[Federal Register Volume 59, Number 104 (Wednesday, June 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13214]


[[Page Unknown]]

[Federal Register: June 1, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Rel. No. IC-20316; 812-8968]

 

The Alger Fund and Fred Alger & Company, Inc.; Application

May 25, 1994.
AGENCY: Securities and Exchange Commission (``SEC'').

ACTION: Notice of Application for Exemption under the Investment 
Company Act of 1940 (the ``Act'').

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APPLICANTS: The Alger Fund (the ``Fund'') and Fred Alger & Company, 
Inc. (``Alger Inc.'').

RELEVANT ACT SECTIONS: Exemption requested under section 6(c) of the 
Act from sections 2(a) (32), 2(a)(35), 22(c), and 22(d) of the Act and 
rule 22c-1 thereunder.

SUMMARY OF APPLICATION : Applicants seek an amended order to permit 
applicants to expand the circumstances under which the Alger Fund may 
waive its contingent deferred sales charge (``CDSC'').

FILING DATE: The application was filed on April 29, 1994. Applicants 
have agreed to file an additional amendment, the substance of which is 
incorporated herein, during the notice period.

HEARING OR NOTIFICATION OF HEARING: An order granting the application 
will be issued unless the SEC orders a hearing. Interested persons may 
request a hearing by writing to the SEC's Secretary and serving 
applicants with a copy of the request, personally or by mail. Hearing 
requests should be received by the SEC by 5:30 p.m. on June 20, 1994, 
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 may request 
notification of a hearing by writing to the SEC's Secretary.

ADDRESSES: Secretary, SEC, 450 5th Street NW., Washington, DC 20549. 
Applicants, 30 Montgomery Street, Jersey City, New Jersey 07302.

FOR FURTHER INFORMATION CONTACT:
Elaine M. Boggs, Staff Attorney, at (202) 942-0572, or Robert A. 
Robertson, Branch Chief, at (202) 942-0564 (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 
SEC's Public Reference Branch.

Applicants' Representations

    1. The Fund is an open-end management investment company composed 
of seven series. Fred Alger Management, Inc. serves as the investment 
adviser to each series, and Alger Inc. serves as their distributor. 
Fred Alger Management, Inc. is a wholly-owned subsidiary of Alger Inc., 
which in turn is a wholly-owned subsidiary of Alger Associates, Inc.
    2. Applicants currently assess and, under certain circumstances, 
waive a CDSC on redemptions of shares pursuant to an existing order 
(the ``Existing Order'').\1\ In accordance with the Existing Order, 
applicants may waive the CDSC on redemptions of shares effected: (a) 
Following death or disability; (b) in connection with certain 
redemptions from individual retirement accounts (``IRAs'') or other 
qualified retirement plans; (c) pursuant to the Fund's automatic cash 
withdrawal plan; (d) by (i) employees of Alger Associates, Inc. and its 
subsidiaries, (ii) IRAs, Keogh plans, and employee benefit plans for 
those employees, and (iii) spouses, children, siblings, and parents of 
those employees, and trusts of which those individuals are 
beneficiaries, as long as orders for the Fund's shares on behalf of 
those individuals and trusts are placed by the employees; (e) by (i) 
accounts managed by investment advisory subsidiaries of Alger 
Associates, Inc. that are registered under the Investment Advisers Act 
of 1940, (ii) employees, participants, and beneficiaries of those 
accounts, (iii) IRAs, Keogh plans, and employee benefit plans for those 
employees, participants, and beneficiaries, and (iv) spouses and minor 
children of those employees, participants, and beneficiaries as long s 
orders for the Fund's shares are placed by the employees, participants, 
and beneficiaries; (f) by directors or trustees of any investment 
company for which Alger Associates, Inc. or any of its subsidiaries 
serves as investment adviser or distributor; (g) by an investment 
company registered under the Act in connection with the combination of 
the investment company with the Fund by merger, acquisition of assets, 
or by any other transaction; (h) pursuant to the Fund's right to 
liquidate involuntarily a shareholder's account with a current value of 
less than $250; (i) by defined contribution plans with respect to which 
Fred Alger Management, Inc. or an affiliate provides certain non-
fiduciary services; (j) by registered investment advisers, banks, trust 
companies, and other financial institutions exercising discretionary 
authority with respect to the money invested in Fund shares; and (k) by 
registered investment advisers for their own accounts.
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    \1\Investment Company Act Release Nos. 20030 (Jan. 21, 1994) 
(notice), and 20078 (Feb. 16, 1994).
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    3. Applicants seek to amend the Existing Order to add two waiver 
categories and to expand one existing category. Applicants propose to 
waive or reduce the CDSC for redemptions of shares (a) purchased by a 
broker-dealer, bank, or other financial institution that purchases 
shares for its customers (``Processing Organization'') as shareholder 
of record on behalf of the following categories of customers: (i) 
Investment advisers or financial planners trading for their own 
accounts or the accounts of their clients and who charge a management, 
consulting, or other fee for their services; and clients of such 
investment advisers or financial planners trading for their own 
accounts if the accounts are linked to the master account of the 
investment adviser or financial planning on the books and records of 
the Processing Organization, and (ii) retirement and deferred 
compensation plans and trusts used to fund those plans and (b) 
purchased by registered representatives of broker-dealers which have 
entered into dealer agreements with Alger Inc., and their spouses, 
children, siblings and parents.
    4. The Existing Order currently permits a waiver of the CDSC on 
redemptions of shares of defined contribution plans for which Alger 
Management or an affiliate provides services. Applicants propose to 
expand this category to permit a waiver of the CDSC on redemptions of 
shares held through any defined contribution plan.
    5. Applicants request that relief be extended to any future series 
of the Fund and any registered investment company for which Alger Inc. 
serves in the future as principal underwriter or for which any person 
controlling, controlled by, or under common control with Alger Inc. 
(within the meaning of section 2(a)(9) of the Act) may in the future 
serve as principal underwriter.

Applicants' Legal Analysis

    1. Applicants request an exemption from sections 2(a)(32), 
2(a)(35), 22(c), and 22(d) of the Act and rule 22c-1 thereunder to 
permit the Funds to waive or reduce the CDSC as described above. 
Applicants submit that the requested exemption, as required by the 
standards for an exemption under section 6(c) of the Act, is in the 
public interest, consistent with the protection of investors, and 
consistent with the purposes fairly intended by the policy and 
provisions of the Act.

Applicants' Condition

    Applicants agree that the order of the Commission granting the 
requested relief will be subject to the following condition:
    1. Applicants will comply with the provisions of proposed rule 6c-
10 under the Act, Investment Company Act Release No. 16619 (Nov. 2, 
1988), as such rule is currently proposed and as it may be reproposed, 
adopted or amended.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-13214 Filed 5-31-94; 8:45 am]
BILLING CODE 8010-01-M