Invesco Capital Management LLC, et al., 5302-5303 [2021-00957]
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5302
Federal Register / Vol. 86, No. 11 / Tuesday, January 19, 2021 / Notices
10. Each Fund will adopt and
implement written policies and
procedures that govern the construction
of Creation Baskets, as required under
rule 6c–11(c)(3) under the Act, as
amended, except that for purposes of
this condition, only Creation Baskets
different from the Fund’s Proxy
Portfolio will be treated as a ‘‘Custom
Basket’’. The Fund’s basket policies and
procedures will be covered by the
Fund’s compliance program and other
requirements under rule 38a–1 under
the Act, as amended.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
J. Matthew DeLesDernier,
Assistant Secretary.
ADDRESSES:
The Commission: Secretarys-Office@
sec.gov.
Applicants: anna.paglia@
invesco.com, paulita.pike@
ropesgray.com and edward.baer@
ropesgray.com.
[FR Doc. 2021–00961 Filed 1–15–21; 8:45 am]
FOR FURTHER INFORMATION CONTACT:
BILLING CODE 8011–01–P
Marc Mehrespand, Senior Counsel;
Trace Rakestraw, Branch Chief, at (202)
551–6825 (Division of Investment
Management, Chief Counsel’s Office).
SECURITIES AND EXCHANGE
COMMISSION
The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
website by searching for the file
number, or for an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
SUPPLEMENTARY INFORMATION:
[Investment Company Act Release No.
34170; 812–15182]
Invesco Capital Management LLC, et
al.
January 12, 2021.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application to
amend a prior order for exemptive
relief.
AGENCY:
I. Introduction
Applicants
request an order (‘‘Amended Order’’)
that would amend a prior order to
permit the Funds, as defined below, to
use Creation Baskets (as defined below)
that include instruments that are not
included, or are included with different
weightings, in the Fund’s Substitute
Basket (as defined below).
APPLICANTS: Invesco Capital
Management LLC, Invesco Actively
Managed Exchange-Traded Fund Trust
and Invesco Distributors, Inc.
FILING DATES: The application was filed
on December 1, 2020, and amended on
December 7, 2020.
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 emailing the
Commission’s Secretary at SecretarysOffice@sec.gov and serving Applicants
with a copy of the request by email.
Hearing requests should be received by
the Commission by 5:30 p.m. on
February 8, 2021 and should be
accompanied by proof of service on the
Applicants, in the form of an affidavit,
or, for lawyers, a certificate of service.
SUMMARY OF APPLICATION:
khammond on DSKJM1Z7X2PROD with NOTICES
Pursuant to rule 0–5 under the
Investment Company Act of 1940
(‘‘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
emailing to the Commission’s Secretary
at Secretarys-Office@sec.gov.
VerDate Sep<11>2014
19:19 Jan 17, 2021
Jkt 253001
1. On December 2, 2020, the
Commission issued an order (‘‘Prior
Order’’) 1 under section 6(c) of 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. The Prior Order
permitted Applicants to introduce a
novel type of actively-managed
exchange-traded fund (‘‘ETF’’) that is
not required to disclose its portfolio
holdings on a daily basis (each, a
‘‘Fund’’). Rather, pursuant to the Prior
Order, each Business Day 2 a Fund
publishes a basket of securities and cash
that, while different from the Fund’s
portfolio, is designed to closely track its
1 See Invesco Capital Management LLC, et al.,
Investment Company Act Release No. 34087 (Nov.
6, 2020) (notice) and Investment Company Act
Release No. 34127 (Dec. 2, 2020) (order). Except as
specifically noted in the application, all
representations and conditions contained in the
application previously submitted with the
Commission (File No. 812–15070), as amended and
restated, and filed with the Commission on
November 6, 2020 (the ‘‘Prior Application’’) remain
applicable to the operation of the Funds and will
apply to any Funds relying on the Amended Order.
2 All capitalized terms not otherwise defined in
this notice have the meanings ascribed to them in
the Prior Application.
PO 00000
Frm 00173
Fmt 4703
Sfmt 4703
daily performance (the ‘‘Substitute
Basket’’).
2. Pursuant to the Prior Order, a Fund
sells and redeems its shares (‘‘Shares’’)
only in Creation Units and generally on
an in-kind basis. Purchasers are
required to purchase Creation Units by
making a deposit of Deposit Instruments
and shareholders redeeming their
Shares receive a transfer of Redemption
Instruments.3 Under the Prior Order, the
names and quantities of the instruments
that constitute the Deposit Instruments
and the Redemption Instruments for a
Fund (collectively, the ‘‘Creation
Basket’’) are the same as the Fund’s
Substitute Basket, except to the extent
purchases and redemptions are made
entirely or in part on a cash basis.
3. Applicants now seek to amend the
Prior Order to, in effect, give the Funds
the same flexibility with respect to
Creation Basket composition as afforded
to ETFs relying on rule 6c–11.4 More
specifically, Applicants have requested
that the Funds be allowed to use
Creation Baskets that include
instruments that are not included, or are
included with different weightings, in
the Fund’s Substitute Basket.
II. The Application
A. Applicants’ Proposal
4. Upon amending the Prior Order,
the names and quantities of the
instruments that may constitute a
Creation Basket will generally be the
same as the Fund’s Substitute Basket,
but a Fund may accept Creation Baskets
that differ from the Substitute Basket.
Each Business Day, before the open of
trading on the Exchange where a Fund
is listed, the Fund will publish on its
website the composition of any Creation
Basket exchanged with an authorized
participant on the previous Business
Day that differed from such Business
Day’s Substitute Basket other than with
respect to cash.
5. Applicants represent that, for
portfolio management or other reasons,
the Funds may determine that it is
desirable to use Creation Baskets that
differ from the Substitute Basket
(beyond cash substitutions). For
example, a Fund may want to use a
Creation Basket that contains
instruments that are not included in a
Fund’s Substitute Basket if the Adviser
3 Deposit Instruments and Redemption
Instruments may include cash and/or securities.
4 The Funds are not be able to operate in reliance
on rule 6c–11 because they do not disclose their
portfolio holdings on a daily basis as required by
the rule. See rule 6c–11(c)(1)(i) (requiring an ETF
to disclose prominently on its website, publicly
available and free of charge, the portfolio holdings
that will form the basis for each calculation of NAV
per share).
E:\FR\FM\19JAN1.SGM
19JAN1
Federal Register / Vol. 86, No. 11 / Tuesday, January 19, 2021 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
or Sub-Adviser seeks to add an
instrument to the Fund’s then-current
portfolio (‘‘Actual Portfolio’’) without
incurring transaction costs associated
with the purchase of the instrument for
cash. Similarly, if the Adviser or SubAdviser decides to sell an instrument
from a Fund’s Actual Portfolio, the
instrument may be included in a
Creation Basket with the expectation
that the Fund will deliver it in-kind
during a redemption transaction.
6. The Funds will use the requested
basket flexibility only in circumstances
under which Applicants believe there
will be no harm to the Funds or their
shareholders, and in order to benefit the
Funds and their shareholders by
reducing costs, increasing efficiency and
improving trading.
7. Pursuant to condition 10 herein,
each Fund will adopt and implement
written policies and procedures
regarding the construction of its
Creation Baskets in accordance with
rule 6c–11 under the Act. For purposes
of the requirement to comply with the
policies and procedures provision in
rule 6c–11, only Creation Baskets that
differ from a Fund’s Substitute Basket
will be treated as a ‘‘custom basket’’
under rule 6c–11(c)(3).
8. Furthermore, pursuant to condition
9 herein, each Fund will comply with
the recordkeeping requirements of rule
6c–11.5 For purposes of the requirement
to comply with the recordkeeping
provision in rule 6c–11, only Creation
Baskets different from a Fund’s
Substitute Basket will be treated as a
‘‘custom basket’’ under rule 6c–
11(d)(2)(ii).
B. Considerations Relating to the
Requested Relief
9. Applicants represent that the
ability to utilize a Creation Basket that
includes instruments that are not
included, or are included with different
weightings, in a Fund’s Substitute
Basket, or are included in different
weightings, does not raise any new
policy concerns about reverse
engineering of a Fund’s portfolio, selfdealing or overreaching, or selective
disclosure beyond those concerns
addressed in connection with the Prior
Order.
10. Reverse Engineering. Applicants
acknowledge that, by using a Creation
Basket that includes instruments that
are not included in a Fund’s Substitute
Basket, or are included in different
percentages, and by publishing such
5 Pursuant to condition 9, each Fund will also
maintain and preserve a copy of the Substitute
Basket published on the Fund’s website for each
Business Day and a copy of each Creation Basket
made available.
VerDate Sep<11>2014
19:19 Jan 17, 2021
Jkt 253001
Creation Basket on its website, the Fund
would provide market participants with
additional information about which
instruments it adds or removes from the
Fund’s Actual Portfolio. However,
Applicants represent that they will
operate the Funds in a manner designed
to minimize the risk of reverse
engineering and, for the reasons set
forth in the application, believe
successful front-running or free-riding is
highly unlikely.
11. Self-Dealing or Overreaching.
Applicants state that authorized
participants and other market
participants will not have the ability to
disadvantage the Funds by
manipulating or influencing the
composition of Creation Baskets,
including those that differ from the
Substitute Basket. Like the basket and
custom basket policies and procedures
required of ETFs by rule 6c–11, the
Funds will adopt and implement
written policies and procedures that
govern the construction of Creation
Baskets and the process that will be
used for the acceptance of Creation
Baskets to safeguard the best interests of
the Funds and their shareholders.6
12. Selective Disclosure. The Funds
and each person acting on behalf of the
Funds will continue to be required to
comply with Regulation Fair Disclosure
as if it applied to them (except that the
exemptions provided in rule
100(b)(2)(iii) therein shall not apply).
Applicants believe that the new
Creation Basket flexibility being sought
by the Applicants does not raise any
new concerns about selective disclosure
of non-public material information.
First, a Fund’s use of, or conversations
with authorized participants about,
Creation Baskets that would result in
such disclosure would effectively be
limited by the Funds’ obligation to
comply with Regulation Fair Disclosure.
Second, as noted above, each Business
Day, before the open of trading on the
Exchange where a Fund is listed, the
Fund will publish on its website the
composition of any basket accepted by
the Fund on the previous Business Day
that differed from such Business Day’s
Substitute Basket other than with
respect to cash.
III. Requested Exemptive Relief
For the reasons stated above,
Applicants believe that the Prior Order,
as amended, continues to meet the
5303
relevant standards for relief pursuant to
section 6(c) of 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, and 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.
IV. Applicants’ Conditions
Applicants agree that the Amended
Order granting the requested relief will
be subject to all of the conditions in the
Prior Order, except that condition 9 of
the Prior Order is deleted in its entirety
and replaced with the conditions 9–10
as follows:
9. Each Fund will comply with the
recordkeeping requirements of rule 6c–
11 under the Act, as amended, except
that for purposes of this condition, only
Creation Baskets different from the
Fund’s Substitute Basket will be treated
as a ‘‘custom basket’’ under rule 6c–
11(d)(2)(ii). In addition, each Fund will
maintain and preserve, for a period of
not less than five years, in an easily
accessible place, (i) a copy of the
Substitute Basket published on the
Fund’s website for each Business Day;
and (ii) a copy of each Creation Basket
made available.
10. Each Fund will adopt and
implement written policies and
procedures that govern the construction
of Creation Baskets, as required under
rule 6c–11(c)(3) under the Act, as
amended, except that for purposes of
this condition, only Creation Baskets
different from the Fund’s Substitute
Basket will be treated as a ‘‘Custom
Basket’’. The Fund’s basket policies and
procedures will be covered by the
Fund’s compliance program and other
requirements under rule 38a–1 under
the Act, as amended.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–00957 Filed 1–15–21; 8:45 am]
BILLING CODE 8011–01–P
SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA–2016–0039]
Use of Electronic Payroll Data to
Improve Program Administration
Social Security Administration.
Notice and request for
comments.
AGENCY:
ACTION:
6 See Exchange-Traded Funds, Investment
Company Act Release No. 33646 (Sept. 25, 2019)
(‘‘ETF Adopting Release’’), at 80–94 (discussion of
rule 6c–11 requirement for ETF policies and
procedures concerning basket construction and
acceptance and heightened policies and procedures
for custom baskets).
PO 00000
Frm 00174
Fmt 4703
Sfmt 4703
This is advance notification to
the public regarding the implementation
of an information exchange between the
Social Security Administration (SSA)
SUMMARY:
E:\FR\FM\19JAN1.SGM
19JAN1
]]>Agencies
[Federal Register Volume 86, Number 11 (Tuesday, January 19, 2021)]
[Notices]
[Pages 5302-5303]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00957]
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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 34170; 812-15182]
Invesco Capital Management LLC, et al.
January 12, 2021.
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Notice of an application to amend a prior order for exemptive
relief.
-----------------------------------------------------------------------
Summary of Application: Applicants request an order (``Amended
Order'') that would amend a prior order to permit the Funds, as defined
below, to use Creation Baskets (as defined below) that include
instruments that are not included, or are included with different
weightings, in the Fund's Substitute Basket (as defined below).
Applicants: Invesco Capital Management LLC, Invesco Actively Managed
Exchange-Traded Fund Trust and Invesco Distributors, Inc.
Filing Dates: The application was filed on December 1, 2020, and
amended on December 7, 2020.
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 emailing the Commission's
Secretary at [email protected] and serving Applicants with a
copy of the request by email. Hearing requests should be received by
the Commission by 5:30 p.m. on February 8, 2021 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 Investment Company Act of 1940 (``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 emailing to the
Commission's Secretary at [email protected].
ADDRESSES:
The Commission: [email protected].
Applicants: [email protected], [email protected] and
[email protected].
FOR FURTHER INFORMATION CONTACT: Marc Mehrespand, Senior Counsel; Trace
Rakestraw, Branch Chief, at (202) 551-6825 (Division of Investment
Management, Chief Counsel's Office).
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's website by searching for the file number, or for an
applicant using the Company name box, at https://www.sec.gov/search/search.htm or by calling (202) 551-8090.
I. Introduction
1. On December 2, 2020, the Commission issued an order (``Prior
Order'') \1\ under section 6(c) of 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. The Prior
Order permitted Applicants to introduce a novel type of actively-
managed exchange-traded fund (``ETF'') that is not required to disclose
its portfolio holdings on a daily basis (each, a ``Fund''). Rather,
pursuant to the Prior Order, each Business Day \2\ a Fund publishes a
basket of securities and cash that, while different from the Fund's
portfolio, is designed to closely track its daily performance (the
``Substitute Basket'').
---------------------------------------------------------------------------
\1\ See Invesco Capital Management LLC, et al., Investment
Company Act Release No. 34087 (Nov. 6, 2020) (notice) and Investment
Company Act Release No. 34127 (Dec. 2, 2020) (order). Except as
specifically noted in the application, all representations and
conditions contained in the application previously submitted with
the Commission (File No. 812-15070), as amended and restated, and
filed with the Commission on November 6, 2020 (the ``Prior
Application'') remain applicable to the operation of the Funds and
will apply to any Funds relying on the Amended Order.
\2\ All capitalized terms not otherwise defined in this notice
have the meanings ascribed to them in the Prior Application.
---------------------------------------------------------------------------
2. Pursuant to the Prior Order, a Fund sells and redeems its shares
(``Shares'') only in Creation Units and generally on an in-kind basis.
Purchasers are required to purchase Creation Units by making a deposit
of Deposit Instruments and shareholders redeeming their Shares receive
a transfer of Redemption Instruments.\3\ Under the Prior Order, the
names and quantities of the instruments that constitute the Deposit
Instruments and the Redemption Instruments for a Fund (collectively,
the ``Creation Basket'') are the same as the Fund's Substitute Basket,
except to the extent purchases and redemptions are made entirely or in
part on a cash basis.
---------------------------------------------------------------------------
\3\ Deposit Instruments and Redemption Instruments may include
cash and/or securities.
---------------------------------------------------------------------------
3. Applicants now seek to amend the Prior Order to, in effect, give
the Funds the same flexibility with respect to Creation Basket
composition as afforded to ETFs relying on rule 6c-11.\4\ More
specifically, Applicants have requested that the Funds be allowed to
use Creation Baskets that include instruments that are not included, or
are included with different weightings, in the Fund's Substitute
Basket.
---------------------------------------------------------------------------
\4\ The Funds are not be able to operate in reliance on rule 6c-
11 because they do not disclose their portfolio holdings on a daily
basis as required by the rule. See rule 6c-11(c)(1)(i) (requiring an
ETF to disclose prominently on its website, publicly available and
free of charge, the portfolio holdings that will form the basis for
each calculation of NAV per share).
---------------------------------------------------------------------------
II. The Application
A. Applicants' Proposal
4. Upon amending the Prior Order, the names and quantities of the
instruments that may constitute a Creation Basket will generally be the
same as the Fund's Substitute Basket, but a Fund may accept Creation
Baskets that differ from the Substitute Basket. Each Business Day,
before the open of trading on the Exchange where a Fund is listed, the
Fund will publish on its website the composition of any Creation Basket
exchanged with an authorized participant on the previous Business Day
that differed from such Business Day's Substitute Basket other than
with respect to cash.
5. Applicants represent that, for portfolio management or other
reasons, the Funds may determine that it is desirable to use Creation
Baskets that differ from the Substitute Basket (beyond cash
substitutions). For example, a Fund may want to use a Creation Basket
that contains instruments that are not included in a Fund's Substitute
Basket if the Adviser
[[Page 5303]]
or Sub-Adviser seeks to add an instrument to the Fund's then-current
portfolio (``Actual Portfolio'') without incurring transaction costs
associated with the purchase of the instrument for cash. Similarly, if
the Adviser or Sub-Adviser decides to sell an instrument from a Fund's
Actual Portfolio, the instrument may be included in a Creation Basket
with the expectation that the Fund will deliver it in-kind during a
redemption transaction.
6. The Funds will use the requested basket flexibility only in
circumstances under which Applicants believe there will be no harm to
the Funds or their shareholders, and in order to benefit the Funds and
their shareholders by reducing costs, increasing efficiency and
improving trading.
7. Pursuant to condition 10 herein, each Fund will adopt and
implement written policies and procedures regarding the construction of
its Creation Baskets in accordance with rule 6c-11 under the Act. For
purposes of the requirement to comply with the policies and procedures
provision in rule 6c-11, only Creation Baskets that differ from a
Fund's Substitute Basket will be treated as a ``custom basket'' under
rule 6c-11(c)(3).
8. Furthermore, pursuant to condition 9 herein, each Fund will
comply with the recordkeeping requirements of rule 6c-11.\5\ For
purposes of the requirement to comply with the recordkeeping provision
in rule 6c-11, only Creation Baskets different from a Fund's Substitute
Basket will be treated as a ``custom basket'' under rule 6c-
11(d)(2)(ii).
---------------------------------------------------------------------------
\5\ Pursuant to condition 9, each Fund will also maintain and
preserve a copy of the Substitute Basket published on the Fund's
website for each Business Day and a copy of each Creation Basket
made available.
---------------------------------------------------------------------------
B. Considerations Relating to the Requested Relief
9. Applicants represent that the ability to utilize a Creation
Basket that includes instruments that are not included, or are included
with different weightings, in a Fund's Substitute Basket, or are
included in different weightings, does not raise any new policy
concerns about reverse engineering of a Fund's portfolio, self-dealing
or overreaching, or selective disclosure beyond those concerns
addressed in connection with the Prior Order.
10. Reverse Engineering. Applicants acknowledge that, by using a
Creation Basket that includes instruments that are not included in a
Fund's Substitute Basket, or are included in different percentages, and
by publishing such Creation Basket on its website, the Fund would
provide market participants with additional information about which
instruments it adds or removes from the Fund's Actual Portfolio.
However, Applicants represent that they will operate the Funds in a
manner designed to minimize the risk of reverse engineering and, for
the reasons set forth in the application, believe successful front-
running or free-riding is highly unlikely.
11. Self-Dealing or Overreaching. Applicants state that authorized
participants and other market participants will not have the ability to
disadvantage the Funds by manipulating or influencing the composition
of Creation Baskets, including those that differ from the Substitute
Basket. Like the basket and custom basket policies and procedures
required of ETFs by rule 6c-11, the Funds will adopt and implement
written policies and procedures that govern the construction of
Creation Baskets and the process that will be used for the acceptance
of Creation Baskets to safeguard the best interests of the Funds and
their shareholders.\6\
---------------------------------------------------------------------------
\6\ See Exchange-Traded Funds, Investment Company Act Release
No. 33646 (Sept. 25, 2019) (``ETF Adopting Release''), at 80-94
(discussion of rule 6c-11 requirement for ETF policies and
procedures concerning basket construction and acceptance and
heightened policies and procedures for custom baskets).
---------------------------------------------------------------------------
12. Selective Disclosure. The Funds and each person acting on
behalf of the Funds will continue to be required to comply with
Regulation Fair Disclosure as if it applied to them (except that the
exemptions provided in rule 100(b)(2)(iii) therein shall not apply).
Applicants believe that the new Creation Basket flexibility being
sought by the Applicants does not raise any new concerns about
selective disclosure of non-public material information. First, a
Fund's use of, or conversations with authorized participants about,
Creation Baskets that would result in such disclosure would effectively
be limited by the Funds' obligation to comply with Regulation Fair
Disclosure. Second, as noted above, each Business Day, before the open
of trading on the Exchange where a Fund is listed, the Fund will
publish on its website the composition of any basket accepted by the
Fund on the previous Business Day that differed from such Business
Day's Substitute Basket other than with respect to cash.
III. Requested Exemptive Relief
For the reasons stated above, Applicants believe that the Prior
Order, as amended, continues to meet the relevant standards for relief
pursuant to section 6(c) of 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, and 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.
IV. Applicants' Conditions
Applicants agree that the Amended Order granting the requested
relief will be subject to all of the conditions in the Prior Order,
except that condition 9 of the Prior Order is deleted in its entirety
and replaced with the conditions 9-10 as follows:
9. Each Fund will comply with the recordkeeping requirements of
rule 6c-11 under the Act, as amended, except that for purposes of this
condition, only Creation Baskets different from the Fund's Substitute
Basket will be treated as a ``custom basket'' under rule 6c-
11(d)(2)(ii). In addition, each Fund will maintain and preserve, for a
period of not less than five years, in an easily accessible place, (i)
a copy of the Substitute Basket published on the Fund's website for
each Business Day; and (ii) a copy of each Creation Basket made
available.
10. Each Fund will adopt and implement written policies and
procedures that govern the construction of Creation Baskets, as
required under rule 6c-11(c)(3) under the Act, as amended, except that
for purposes of this condition, only Creation Baskets different from
the Fund's Substitute Basket will be treated as a ``Custom Basket''.
The Fund's basket policies and procedures will be covered by the Fund's
compliance program and other requirements under rule 38a-1 under the
Act, as amended.
For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-00957 Filed 1-15-21; 8:45 am]
BILLING CODE 8011-01-P
