
[Federal Register: October 1, 2008 (Volume 73, Number 191)]
[Notices]               
[Page 57163-57166]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01oc08-126]                         

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 28406; 812-13506]

 
Van Kampen Retirement Strategy Trust, et al.; Notice of 
Application

September 25, 2008.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of application for an order under section 12(d)(1)(J) of 
the Investment Company Act of 1940 (``Act'') for an exemption from 
sections 12(d)(1)(A) and (B) of the Act, and under sections 6(c) and 
17(b) of the Act for an exemption from section 17(a) of the Act.

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Summary of the Application: Applicants request an order that would 
permit certain registered open-end management investment companies to 
acquire shares of other registered open-end management investment 
companies and unit investment trusts that are within and outside the 
same group of investment companies.

Applicants: Van Kampen Retirement Strategy Trust (``VK Trust''), Van 
Kampen Asset Management (``VKAM'' or ``Adviser'') and Morgan Stanley 
Investment Management Limited (``MSIM Ltd.'').

Filing Dates: The application was filed on March 7, 2008 and amended on 
September 19, 2008.

Hearing or Notification of Hearing: An order granting the application 
will be issued unless the Commission orders a hearing. Interested 
persons may request a hearing by writing to the Commission's Secretary 
and serving applicants with a copy of the request, personally or by 
mail. Hearing requests should be received by the Commission by 5:30 
p.m. on October 16, 2008, 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 Commission's Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F 
Street, NE., Washington, DC 20549-1090; Applicants: VK Trust and VKAM, 
522 Fifth Avenue, New York, New York 10036; MSIM Ltd., 25 Bank Street, 
Canary Wharf, London, United Kingdom E14 4AD.

FOR FURTHER INFORMATION CONTACT: Emerson S. Davis, Sr., Senior Counsel, 
at (202) 551-6868, or Mary Kay Frech, Branch Chief, at (202) 551-6821 
(Office of Investment Company Regulation, Division of Investment 
Management).

SUPPLEMENTARY INFORMATION: The following is a summary of the 
application. The complete application may be obtained for a fee at the 
Commission's Public Reference Desk, 100 F Street, NE., Washington, DC 
20549-0102 (telephone (202) 551-5850).

Applicants' Representations

    1. The VK Trust, organized as a Delaware statutory trust, is 
registered under the Act as an open-end management investment company. 
The VK Trust currently offers ten series, each with its own investment 
objective and policies (the ``VK Funds'').\1\ The Adviser, a wholly-
owned subsidiary of Van Kampen Investments Inc., which is an indirect 
wholly-owned subsidiary of Morgan Stanley, is registered as an 
investment adviser under the Investment Advisers Act of 1940 (the 
``Advisers Act''). The Adviser serves as the investment adviser to each 
VK Fund. MSIM Ltd., a wholly-owned subsidiary of Morgan Stanley, is an 
investment adviser registered under the Advisers Act and serves as 
subadviser for certain VK Funds.
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    \1\ Applicants request that the order extend to any other 
existing or future registered open-end management investment 
companies and their series that are part of the same group of 
investment companies, as defined in section 12(d)(1)(G) of the Act, 
as VK Trust and are, or may in the future be, advised by the Adviser 
or any existing or future entity controlling, controlled by, or 
under common control with the Adviser. All entities that currently 
intend to rely on the requested order are named as applicants and 
any other entity that relies on the order in the future will comply 
with the terms and conditions of the application.
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    2. Applicants request relief to permit certain VK Funds (each such 
VK Fund, a ``Fund of Funds'') to invest in: (a) other VK Funds 
(``Affiliated Underlying Funds''), and (b) registered open-end 
management investment companies and registered unit investment trusts 
(``UITs'') that are not part of the same ``group of investment 
companies'' (as defined in section 12(d)(1)(G)(ii) of the Act) as the 
VK Funds (``Unaffiliated Underlying Funds,'' and together with the 
Affiliated Underlying Funds, the ``Underlying Funds''). The 
Unaffiliated Underlying Funds may include UITs (``Unaffiliated 
Trusts'') and open-end management investment companies (``Unaffiliated 
Funds'') registered under the Act. The relief also would permit the 
Underlying Funds, their principal underwriter and any broker or dealer 
to sell the shares of the Underlying Funds to the Fund of Funds. 
Certain of the Unaffiliated Underlying Funds may have received 
exemptive relief to sell their shares on a national securities exchange 
at negotiated prices (``ETFs''). Each Fund of Funds may also invest in 
other securities and financial instruments that are not issued by 
registered investment companies and which are consistent with its 
investment objective. Applicants state that each Fund of Funds seeks to 
provide, in a single investment vehicle, an asset allocation strategy 
designed for investors planning to retire on or about a specific year 
or to provide income for investors who have already retired.

Applicants' Legal Analysis

A. Section 12(d)(1)

    1. Section 12(d)(1)(A) of the Act prohibits a registered investment 
company from acquiring shares of an investment company if the 
securities represent more than 3% of the total outstanding voting stock 
of the acquired company, more than 5% of the total assets of the 
acquiring company, or, together with the securities of any other 
investment companies, more than 10% of the total assets of the 
acquiring company. Section 12(d)(1)(B) of the Act prohibits a 
registered open-end investment company, its principal underwriter and 
any broker or dealer from selling the shares of the investment company 
to another investment company if the sale will cause the acquiring 
company to own more than 3% of the acquired company's voting stock, or 
if the sale will cause more than 10% of the acquired company's voting 
stock to be owned by investment companies generally.

[[Page 57164]]

    2. Section 12(d)(1)(J) of the Act provides that the Commission may 
exempt any person, security, or transaction, or any class or classes of 
persons, securities or transactions, from any provision of section 
12(d)(1) if the exemption is consistent with the public interest and 
the protection of investors. Applicants seek an exemption under section 
12(d)(1)(J) of the Act from the limitations of sections 12(d)(1)(A) and 
(B) to the extent necessary to permit the Funds of Funds to acquire 
shares of the Underlying Funds in excess of the limits set forth in 
section 12(d)(1)(A) of the Act and to permit the Underlying Funds, 
their principal underwriters and any broker or dealer to sell their 
shares to the Funds of Funds in excess of the limits set forth in 
section 12(d)(1)(B) of the Act.
    3. Applicants state that the proposed arrangement will not give 
rise to the policy concerns underlying sections 12(d)(1)(A) and (B), 
which include concerns about undue influence by a fund of funds or its 
affiliated persons over underlying funds, excessive layering of fees, 
and overly complex fund structures. Accordingly, applicants believe 
that the requested exemption is consistent with the public interest and 
the protection of investors.
    4. Applicants state that the proposed arrangement will not result 
in undue influence by a Fund of Funds or its affiliated persons over 
the Underlying Funds. The concern about undue influence does not arise 
in connection with a Fund of Funds' investment in the Affiliated 
Underlying Funds, since they are part of the same group of investment 
companies. To limit the control that a Fund of Funds or its affiliated 
persons may have over an Unaffiliated Underlying Fund, applicants 
submit that: (a) The Adviser; any person controlling, controlled by or 
under common control with the Adviser; and any investment company and 
any issuer that would be an investment company but for section 3(c)(1) 
or section 3(c)(7) of the Act advised or sponsored by the Adviser or 
any person controlling, controlled by or under common control with the 
Adviser (collectively, the ``Group''); and (b) MSIM Ltd. and any 
investment adviser to a Fund of Funds that meets the definition in 
section 2(a)(20)(B) of the Act (``Subadviser''); any person 
controlling, controlled by or under common control with the Subadviser; 
and any investment company and any issuer that would be an investment 
company but for section 3(c)(1) or 3(c)(7) of the Act (or portion of 
such investment company or issuer) advised or sponsored by the 
Subadviser or any person controlling, controlled by or under common 
control with the Subadviser (collectively, the ``Subadviser Group'') 
will not control (individually or in the aggregate) an Unaffiliated 
Underlying Fund within the meaning of section 2(a)(9) of the Act.
    5. Applicants also propose to prevent a Fund of Funds and its 
affiliated entities from taking advantage of an Unaffiliated Underlying 
Fund with respect to transactions between the entities by precluding a 
Fund of Funds and its Adviser, Subadviser, promoter, principal 
underwriter and any person controlling, controlled by or under common 
control with any of these entities (each, a ``Fund of Funds 
Affiliate'') from causing any existing or potential investment by the 
Fund of Funds in an Unaffiliated Underlying Fund to influence the terms 
of any services or transactions between the Fund of Funds or a Fund of 
Funds Affiliate and the Unaffiliated Underlying Fund or its investment 
adviser(s), sponsor, promoter, principal underwriter and any person 
controlling, controlled by or under common control with any of these 
entities (each, an ``Unaffiliated Underlying Fund Affiliate''). In 
addition, no Fund of Funds or Fund of Funds Affiliate (except to the 
extent it is acting in its capacity as an investment adviser to an 
Unaffiliated Fund or sponsor to an Unaffiliated Trust) will cause an 
Unaffiliated Underlying Fund to purchase a security in an offering of 
securities during the existence of an underwriting or selling syndicate 
of which a principal underwriter is an officer, director, member of an 
advisory board, Adviser, Subadviser, or employee of the Fund of Funds, 
or a person of which any such officer, director, member of an advisory 
board, Adviser, Subadviser, or employee is an affiliated person (each, 
an ``Underwriting Affiliate,'' except any person whose relationship to 
the Unaffiliated Underlying Fund is covered by section 10(f) of the Act 
is not an Underwriting Affiliate). An offering of securities during the 
existence of an underwriting or selling syndicate of which a principal 
underwriter is an Underwriting Affiliate is an ``Affiliated 
Underwriting.''
    6. To further ensure that an Unaffiliated Fund understands the 
implications of an investment by a Fund of Funds under the requested 
order, prior to its investment in the shares of an Unaffiliated Fund in 
excess of the limit in section 12(d)(1)(A)(i), a Fund of Funds and the 
Unaffiliated Fund will execute an agreement stating, without 
limitation, that their boards of directors or trustees and their 
investment advisers understand the terms and conditions of the order 
and agree to fulfill their responsibilities under the order 
(``Participation Agreement''). Applicants note that an Unaffiliated 
Underlying Fund (other than an ETF whose shares are purchased by a Fund 
of Funds in the secondary market) will retain the right to reject any 
investment by a Fund of Funds.\2\
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    \2\ An Unaffiliated Fund, including an ETF, would retain its 
right to reject an initial investment by a Fund of Funds in excess 
of the limit in section 12(d)(1)(A)(i) of the Act by declining to 
execute the Participation Agreement.
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    7. Applicants do not believe that the proposed arrangement will 
involve excessive layering of fees. With respect to investment advisory 
fees, applicants state that, prior to approval of any investment 
advisory contract under section 15 of the Act, the board of trustees 
(``Board'') of each Fund of Funds, including a majority of the trustees 
who are not ``interested persons,'' as defined in section 2(a)(19) of 
the Act (``Disinterested Trustees''), will find that the advisory fees 
charged under the advisory contract are based on services provided that 
are in addition to, rather than duplicative of, services provided 
pursuant to any Underlying Fund's advisory contract(s). Applicants 
further state that the Adviser will waive fees otherwise payable to it 
by the Fund of Funds in an amount at least equal to any compensation 
(including fees received pursuant to a plan adopted by an Unaffiliated 
Fund under rule 12b-1 under the Act) received by the Adviser or an 
affiliated person of the Adviser from an Unaffiliated Underlying Fund, 
other than any advisory fees paid to the Adviser or its affiliated 
person by an Unaffiliated Fund, in connection with the investment by 
the Fund of Funds in the Unaffiliated Underlying Fund.
    8. Applicants state that the proposed arrangement will not create 
an overly complex fund structure. Applicants note that an Underlying 
Fund will be prohibited from acquiring securities of any investment 
company or company relying on section 3(c)(1) or 3(c)(7) of the Act in 
excess of the limits contained in section 12(d)(1)(A), except to the 
extent that such Underlying Fund: (a) Receives securities of another 
investment company as a dividend or as a result of a plan of 
reorganization of a company (other than a plan devised for the purpose 
of evading section 12(d)(1) of the Act); or (b) acquires (or is deemed 
to have acquired) securities of another investment company pursuant to 
exemptive relief from the Commission permitting such Underlying Fund 
to: (i) Acquire securities of one or more investment companies for 
short-term cash management purposes, or (ii)

[[Page 57165]]

engage in interfund borrowing and lending transactions. Applicants also 
represent that a Fund of Funds' prospectus and sales literature will 
contain clear, concise, ``plain English'' disclosure designed to inform 
investors of the unique characteristics of the proposed Fund of Funds 
structure, including, but not limited to, its expense structure and the 
additional expenses of investing in Underlying Funds.

B. Section 17(a)

    1. Section 17(a) of the Act generally prohibits sales or purchases 
of securities between a registered investment company and any 
affiliated person of the company. Section 2(a)(3) of the Act defines an 
``affiliated person'' of another person to include (a) Any person 
directly or indirectly owning, controlling, or holding with power to 
vote, 5% or more of the outstanding voting securities of the other 
person; (b) any person 5% or more of whose outstanding voting 
securities are directly or indirectly owned, controlled, or held with 
power to vote by the other person; and (c) any person directly or 
indirectly controlling, controlled by, or under common control with the 
other person.
    2. Applicants state that the Funds of Funds and the Affiliated 
Underlying Funds might be deemed to be under common control of the 
Adviser and therefore affiliated persons of one another. Applicants 
also state that the Funds of Funds and the Underlying Funds might be 
deemed to be affiliated persons of one another if a Fund of Funds 
acquires 5% or more of an Underlying Fund's outstanding voting 
securities. In light of these and other possible affiliations, section 
17(a) could prevent an Underlying Fund from selling shares to and 
redeeming shares from a Fund of Funds.
    3. Section 17(b) of the Act authorizes the Commission to grant an 
order permitting a transaction otherwise prohibited by section 17(a) if 
it finds that (a) The terms of the proposed transaction are fair and 
reasonable and do not involve overreaching on the part of any person 
concerned; (b) the proposed transaction is consistent with the policies 
of each registered investment company involved; and (c) the proposed 
transaction is consistent with the general purposes of the Act. Section 
6(c) of the Act permits the Commission to exempt any person, security 
or transactions or any class or classes of persons, securities or 
transactions, from any provision of the Act if such exemption 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.
    4. Applicants submit that the proposed structure satisfies the 
standards for relief under sections 17(b) and 6(c) of the Act.\3\ 
Applicants state that the terms upon which an Underlying Fund will sell 
its shares to or purchase its shares from a Fund of Funds will be based 
on the net asset value of each Underlying Fund.\4\ Applicants state 
that the proposed investment will be consistent with the policies of 
each Fund of Funds and Underlying Fund, and with the general purposes 
of the Act.
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    \3\ Applicants acknowledge that receipt of compensation by (a) 
an affiliated person of a Fund of Funds, or an affiliated person of 
such person, for the purchase by the Fund of Funds of shares of an 
Underlying Fund or (b) an affiliated person of an Underlying Fund, 
or an affiliated person of such person, for the sale by the 
Underlying Fund of its shares to a Fund of Funds may be prohibited 
by section 17(e)(1) of the Act. The Participation Agreement also 
will include this acknowledgement.
    \4\ Applicants note that a Fund of Funds generally would 
purchase and sell shares of an Unaffiliated Underlying Fund that 
operates as an ETF through secondary market transactions at market 
prices rather than through principal transactions with the 
Unaffiliated Underlying Fund at net asset value. Applicants would 
not rely on the requested relief from section 17(a) for such 
secondary market transactions. To the extent that a Fund of Funds 
purchases or redeems shares from an Unaffiliated Underlying Fund 
that is an ETF and an affiliated person of the Fund of Funds in 
exchange for a basket of specified securities as described in the 
application for the exemptive order upon which the ETF relies, 
applicants also request relief from section 17(a) for those 
transactions.
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Applicants' Conditions

    Applicants agree that any order granting the requested relief shall 
be subject to the following conditions:
    1. The members of the Group will not control (individually or in 
the aggregate) an Unaffiliated Underlying Fund within the meaning of 
section 2(a)(9) of the Act. The members of a Subadviser Group will not 
control (individually or in the aggregate) an Unaffiliated Underlying 
Fund within the meaning of section 2(a)(9) of the Act. If, as a result 
of a decrease in the outstanding voting securities of an Unaffiliated 
Underlying Fund, the Group or the Subadviser Group, each in the 
aggregate, becomes a holder of more than 25% of the outstanding voting 
securities of the Unaffiliated Underlying Fund, then the Group or the 
Subadviser Group will vote its shares of the Unaffiliated Underlying 
Fund in the same proportion as the vote of all other holders of the 
Unaffiliated Underlying Fund's shares. This condition will not apply to 
the Subadviser Group with respect to an Unaffiliated Underlying Fund 
for which the Subadviser or a person controlling, controlled by, or 
under common control with the Subadviser acts as the investment adviser 
within the meaning section 2(a)(20)(A) of the Act (in the case of an 
Unaffiliated Fund) or as the sponsor (in the case of an Unaffiliated 
Trust).
    2. No Fund of Funds or Fund of Funds Affiliate will cause any 
existing or potential investment by the Fund of Funds in an 
Unaffiliated Underlying Fund to influence the terms of any services or 
transactions between the Fund of Funds or a Fund of Funds Affiliate and 
the Unaffiliated Underlying Fund or an Unaffiliated Underlying Fund 
Affiliate.
    3. Each Fund of Funds Board, including a majority of the 
Disinterested Trustees, will adopt procedures reasonably designed to 
ensure that the Adviser and the Subadviser are conducting the 
investment program of the Fund of Funds without taking into account any 
consideration received by the Fund of Funds or Fund of Funds Affiliate 
from an Unaffiliated Underlying Fund or an Unaffiliated Underlying Fund 
Affiliate in connection with any services or transactions.
    4. Once an investment by a Fund of Funds in the securities of an 
Unaffiliated Fund exceeds the limit of section 12(d)(1)(A)(i) of the 
Act, the Board of the Unaffiliated Fund, including a majority of the 
Disinterested Trustees, will determine that any consideration paid by 
the Unaffiliated Fund to a Fund of Funds or a Fund of Funds Affiliate 
in connection with any services or transactions: (a) Is fair and 
reasonable in relation to the nature and quality of the services and 
benefits received by the Unaffiliated Fund; (b) is within the range of 
consideration that the Unaffiliated Fund would be required to pay to 
another unaffiliated entity in connection with the same services or 
transactions; and (c) does not involve overreaching on the part of any 
person concerned. This condition does not apply with respect to any 
services or transactions between an Unaffiliated Fund and its 
investment adviser(s), or any person controlling, controlled by, or 
under common control with such investment adviser(s).
    5. No Fund of Funds or Fund of Funds Affiliate (except to the 
extent it is acting in its capacity as an investment adviser to an 
Unaffiliated Fund or sponsor to an Unaffiliated Trust) will cause an 
Unaffiliated Underlying Fund to purchase a security in any Affiliated 
Underwriting.
    6. The Board of an Unaffiliated Fund, including a majority of the 
Disinterested Trustees, will adopt procedures

[[Page 57166]]

reasonably designed to monitor any purchases of securities by the 
Unaffiliated Fund in an Affiliated Underwriting once an investment by a 
Fund of Funds in the securities of the Unaffiliated Fund exceeds the 
limit of section 12(d)(1)(A)(i) of the Act, including any purchases 
made directly from an Underwriting Affiliate. The Board of the 
Unaffiliated Fund will review these purchases periodically, but no less 
frequently than annually, to determine whether the purchases were 
influenced by the investment by the Fund of Funds in shares of the 
Unaffiliated Fund. The Board of the Unaffiliated Fund will consider, 
among other things: (a) Whether the purchases were consistent with the 
investment objectives and policies of the Unaffiliated Fund; (b) how 
the performance of securities purchased in an Affiliated Underwriting 
compares to the performance of comparable securities purchased during a 
comparable period of time in underwritings other than Affiliated 
Underwritings or to a benchmark such as a comparable market index; and 
(c) whether the amount of securities purchased by the Unaffiliated Fund 
in Affiliated Underwritings and the amount purchased directly from an 
Underwriting Affiliate have changed significantly from prior years. The 
Board of the Unaffiliated Fund will take any appropriate actions based 
on its review, including, if appropriate, the institution of procedures 
designed to ensure that purchases of securities in Affiliated 
Underwritings are in the best interests of shareholders.
    7. Each Unaffiliated Fund will maintain and preserve permanently in 
an easily accessible place a written copy of the procedures described 
in the preceding condition, and any modifications to such procedures, 
and will maintain and preserve for a period of not less than six years 
from the end of the fiscal year in which any purchase from an 
Affiliated Underwriting occurred, the first two years in an easily 
accessible place, a written record of each purchase made once an 
investment by a Fund of Funds in the securities of an Unaffiliated Fund 
exceeds the limit of section 12(d)(1)(A)(i) of the Act, setting forth 
from whom the securities were acquired, the identity of the 
underwriting syndicate's members, the terms of the purchase, and the 
information or materials upon which the determinations of the Board of 
the Unaffiliated Fund were made.
    8. Prior to its investment in shares of an Unaffiliated Fund in 
excess of the limit in section 12(d)(1)(A)(i) of the Act, the Fund of 
Funds and the Unaffiliated Fund will execute a Participation Agreement 
stating, without limitation, that their boards of directors or trustees 
and their investment advisers understand the terms and conditions of 
the order and agree to fulfill their responsibilities under the order. 
At the time of its investment in shares of an Unaffiliated Fund in 
excess of the limit in section 12(d)(1)(A)(i), a Fund of Funds will 
notify the Unaffiliated Fund of the investment. At such time, the Fund 
of Funds will also transmit to the Unaffiliated Fund a list of the 
names of each Fund of Funds Affiliate and Underwriting Affiliate. The 
Fund of Funds will notify the Unaffiliated Fund of any changes to the 
list as soon as reasonably practicable after a change occurs. The 
Unaffiliated Fund and the Fund of Funds will maintain and preserve a 
copy of the order, the Participation Agreement, and the list with any 
updated information for the duration of the investment and for a period 
of not less than six years thereafter, the first two years in an easily 
accessible place.
    9. Prior to approving any investment advisory contract under 
section 15 of the Act, each Fund of Funds Board, including a majority 
of the Disinterested Trustees, will find that the advisory fees charged 
under the advisory contract are based on services provided that are in 
addition to, rather than duplicative of, services provided under the 
advisory contract(s) of any Underlying Funds in which the Fund of Funds 
may invest. This finding, and the basis upon which the finding was 
made, will be recorded fully in the minute books of the appropriate 
Fund of Funds.
    10. The Adviser will waive fees otherwise payable to it by the Fund 
of Funds in an amount at least equal to any compensation (including 
fees received pursuant to a plan adopted by an Unaffiliated Fund under 
rule 12b-1 under the Act) received by the Adviser, or an affiliated 
person of the Adviser, from an Unaffiliated Underlying Fund, other than 
any advisory fees paid to the Adviser or an affiliated person of the 
Adviser by the Unaffiliated Fund, in connection with the investment by 
the Fund of Funds in the Unaffiliated Underlying Fund. Any Subadviser 
will waive fees otherwise payable to the Subadviser, directly or 
indirectly, by the Fund of Funds in an amount at least equal to any 
compensation received by the Subadviser, or an affiliated person of the 
Subadviser, from an Unaffiliated Underlying Fund, other than any 
advisory fees paid to the Subadviser or an affiliated person of the 
Subadviser by the Unaffiliated Fund, in connection with the investment 
by the Fund of Funds in the Unaffiliated Underlying Fund made at the 
direction of the Subadviser. In the event that the Subadviser waives 
fees, the benefit of the waiver will be passed through to the Fund of 
Funds.
    11. No Underlying Fund will acquire securities of any other 
investment company or company relying on section 3(c)(1) or 3(c)(7) of 
the Act, in excess of the limits contained in section 12(d)(1)(A) of 
the Act, except to the extent that such Underlying Fund: (a) Receives 
securities of another investment company as a dividend or as a result 
of a plan of reorganization of a company (other than a plan devised for 
the purpose of evading section 12(d)(1) of the Act); or (b) acquires 
(or is deemed to have acquired) securities of another investment 
company pursuant to exemptive relief from the Commission permitting 
such Underlying Fund to: (i) Acquire securities of one or more 
investment companies for short-term cash management purposes, or (ii) 
engage in interfund borrowing and lending transactions.
    12. Any sales charges and/or service fees charged with respect to 
shares of a Fund of Funds will not exceed the limits applicable to 
funds of funds set forth in NASD Conduct Rule 2830.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-23043 Filed 9-30-08; 8:45 am]

BILLING CODE 8011-01-P
