
[Federal Register: July 20, 2009 (Volume 74, Number 137)]
[Notices]               
[Page 35211-35215]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20jy09-83]                         

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 28818; File No. 812-13200]

 
Reaves Utility Income Fund, et al.; Notice of Application

July 14, 2009.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of application under section 6(c) of the Investment 
Company Act of 1940 (``Act'') for an exemption from section 19(b) of 
the Act and rule 19b-1 under the Act.

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Summary of Application: Applicants request an order to permit a 
registered closed-end investment company to make periodic distributions 
of long-term capital gains with respect to its common shares as often 
as monthly in any one taxable year, and as frequently as distributions 
are specified by or in accordance with the terms of its preferred 
shares.

Applicants: Reaves Utility Income Fund (``UTG'') and W.H. Reaves & Co., 
Inc. (``Investment Adviser'').

DATES: Filing Dates: June 14, 2005, and amended on February 14, 2007, 
October 15, 2008, April 20, 2009, and July 10, 2009.

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 August 10, 2009, 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, Securities and Exchange Commission, 100 F Street, 
NE., Washington, DC 20549-1090; Applicants: Reaves Utility Income Fund, 
1290 Broadway, Suite 1100, Denver, CO 80203, and W.H. Reaves & Co., 
Inc., 10 Exchange Place, 18th Floor, Jersey City, NJ 07302.

FOR FURTHER INFORMATION CONTACT: Courtney S. Thornton, Senior Counsel, 
at (202) 551-6812, or Mary Kay Frech, Branch Chief, at (202) 551-6821 
(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 via the 
Commission's Web site by searching for the file number, or for an 
applicant using the Company name box, at http://www.sec.gov/search/
search.htm, or by calling (202) 551-8090.

Applicants' Representations

    1. UTG is a registered closed-end management investment company 
organized as a Delaware statutory trust.\1\ UTG's primary investment 
objective is to provide a high level of after-tax income and total 
return consisting primarily of tax-advantaged dividend income and 
capital appreciation. The common shares issued by UTG are listed on the 
NYSE Amex. UTG currently has three series of preferred shares 
outstanding, which are not listed or traded on any stock exchange. 
Applicants believe that the shareholders of UTG are generally 
conservative, dividend-sensitive investors who desire current income 
periodically and may favor a fixed distribution policy.
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    \1\ UTG is the only closed-end investment company that currently 
intends to rely on the order. Applicants request that the order also 
apply to any registered closed-end investment company that in the 
future: (a) Is advised by the Investment Adviser (including any 
successor in interest) or by any entity controlling, controlled by, 
or under common control (within the meaning of section 2(a)(9) of 
the Act) with the Investment Adviser; and (b) complies with the 
terms and conditions of the requested order (collectively with UTG, 
``Funds''). A successor in interest is limited to entities that 
result from a reorganization into another jurisdiction or a change 
in the type of business organization.
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    2. The Investment Adviser is a Delaware corporation registered 
under the Investment Advisers Act of 1940 (``Advisers Act''). The 
Investment Adviser serves as investment adviser to

[[Page 35212]]

UTG and may in the future serve as investment adviser to one or more 
additional Funds. Each Fund will be advised by an investment adviser 
that is registered under the Advisers Act.
    3. Applicants state that on December 12, 2006, the Board of 
Trustees (the ``Board'') of UTG, including a majority of the members of 
the Board who are not ``interested persons'' of UTG as defined in 
section 2(a)(19) of the Act (the ``Independent Trustees''), reviewed 
information regarding the purpose and terms of a proposed distribution 
policy, the reasonably foreseeable effect of such policy on UTG's long-
term total return (based on market price and net asset value (``NAV'') 
per common share) and the expected relationship between UTG's 
distribution rate on its common shares under the policy and UTG's total 
return (in relation to NAV per share). Applicants state that the 
Independent Trustees also considered information about any potential or 
actual conflicts of interest that the Investment Adviser, any 
affiliated persons of the Investment Adviser, or any other affiliated 
persons of UTG may have relating to the adoption or implementation of 
such policy. Applicants further state that after considering such 
information the Board, including the Independent Trustees, approved a 
distribution policy with respect to UTG's common shares (the ``Plan'') 
and determined that such Plan is consistent with UTG's investment 
objectives and policies and in the best interests of UTG's common 
shareholders. Prior to implementing the Plan, the Board of UTG, 
including the Independent Trustees, will review the factors considered 
in connection with its approval of the Plan, as well as any changes in 
such factors since the date of its approval, and will confirm that the 
Plan is consistent with UTG's investment objectives and policies and in 
the best interests of UTG's common shareholders.
    4. Applicants state that the purpose of the Plan is to provide to 
UTG's common shareholders a regular, monthly distribution that is not 
dependent on the timing or amount of investment income earned or 
capital gains realized by UTG. Applicants note that under the Plan, UTG 
will distribute all available investment income to shareholders, 
consistent with UTG's primary investment objective of providing a high 
level of after-tax income and total returns. Applicants state that if 
and when sufficient investment income is not available on a monthly 
basis, UTG will distribute long-term capital gains and/or return of 
capital to its shareholders to maintain the level distribution rate 
that has been approved by the Board. Applicants further state that the 
minimum annual distribution rate will be independent of UTG's 
performance during any particular period, but is expected to correlate 
with UTG's performance over time. Applicants represent that the amount 
and frequency of distributions may be amended at any time by the Board 
without prior notice to UTG's shareholders. Applicants state that if 
UTG's net investment income and net realized capital gains for any year 
exceed the amount required to be distributed under the Plan, UTG will 
at a minimum make distributions necessary to comply with the 
distribution requirements of subchapter M of the Internal Revenue Code 
of 1986 (``Code''). Applicants note that the Plan provides that it can 
be amended, suspended, or terminated at any time by the Board without 
prior notice to UTG's shareholders.
    5. Applicants state that at the December 12, 2006 meeting, the 
Board adopted policies and procedures under rule 38a-1 under the Act 
that are reasonably designed to ensure that all notices required to be 
sent to UTG's shareholders pursuant to section 19(a) of the Act, rule 
19a-1 under the Act, and condition IV below (``19(a) Notices'') comply 
with condition II below, and that all other written communications by 
UTG or its agents regarding distributions under the Plan include the 
disclosure required by condition III below. Applicants state that the 
Board also adopted policies and procedures at that meeting that require 
UTG to keep records that demonstrate its compliance with all of the 
conditions of the requested order and that are necessary for UTG to 
form the basis for, or demonstrate the calculation of, the amounts 
disclosed in its 19(a) Notices.

Applicants' Legal Analysis

    1. Section 19(b) of the Act generally makes it unlawful for any 
registered investment company to make long-term capital gains 
distributions more than once every twelve months. Rule 19b-1 under the 
Act limits the number of capital gains dividends, as defined in section 
852(b)(3)(C) of the Code (``distributions''), that a fund may make with 
respect to any one taxable year to one, plus a supplemental ``clean 
up'' distribution made pursuant to section 855 of the Code not 
exceeding 10% of the total amount distributed for the year, plus one 
additional capital gain dividend made in whole or in part to avoid the 
excise tax under section 4982 of the Code.
    2. Section 6(c) provides that the Commission may, by order upon 
application, conditionally or unconditionally exempt any person, 
security, or transaction, or any class or classes of persons, 
securities or transactions, from any provision of the Act, if and to 
the extent that the 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.
    3. Applicants state that one of the concerns underlying section 
19(b) and rule 19b-1 is that shareholders might be unable to 
differentiate between frequent distributions of capital gains and 
dividends from investment income. Applicants state, however, that rule 
19a-1 effectively addresses this concern by requiring that a separate 
statement showing the sources of a distribution (e.g., estimated net 
income, net short-term capital gains, net long-term capital gains and/
or return of capital) accompany any distributions (or the confirmation 
of the reinvestment of distributions) estimated to be sourced in part 
from capital gains or capital. Applicants state that the same 
information also is included in UTG's annual reports to shareholders 
and on its IRS Form 1099-DIV, which is sent to each common and 
preferred shareholder who received distributions during a particular 
year (including shareholders who have sold shares during the year).
    4. Applicants further state that UTG will make the additional 
disclosures required by the conditions set forth below, and has adopted 
compliance policies and procedures in accordance with rule 38a-1 to 
ensure that all required 19(a) Notices and disclosures are sent to 
shareholders. Applicants argue that by providing the information 
required by section 19(a) and rule 19a-1, and by complying with the 
procedures adopted under the Plan and the conditions listed below, 
UTG's shareholders are provided sufficient information to understand 
that their periodic distributions are not tied to UTG's net investment 
income (which for this purpose is UTG's taxable income other than from 
capital gains) and realized capital gains to date, and may not 
represent yield or investment return. Applicants also state that 
compliance with UTG's compliance procedures and condition III set forth 
below will ensure that prospective shareholders and third parties are 
provided with the same information. Accordingly, applicants assert that 
continuing to subject UTG to section 19(b) and rule 19b-1 would afford 
shareholders no extra protection.
    5. Applicants note that section 19(b) and rule 19b-1 also were 
intended to

[[Page 35213]]

prevent certain improper sales practices, including, in particular, the 
practice of urging an investor to purchase shares of a fund on the 
basis of an upcoming capital gains dividend (``selling the dividend''), 
where the dividend would result in an immediate corresponding reduction 
in NAV and would be in effect a taxable return of the investor's 
capital. Applicants assert that the ``selling the dividend'' concern 
should not apply to closed-end investment companies, such as UTG, that 
do not continuously distribute shares. According to applicants, if the 
underlying concern extends to secondary market purchases of shares of 
closed-end funds that are subject to a large upcoming capital gains 
dividend, adoption of a periodic distribution plan actually helps 
minimize the concern by avoiding, through periodic distributions, any 
buildup of large end-of-the-year distributions.
    6. Applicants also note that common shares of closed-end funds that 
invest primarily in equity securities often trade in the marketplace at 
a discount to the funds' NAV. Applicants believe that this discount may 
be reduced for closed-end funds that pay relatively frequent dividends 
on their common shares at a consistent rate, whether or not those 
dividends contain an element of long-term capital gain.
    7. Applicants assert that the application of rule 19b-1 to the Plan 
actually could have an undesirable influence on portfolio management 
decisions. Applicants state that, in the absence of an exemption from 
rule 19b-1, the implementation of a periodic distribution plan imposes 
pressure on management (a) not to realize any net long-term capital 
gains until the point in the year that the fund can pay all of its 
remaining distributions in accordance with rule 19b-1, and (b) not to 
realize any long-term capital gains during any particular year in 
excess of the amount of the aggregate pay-out for the year (since as a 
practical matter excess gains must be distributed and accordingly would 
not be available to satisfy pay-out requirements in following years), 
notwithstanding that purely investment considerations might favor 
realization of long-term gains at different times or in different 
amounts. Applicants thus assert that the limitation on the number of 
capital gain distributions that a fund may make with respect to any one 
year imposed by rule 19b-1, may prevent the efficient operation of a 
periodic distribution plan whenever that fund's realized net long-term 
capital gains in any year exceed the total of the periodic 
distributions that may include such capital gains under the rule.
    8. Applicants also assert that rule 19b-1 may cause fixed regular 
periodic distributions under a periodic distribution plan to be funded 
with returns of capital \2\ (to the extent net investment income and 
realized short-term capital gains are insufficient to fund the 
distribution), even though realized net long-term capital gains 
otherwise could be available. To distribute all of a fund's long-term 
capital gains within the limits in rule 19b-1, a fund may be required 
to make total distributions in excess of the annual amount called for 
by its periodic distribution plan, or to retain and pay taxes on the 
excess amount. Applicants thus assert that the requested order would 
minimize these effects of rule 19b-1 by enabling UTG to realize long-
term capital gains as often as investment considerations dictate 
without fear of violating rule 19b-1.
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    \2\ Returns of capital as used in the application means return 
of capital for financial accounting purposes and not for tax 
accounting purposes.
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    9. Applicants state that Revenue Ruling 89-81 under the Code 
requires that a fund that has both common stock and preferred stock 
outstanding designate the types of income, e.g., investment income and 
capital gains, in the same proportion as the total distributions 
distributed to each class for the tax year. To satisfy the 
proportionate designation requirements of Revenue Ruling 89-81, 
whenever a fund has realized a long-term capital gain with respect to a 
given tax year, the fund must designate the required proportionate 
share of such capital gain to be included in common and preferred stock 
dividends. Applicants state that although rule 19b-1 allows a fund some 
flexibility with respect to the frequency of capital gains 
distributions, a fund might use all of the exceptions available under 
the rule for a tax year and still need to distribute additional capital 
gains allocated to the preferred stock to comply with Revenue Ruling 
89-81.
    10. Applicants assert that the potential abuses addressed by 
section 19(b) and rule 19b-1 do not arise with respect to preferred 
stock issued by a closed-end fund. Applicants assert that such 
distributions are fixed or determined in periodic auctions by reference 
to short-term interest rates rather than by reference to performance of 
the issuer, and Revenue Ruling 89-81 determines the proportion of such 
distributions that are comprised of the long-term capital gains.
    11. Applicants also submit that the ``selling the dividend'' 
concern is not applicable to preferred stock, which entitles a holder 
to no more than a periodic dividend at a fixed rate or the rate 
determined by the market, and, like a debt security, is priced based 
upon its liquidation value, dividend rate, credit quality, and 
frequency of payment. Applicants state that investors buy preferred 
shares for the purpose of receiving payments at the frequency bargained 
for, and do not expect the liquidation value of their shares to change.
    12. Applicants request an order under section 6(c) granting an 
exemption from section 19(b) and rule 19b-1 to permit UTG to make 
periodic long-term capital gains distributions (as defined in section 
852(b)(3)(C) of the Code) as often as monthly in any one taxable year 
in respect of its common shares and as often as specified by or 
determined in accordance with the terms thereof in respect of its 
preferred shares.\3\
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    \3\ Applicants state that a future Fund that relies on the 
requested order will satisfy each of the representations in the 
application except that such representations will be made in respect 
of actions by the board of directors or trustees of such future Fund 
and will be made at a future time.
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    Applicants' Conditions:
    Applicants agree that any order of the Commission granting the 
requested relief will be subject to the following conditions:

I. Compliance Review and Reporting

    Each Fund's chief compliance officer will: (a) Report to the Fund's 
Board, no less frequently than once every three months or at the next 
regularly scheduled quarterly Board meeting, whether (i) the Fund and 
its Investment Adviser have complied with the conditions of the order, 
and (ii) a material compliance matter, as defined in rule 38a-1(e)(2) 
under the Act, has occurred with respect to such conditions; and (b) 
review the adequacy of the policies and procedures adopted by the Board 
no less frequently than annually.

II. Disclosures to Fund Shareholders

    A. Each 19(a) Notice disseminated to the holders of the Fund's 
common shares, in addition to the information required by section 19(a) 
and rule 19a-1:
    1. Will provide, in a tabular or graphical format:
    (a) The amount of the distribution, on a per share basis, together 
with the amounts of such distribution amount, on a per share basis and 
as a percentage of such distribution amount, from estimated: (A) Net 
investment income; (B) net realized short-term capital gains; (C) net 
realized long-term capital gains; and (D) return of capital or other 
capital source;

[[Page 35214]]

    (b) The fiscal year-to-date cumulative amount of distributions, on 
a per share basis, together with the amounts of such cumulative amount, 
on a per share basis and as a percentage of such cumulative amount of 
distributions, from estimated: (A) Net investment income; (B) net 
realized short-term capital gains; (C) net realized long-term capital 
gains; and (D) return of capital or other capital source;
    (c) The average annual total return in relation to the change in 
NAV for the 5-year period (or, if the Fund's history of operations is 
less than five years, the time period commencing immediately following 
the Fund's first public offering) ending on the last day of the month 
prior to the most recent distribution record date compared to the 
current fiscal period's annualized distribution rate expressed as a 
percentage of NAV as of the last day of the month prior to the most 
recent distribution record date; and
    (d) The cumulative total return in relation to the change in NAV 
from the last completed fiscal year to the last day of the month prior 
to the most recent distribution record date compared to the fiscal 
year-to-date cumulative distribution rate expressed as a percentage of 
NAV as of the last day of the month prior to the most recent 
distribution record date.
    Such disclosure shall be made in a type size at least as large and 
as prominent as the estimate of the sources of the current 
distribution; and
    2. Will include the following disclosure:
    (a) ``You should not draw any conclusions about the Fund's 
investment performance from the amount of this distribution or from the 
terms of the Fund's Plan'';
    (b) ``The Fund estimates that it has distributed more than its 
income and net realized capital gains; therefore, a portion of your 
distribution may be a return of capital. A return of capital may occur 
for example, when some or all of the money that you invested in the 
Fund is paid back to you. A return of capital distribution does not 
necessarily reflect the Fund's investment performance and should not be 
confused with `yield' or `income' ''; \4\ and
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    \4\ The disclosure in this condition II.A.2(b) will be included 
only if the current distribution or the fiscal year-to-date 
cumulative distributions are estimated to include a return of 
capital.
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    (c) ``The amounts and sources of distributions reported in this 
19(a) Notice are only estimates and are not being provided for tax 
reporting purposes. The actual amounts and sources of the amounts for 
tax reporting purposes will depend upon the Fund's investment 
experience during the remainder of its fiscal year and may be subject 
to changes based on tax regulations. The Fund will send you a Form 
1099-DIV for the calendar year that will tell you how to report these 
distributions for federal income tax purposes.''
    Such disclosure shall be made in a type size at least as large as 
and as prominent as any other information in the 19(a) Notice and 
placed on the same page in close proximity to the amount and the 
sources of the distribution.
    B. On the inside front cover of each report to shareholders under 
rule 30e-1 under the Act, the Fund will:
    1. Describe the terms of the Plan (including the fixed amount or 
fixed percentage of the distributions and the frequency of the 
distributions);
    2. Include the disclosure required by condition II.A.2(a) above;
    3. State, if applicable, that the Plan provides that the Board may 
amend or terminate the Plan at any time without prior notice to Fund 
shareholders; and
    4. Describe any reasonably foreseeable circumstances that might 
cause the Fund to terminate the Plan and any reasonably foreseeable 
consequences of such termination.
    C. Each report provided to shareholders under rule 30e-1 under the 
Act and in each prospectus filed with the Commission on Form N-2 under 
the Act, will provide the Fund's total return in relation to changes in 
NAV in the financial highlights table and in any discussion about the 
Fund's total return.

III. Disclosure to Shareholders, Prospective Shareholders and Third 
Parties

    A. Each Fund will include the information contained in the relevant 
19(a) Notice, including the disclosure required by condition II.A.2 
above, in any written communication (other than a communication on Form 
1099) about the Plan or distributions under the Plan by the Fund, or 
agents that the Fund has authorized to make such communication on the 
Fund's behalf, to any Fund common shareholder, prospective common 
shareholder or third-party information provider;
    B. Each Fund will issue, contemporaneously with the issuance of any 
19(a) Notice, a press release containing the information in the 19(a) 
Notice and will file with the Commission the information contained in 
such 19(a) Notice, including the disclosure required by condition 
II.A.2 above, as an exhibit to its next filed Form N-CSR; and
    C. Each Fund will post prominently a statement on its (or the 
Investment Adviser's) web site containing the information in each 19(a) 
Notice, including the disclosure required by condition II.A.2 above, 
and will maintain such information on such web site for at least 24 
months.

IV. Delivery of 19(a) Notices to Beneficial Owners

    If a broker, dealer, bank or other person (``financial 
intermediary'') holds common stock issued by a Fund in nominee name, or 
otherwise, on behalf of a beneficial owner, the Fund: (a) Will request 
that the financial intermediary, or its agent, forward the 19(a) Notice 
to all beneficial owners of the Fund's shares held through such 
financial intermediary; (b) will provide, in a timely manner, to the 
financial intermediary, or its agent, enough copies of the 19(a) Notice 
assembled in the form and at the place that the financial intermediary, 
or its agent, reasonably requests to facilitate the financial 
intermediary's sending of the 19(a) Notice to each beneficial owner of 
the Fund's shares; and (c) upon the request of any financial 
intermediary, or its agent, that receives copies of the 19(a) Notice, 
will pay the financial intermediary, or its agent, the reasonable 
expenses of sending the 19(a) Notice to such beneficial owners.

V. Additional Board Determinations for Funds Whose Shares Trade at a 
Premium

    If:
    A. A Fund's common shares have traded on the stock exchange that 
they primarily trade on at the time in question at an average premium 
to NAV equal to or greater than 10%, as determined on the basis of the 
average of the discount or premium to NAV of the Fund's common shares 
as of the close of each trading day over a 12-week rolling period (each 
such 12-week rolling period ending on the last trading day of each 
week); and
    B. the Fund's annualized distribution rate for such 12-week rolling 
period, expressed as a percentage of NAV as of the ending date of such 
12-week rolling period, is greater than the Fund's average annual total 
return in relation to the change in NAV over the 2-year period ending 
on the last day of such 12-week rolling period; then:
    1. At the earlier of the next regularly scheduled meeting or within 
four months of the last day of such 12-week rolling period, the Board 
including a majority of the Independent Trustees:
    (a) Will request and evaluate, and the Investment Adviser will 
furnish, such

[[Page 35215]]

information as may be reasonably necessary to make an informed 
determination of whether the Plan should be continued or continued 
after amendment;
    (b) Will determine whether continuation, or continuation after 
amendment, of the Plan is consistent with the Fund's investment 
objective(s) and policies and in the best interests of the Fund and its 
shareholders, after considering the information in condition V.B.1(a) 
above; including, without limitation:
    (1) Whether the Plan is accomplishing its purpose(s);
    (2) The reasonably foreseeable material effects of the Plan on the 
Fund's long-term total return in relation to the market price and NAV 
of the Fund's common shares; and
    (3) The Fund's current distribution rate, as described in condition 
V.B above, compared with the Fund's average annual taxable income or 
total return over the 2-year period, as described in condition V.B, or 
such longer period as the Board deems appropriate; and
    (c) Based upon that determination, will approve or disapprove the 
continuation, or continuation after amendment, of the Plan; and
    2. The Board will record the information considered by it, 
including its consideration of the factors listed in condition V.B.1(b) 
above, and the basis for its approval or disapproval of the 
continuation, or continuation after amendment, of the Plan in its 
meeting minutes, which must be made and preserved for a period of not 
less than six years from the date of such meeting, the first two years 
in an easily accessible place.

VI. Public Offerings

    A Fund will not make a public offering of the Fund's common shares 
other than:
    A. A rights offering below NAV to holders of the Fund's common 
shares;
    B. An offering in connection with a dividend reinvestment plan, 
merger, consolidation, acquisition, spin-off or reorganization of the 
Fund; or
    C. An offering other than an offering described in conditions VI.A 
and VI.B above, provided that, with respect to such other offering:
    1. The Fund's annualized distribution rate for the six months 
ending on the last day of the month ended immediately prior to the most 
recent distribution record date,\5\ expressed as a percentage of NAV 
per share as of such date, is no more than 1 percentage point greater 
than the Fund's average annual total return for the 5-year period 
ending on such date; \6\ and
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    \5\ If the Fund has been in operation fewer than six months, the 
measured period will being immediately following the Fund's first 
public offering.
    \6\ If the Fund has been in operation fewer than five years, the 
measured period will being immediately following the Fund's first 
public offering.
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    2. The transmittal letter accompanying any registration statement 
filed with the Commission in connection with such offering discloses 
that the Fund has received an order under section 19(b) to permit it to 
make periodic distributions of long-term capital gains with respect to 
its common stock as frequently as twelve times each year, and as 
frequently as distributions are specified in accordance with the terms 
of any outstanding preferred stock as such Fund may issue.

VII. Amendments to Rule 19b-1

    The requested relief will expire on the effective date of any 
amendment to rule 19b-1 that provides relief permitting certain closed-
end investment companies to make periodic distributions of long-term 
capital gains with respect to their outstanding common stock as 
frequently as twelve times each year.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-17140 Filed 7-17-09; 8:45 am]

BILLING CODE 8010-01-P
