[Federal Register Volume 59, Number 124 (Wednesday, June 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15713]
[[Page Unknown]]
[Federal Register: June 29, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. IC-20372; 812-9036]
AIM Funds Group, et al.; Notice of Application
June 23, 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: AIM Funds Group; AIM International Funds, Inc.; AIM Tax-
Exempt Funds, Inc.; A I M Advisors, Inc. (the ``Adviser''); and AIM
Distributors, Inc. (the ``Distributor'').
RELEVANT ACT SECTIONS: Order requested under section 6(c) to amend a
previous order granting relief from sections 2(a)(32), 2(a)(35), 18(f),
18(g), 18(i), 22(c), and 22(d) of the Act and rule 22c-1 thereunder.
SUMMARY OF APPLICATION: Applicants seek an order amending a prior order
that permits the issuance of multiple classes of shares and the
imposition, and under certain circumstances the waiver, of a contingent
deferred sales charge (``CDSC''). The prior order would be amended to
permit applicants to modify the circumstances in which the CDSC may be
waived, and to include additional applicants.
FILING DATE: The application was filed on June 6, 1994.
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 19, 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 Fifth Street, N.W., Washington, D.C.
20549. Applicants, 11 Greenway Plaza, Suite 1919, Houston, Texas 77046-
1173.
FOR FURTHER INFORMATION CONTACT:
Marc Duffy, Staff Attorney, at (202) 942-0565, or C. David Messman,
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. AIM Funds Group (``AFG'') is an open-end management company
consisting of nine investment portfolios. AIM International Funds, Inc.
(``AIM International'') and AIM Tax-Exempt Funds, Inc. (``AIM Tax-
Exempt'') are open-end management companies consisting of one
investment portfolio and three investment portfolios, respectively
(together with AFG, the ``Funds''). The Adviser acts as investment
adviser for each of the Funds. The Distributor acts as principal
underwriter for each of the Funds.
2. AFG previously obtained an order under section 6(c) of the Act
to permit (a) the issuance of an unlimited number of classes of shares
representing interests in the same portfolio of securities, and (b) the
imposition, and under certain circumstances the waiver or reduction, of
a CDSC on redemptions of shares (the ``Existing Order'').1
Pursuant to the Existing Order, AFG currently offers each of its
portfolios with two classes of shares, except its AIM Money Market Fund
portfolio, which offers three classes of shares.
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\1\Investment Company Act Release Nos. 19547 (June 29, 1993)
(notice) and 19599 (July 27, 1993) (order).
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3. AIM International and AIM Tax-Exempt were not parties to the
application for the Existing Order. Applicants request that the relief
granted by the Existing Order be extended to AIM International, AIM
Tax-Exempt, and all future portfolios of those investment companies.
AIM International and AIM Tax-Exempt have agreed to be subject to the
Existing Order, as amended by this application, with respect to the
Funds' creation, issuance, and sale of multiple classes of shares.
4. The Existing Order permits the waiver or reduction of the CDSC
on certain specified categories of redemptions. One such CDSC waiver
category applies to ``distributions from individual retirement
accounts, Keogh plans and custodial accounts maintained pursuant to
Internal Revenue Code (``IRC'') section 403(b)(7).'' Applicants now
seek to revise the types of retirement plans and accounts that may be
entitled to a waiver or reduction of a CDSC. As revised, the CDSC
waiver category would apply to individual retirement accounts,
custodial accounts maintained pursuant to IRC section 403(b), deferred
compensation plans qualified under IRC section 457 and plans qualified
under IRC section 401 (collectively ``Retirement Plans'').
5. Applicants also seek to revise the circumstances in which
redemptions by Retirement Plans may be entitled to a waiver or
reduction of a CDSC. Currently, the CDSC may be waived or reduced for
any redemption in connection with a tax-free lump sum or other
distribution to a participant or beneficiary, other than tax-free
rollovers or transfers of assets, provided that the CDSC waiver or
reduction would apply only to that portion of such redemptions which
does not exceed, on an annual basis, 12% of such participant's or
beneficiary's account value. Applicants now also wish to permit such a
waiver or reduction of the CDSC for redemptions which result from
required minimum distributions to participants or beneficiaries of
Retirement Plans who are age 70\1/2\ or older.
6. Applicants agree that they will be subject to all of the
conditions contained in the application for the Existing Order.
Applicants' Legal Analysis
1. Applicants seek to amend the Existing Order with respect to the
relief requested from sections 2(a)(32), 2(a)(35), 22(c), and 22(d) of
the Act and rule 22c-1 thereunder to permit applicants to add
additional investment company applicants and to modify the
circumstances in which the CDSC may be waived.
2. Applicants wish to encourage greater investments by Retirement
Plans in the Funds by permitting the waiver of the CDSC for most
distributions that are permitted to be made without penalty pursuant to
the IRC. Applicants believe such increased investments would be in the
best interest of shareholders and that the imposition of a CDSC in
these circumstances likely would deter such investments.
3. Applicants believe that the requested exemptive relief 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.
For the SEC, by the Division of Investment Management, pursuant
to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-15713 Filed 6-28-94; 8:45 am]
BILLING CODE 8010-01-M