[Federal Register Volume 59, Number 162 (Tuesday, August 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20625]


[[Page Unknown]]

[Federal Register: August 23, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 20488; 811-5997]

 

World Appreciation Fund, Inc.; Notice of Application

August 17, 1994.
AGENCY: Securities and Exchange Commission (``SEC'').

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

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APPLICANT: World Appreciation Fund, Inc.

RELEVANT ACT SECTION: Order requested under section 8(f).

SUMMARY OF APPLICATION: Applicant seeks an order declaring that it has 
ceased to be an investment company.

FILING DATES: The application was filed on April 29, 1994, and amended 
on July 20, 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 
applicant with a copy of the request, personally or by mail. Hearing 
requests should be received by the SEC by 5:30 p.m. on September 12, 
1994, and should be accompanied by proof of service on applicant, 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. Applicant, 333 South Hope Street, 52nd Floor, Los Angeles, 
California 90071.

FOR FURTHER INFORMATION CONTACT:
H.R. Hallock, Jr., Special Counsel, at (202) 942-0564, 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 from 
the SEC's Public Reference Branch.

Applicant's Representations

    1. Applicant, a Maryland corporation, registered under the Act on 
January 25, 1990, as an open-end management investment company and 
filed a registration statement under the Securities Act of 1933. The 
registration statement was declared effective on July 26, 1990, and 
applicant commenced an initial public offering of its securities on 
August 3, 1990. Capital International, Inc. (the ``Adviser'') is 
applicant's investment adviser.
    2. Applicant was organized in response to the request of a Dutch 
institutional client of the Adviser. This Dutch institutional client (a 
related Dutch client also became a shareholder later), another U.S. 
institutional client of the Adviser (representing a few institutional 
accounts), and the Adviser were the sole shareholders of applicant from 
inception. Each of the two institutional client groups had a 
representative on applicant's board of directors who served as the 
applicant's two independent directors. In February 1994, the 
institutional shareholders, through their board representatives, 
notified the Adviser and the other members of applicant's board that 
they likely would redeem their shares because of applicant's small 
size, the lack of interest from additional investors, and inadequate 
investment results.
    3. On April 11, 1994, applicant's board of directors unanimously 
resolved by written consent to (i) cease operations, (ii) authorize the 
filing of an application with the SEC under section 8(f) for an order 
declaring that applicant has ceased to be an investment company, and 
(iii) authorize the filing of Articles of Dissolution with the Maryland 
Department of Corporations.
    4. Except for the Adviser, all of applicant's shareholders (i.e., 
the two Dutch investors and the U.S. shareholders group) have redeemed 
the entire amount of their share interests. The Adviser retained a 
share interest in order to assure that applicant had sufficient assets 
to cover unanticipated miscellaneous expenses in connection with the 
winding-up of applicant's affairs. On April 15, 1994, the Adviser, as 
the sole remaining shareholder, approved applicant's deregistration, 
dissolution, and liquidation.
    5. As of April 28, 1994, the Adviser owned approximately 3,230 
shares owned with an aggregate net asset value of approximately 
$26,960. At that time, applicant's assets consisted of $21,270 in cash, 
unamortized prepaid organization expenses of $8,150 (written off in May 
1994), and dividends receivable of $8,550 (for which payment had not 
yet been received and may not be realized). Applicant's liabilities 
consisted entirely of accrued management fees payable and custody fees 
payable in the amount of $8,450 and $2,560, respectively. Applicant's 
assets will not be invested in any securities and any remaining net 
assets will be paid to the Adviser as the sole shareholder.
    6. The only expense incurred by applicant in connection with the 
liquidation was the accelerated write off of unamortized prepaid 
organization expense. Because this occurred when the Adviser was the 
sole shareholder, the expense was paid, in effect, by the Adviser. No 
other expenses connected with the liquidation have been incurred or are 
anticipated by applicant.
    7. Applicant has no debts or liabilities outstanding. All auditing 
and legal fees in conjunction with the liquidation have been or will be 
paid by the Adviser.
    8. Applicant is not a party to any litigation or administrative 
proceedings.
    9. Applicant is not now engaged, nor does it propose to engage, in 
any business activities other than those necessary for the winding-up 
of its affairs.

    For the Commission, by the Division of Investment Management, 
under delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-20625 Filed 8-22-94; 8:45 am]
BILLING CODE 8010-01-M