Applicants request that the order apply to the applicants
and to any other registered open-end management investment company
or series thereof (each, a ``Fund'' and collectively, the ``Funds'')
for which the Adviser or any successor-in-interest thereto or an
investment adviser controlling, controlled by, or under common
control with the Adviser or any successor-in-interest thereto serves
as investment adviser (each such investment adviser, an
``Adviser''). For purposes of the requested order, ``successor-in-
interest'' is limited to any entity that results from a
reorganization into another jurisdiction or a change in the type of
a business organization. No money market funds will participate in
the proposed credit facility as either borrowers or lenders.
\2\ Any Fund, however, will be able to call a loan on one
business day's notice.
---------------------------------------------------------------------------
2. Applicants anticipate that the proposed facility would provide a
borrowing Fund with a source of liquidity at a rate lower than the bank
borrowing rate at times when the cash position of the Fund is
insufficient to meet temporary cash requirements. In addition, Funds
making short-term cash loans directly to other Funds would earn
interest at a rate higher than they otherwise could obtain from
investing their cash in repurchase agreements or certain other short
term money market instruments. Thus, applicants assert that the
facility would benefit both borrowing and lending Funds.
3. Applicants agree that any order granting the requested relief
will be subject to the terms and conditions stated in the application.
Among others, the Adviser, through a designated committee, would
administer the facility as a disinterested fiduciary as part of its
duties under the investment advisory and administrative agreements with
the Funds and would receive no additional fee as compensation for its
services in connection with the administration of the facility. The
facility would be subject to oversight and certain approvals by the
Funds' Board, including, among others, approval of the interest rate
formula and of the method for allocating loans across Funds, as well as
review of the process in place to evaluate the liquidity implications
for the Funds. A Fund's aggregate outstanding interfund loans will not
exceed 15% of its net assets, and the Fund's loans to any one Fund will
not exceed 5% of the lending Fund's net assets.\3\
---------------------------------------------------------------------------
\3\ Under certain circumstances, a borrowing Fund will be
required to pledge collateral to secure the loan.
---------------------------------------------------------------------------
4. Applicants assert that the facility does not raise the concerns
underlying section 12(d)(1) of the Act given that the Funds are part of
the same group of investment companies and there will be no duplicative
costs or fees to the Funds.\4\ Applicants also assert that the proposed
transactions do not raise the concerns underlying sections 17(a)(1),
17(a)(3), 17(d) and 21(b) of the Act as the Funds would not engage in
lending transactions that unfairly benefit insiders or are detrimental
to the Funds. Applicants state that the facility will offer both
reduced borrowing costs and enhanced returns on loaned funds to all
participating Funds and each Fund would have an equal opportunity to
borrow and lend on equal terms based on an interest rate formula that
is objective and verifiable. With respect to the relief from section
17(a)(2) of the Act, applicants note that any collateral pledged to
secure an interfund loan would be subject to the same conditions
imposed by any other lender to a Fund that imposes conditions on the
quality of or access to collateral for a borrowing (if the lender is
another Fund) or the same or better conditions (in any other
circumstance).\5\
---------------------------------------------------------------------------
\4\ Applicants state that the obligation to repay an interfund
loan could be deemed to constitute a security for the purposes of
sections 17(a)(1) and 12(d)(1) of the Act.
\5\ Applicants state that any pledge of securities to secure an
interfund loan could constitute a purchase of securities for
purposes of section 17(a)(2) of the Act.
---------------------------------------------------------------------------
5. Applicants also believe that the limited relief from section
18(f)(1) of the Act that is necessary to implement the facility
(because the lending Funds are not banks) is appropriate in light of
the conditions and safeguards described in the application and because
the Funds would remain subject to the requirement of section 18(f)(1)
that all borrowings of a Fund, including combined interfund loans and
bank borrowings, have at least 300% asset coverage.
6. 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. Rule
17d-1(b) under the Act provides that in passing upon an application
filed under the rule, the Commission will consider whether the
participation of the registered investment company in a joint
enterprise, joint arrangement or profit sharing plan on the basis
proposed is consistent with the provisions, policies and purposes of
the Act and the extent to which such participation is on a basis
different from or less advantageous than that of the other
participants.
For the Commission, by the Division of Investment Management,
under delegated authority.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-19468 Filed 9-9-19; 8:45 am]
BILLING CODE 8011-01-P
