[Federal Register Volume 60, Number 239 (Wednesday, December 13, 1995)]
[Notices]
[Pages 64088-64089]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30298]



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SECURITIES AND EXCHANGE COMMISSION
[Rel. No. IC-21571; 811-7105]


CUNA Mutual Funds, Inc.; Notice of Application

December 6, 1995.
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: CUNA Mutual funds, Inc.

RELEVANT ACT SECTION: Section 8(f).

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

FILING DATE: The application was filed on July 28, 1995 and amended on 
October 27, 1995, and December 1, 1995.

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 January 2, 1996, 
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 5th Street, N.W., Washington, D.C. 
20549. Applicant, 100 East Pratt Street, Baltimore, MD 21202.

FOR FURTHER INFORMATION CONTACT:
Elaine M. Boggs, Staff Attorney, at (202) 942-0572, or Alison E. Baur, 
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.

Applicant's Representations

    1. Applicant is an open-end diversified management investment 
company that was organized under the laws of Maryland. Applicant 
consists of three portfolios, CUNA Mutual U.S. Government Income Fund, 
CUNA Mutual Cornerstone Fund, and Mutual Tax-Free Intermediate-Term 
Fund. On October 8, 1993, applicant registered under the Act as an 
investment company, and filed a registration statement to register its 
shares under the Securities Act of 1933. The registration statement was 
declared effective on December 30, 1993 and applicant began a public 
offering thereafter.
    2. On March 27, 1995, applicant's board of directors approved the 
liquidation and dissolution of applicant. The board of directors 
approved the liquidation because, among other things, they did not 
expect assets under management to rise to a level that would allow 
applicant to operate productively. At all times, affiliated persons of 
applicant held a majority of the outstanding shares of each portfolio.
    3. Between March 17 and March 30, 1995, letters were sent to all 
public shareholders notifying them of applicant's intent to liquidate 
all accounts effective May 12, 1995. On May 12, 1995, the remaining 
public shareholders of each portfolio received cash distributions equal 
to the net asset value of their accounts as of the close of business on 
that day. CMC-T.Rowe Price Management, LLC (``CMC''), applicant's 
administrator and a shareholder of applicant, made the decision to 
absorb all the expenses and costs of the liquidation and winding up of 
the business of applicant. Accordingly, applicant's affiliated persons 
received their distributions after the public shareholders to ensure 
that all costs and expenses of the liquidation (such as brokerage, 
taxes, etc.) would be absorbed by the affiliated parties and not the 
public shareholders. CMC was the sole remaining shareholder on May 26, 
1995, and did in fact bear all expenses and costs of winding up the 
business of applicant. CMC also paid all of applicant's organizational 
expenses.
    4. The liquidation was approved by CMC, the sole remaining 
shareholder of applicant's stock, on May 26, 1995. On that date, CMC 
redeemed its shares at net asset value and received applicant's 
remaining assets.
    5. With one exception, all portfolio securities were sold in the 
usual course. A total of $2,071.17 in brokerage commissions was 
incurred. The one exception involved a cross transaction with an 
affiliated mutual fund which followed the procedures set forth in rule 
17a-7 under the Act.\1\

    \1\ Rule 17a-7 exempts purchase or sales transactions between an 
investment company and other affiliated investment companies 
provided that certain conditions are met.
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    6. Applicant has no debts or other liabilities that remain 
outstanding. Applicant is not a party to any litigation or 
administrative proceeding.
    7. On June 30, 1995, applicant filed articles of dissolution with 
Maryland authorities.
    8. 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.


[[Page 64089]]

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-30298 Filed 12-12-95; 8:45 am]
BILLING CODE 8010-01-M