[Federal Register Volume 59, Number 120 (Thursday, June 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15229]
[[Page Unknown]]
[Federal Register: June 23, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Rel. No. IC-20359; 812-8918]
The Govett Funds, Inc., et al.; Notice of Application
June 16, 1944.
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 Govett Funds, Inc. (the ``Company''), on behalf of
itself and its portfolio series (namely, Govett International Equity
Fund, Govett Emerging Markets Fund, Govett Smaller Companies Fund,
Govett Pacific Strategy Fund, Govett Global Government Income Fund,
Govett Developing Markets Bond Fund, and Govett Latin America Fund,
including any open-end investment company that becomes part of the same
``group of investment companies,'' as that term is defined in rule 11a-
3 under the Act (each a ``Fund,'' and collectively, the ``Funds''));
John Govett & Co. Limited (the ``Manager''), Govett Asset Management
Company (the ``Subadviser'') and Govett Financial Services Limited (the
``Distributor'').
RELEVANT ACT SECTIONS: Exemption requested under section 6(c) of the
Act from the provisions of 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 order that permits the
imposition and, under certain circumstances, waiver of a contingent
deferred sales charge (``CDSC'') on certain redemptions.
FILING DATE: The application was filed on April 4, 1994. In letters
dated June 16, 1994, applicants' counsel has stated that an amendment,
the substance of which is incorporated herein, will be filed 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 July 11, 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 who wish to be
notified of a hearing may request notification by writing to the SEC's
Secretary.
ADDRESSES: Secretary, SEC, 450 5th Street, NW., Washington, DC 20549.
Applicants, c/o Mitchell E. Nichter, Esq., Heller, Ehrman, White &
McAuliffe, 333 Bush Street, San Francisco, CA 94104.
FOR FURTHER INFORMATION CONTACT:
Fran M. Pollack-Matz, Senior Counsel, at (202) 942-0570 or Barry D.
Miller, Senior Special Counsel, 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 Company is an open-end management investment company
registered under the Act. The Manager serves as the investment manager
of each Fund. The Subadviser provides investment advisory services to
the Manager with respect to one of the Funds. The Distributor acts as
the distributor and principal underwriter of shares of the Funds.
2. The Funds currently offer their shares for sale at net asset
value plus a front-end sales charge. The Funds have eliminated the
front-end sales charge in connection with sales to investors of $1
million or more in compliance with rule 22d-1 under the Act. These
purchases are referred to as ``Covered Purchases.''
3. The Funds propose to impose a CDSC on the proceeds of certain
redemptions of shares purchased in Covered Purchases in connection with
redemption transactions within one year following share purchases (the
``CDSC Period''). The amount of the CDSC will be calculated as the
lesser of the amount that represents a specified percentage of the net
asset value of the shares at the time of purchase or at the time of
redemption. The CDSC will not be imposed on any redemption of shares
that were held for longer than the CDSC Period, or on any redemption of
shares derived from reinvestment of distributions. Furthermore, no CDSC
will be imposed on an amount that represents an increase in value of
the shareholder's account resulting from capital appreciation above the
amount paid for the shares purchased during the CDSC Period. In
determining the applicability of the CDSC, it will be assumed that a
redemption is made first of shares representing capital appreciation,
next of shares representing reinvestment of dividends and capital gain
distributions, and finally of shares held by the shareholder for the
longest period of time. No CDSC will be imposed on shares issued prior
to the effective date of the requested order.
4. Applicants intend to waive the CDSC in some or all of the
following circumstances: (a) following the death or disability, as
defined in section 72(m)(7) of the Code, of a shareholder if redemption
is made within one year of death or disability of a shareholder; and
(b) in connection with total or partial redemptions of shares to the
extent that the redemption: (i) Represents a minimum required
distribution from an individual retirement account, Keogh plan or
Section 403(b) plan or custodian account to a shareholder who has
attained the age of 70\1/2\, (ii) represents a distribution following
retirement from a tax-exempt employer-sponsored retirement plan, (iii)
results from a tax-free return of an excess contribution pursuant to
Section 408(d)(4) or (5) of the Internal Revenue Code of 1986, as
amended, or (iv) represents a distribution from a tax-exempt employer-
sponsored retirement plan which is permitted to be made without penalty
pursuant to the Internal Revenue Code of 1986, as amended, other than
tax-free rollovers or transfers of assets, the proceeds of which are
reinvested in Fund shares. The Funds also may waive the CDSC with
respect to investors that are tax-exempt employee benefit plans, in
connection with redemptions of shares resulting from the enactment of
any law or the promulgation by the Internal Revenue Service or the
Department of Labor of any regulation pursuant to which continuation of
the investment in such shares would be improper. This proposed waiver
would be subject to the applicants' rights to require an opinion of
counsel to the effect that the continuation of such an investment would
be improper.
5. The Distributor may provide a pro rata refund out of its own
assets of any CDSC paid in connection with redemptions of shares, the
proceeds of which are reinvested within 365 days after such redemption
in shares of the same Fund.
Applicants' Condition
The applicants agree that the order of the SEC granting the
requested relief shall be subject to the following condition: the
applicants will comply with the provisions of proposed rule 6c-10 under
the Act, Investment Company Act Rel. 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,
under delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-15229 Filed 6-22-94; 8:45 am]
BILLING CODE 8010-01-M