[Federal Register Volume 59, Number 226 (Friday, November 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29062]
[[Page Unknown]]
[Federal Register: November 25, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Rel. No. IC-20716; No. 811-3154]
Northwestern Mutual Balanced Fund, Inc.
November 18, 1994.
AGENCY: Securities and Exchange Commission (``SEC'' or ``Commission'').
ACTION: Notice of Application for an Order under the Investment Company
Act of 1940 (``1940 Act'').
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APPLICANT: Northwestern Mutual Balanced Fund, Inc.
Relevant 1940 Act Section: Order requested under Section 8(f) of the
1940 Act.
SUMMARY OF APPLICATION: Applicant seeks an order declaring that it has
ceased to be an investment company as defined by the 1940 Act.
Filing Date: The application was filed on September 1, 1994. An
amendment to the application was filed on November 15, 1994.
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 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 December
13, 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 requestor's interest,
the reason for the request, and the issues contested. Persons may
request notification of a hearing by writing to the Secretary of the
SEC.
Addresses: Secretary, Securities and Exchange Commission, 450 5th
Street, NW., Washington, DC 20549. Applicant, 720 East Wisconsin
Avenue, Milwaukee, Wisconsin 53202.
FOR FURTHER INFORMATION CONTACT:
Yvonne M. Hunold, Senior Counsel, at (202) 942-0670, Office of
Insurance Products (Division of Investment Management).
SUPPLEMENTARY INFORMATION: Following is a summary of the Application;
the complete Application is available for a fee from the SEC's Public
Reference Branch.
Applicant's Representations
1. Applicant, a Maryland corporation, is registered under the 1940
Act as an open-end diversified management investment company.
2. On March 18, 1981, Applicant filed a notification of
registration under Section 8(a) of the 1940 Act and a registration
statement under the Securities Act of 1933 and Section 8(b) of the 1940
Act registering $25 million of common stock, all of one class (File No.
2-71304). The registration statement became effective on December 14,
1981, the date the public offering commenced.
3. On November 4, 1993, Applicant's Board of Directors unanimously
approved an agreement and plan or reorganization (``Plan'') between
Applicant and Northwestern Mutual Series Fund, Inc. (``Series Fund''),
a registered, open-end management investment company.\1\ The Plan was
approved by the Trustees of Northwestern Mutual Life Insurance Company
(``Northwestern Life''), Applicant's sole shareholder, on September 22,
1993. The Plan provides for Applicant to exchange all of its assets for
shares of the Balanced Portfolio (``Portfolio''), a corresponding
portfolio of the Series Fund. Applicant states that the primary purpose
of the Plan was to eliminate the inefficiency of operating two
portfolios with identical investment objectives and policies.
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\1\By order dated May 3, 1994, exemptive relief was granted by
the Commission under Section 17(b) from the provisions of Sections
17(a)(1) and 17(a)(2) of the 1940 Act, and under Section 6(c) from
the provisions of Sections 9(a), 13(a), 15(a) and 15(b) of the 1940
Act and Rule 6e-2(b)(15) thereunder, permitting Applicant to
exchange its assets for shares of the Portfolio of equivalent value
(Rel. No. IC-20273).
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4. On March 30, 1994, proxy materials concerning the Plan were
distributed to certain Northwestern Life's variable annuity contract
owners and payees. At Applicant's shareholders' meeting on April 27,
1994, Northwestern Life voted its shares of Applicant in accordance
with the instructions it received from its contract owners and payees,
as required by the provisions of the contracts. Of its total
1,257,811,049.68 shares of stock, representing shares outstanding as of
the record date of January 31, 1994 entitled to vote, Northwestern Life
voted 1,178,519,938.55 shares, or 93.8%, in favor of the Plan, and
24,433,212.51 shares, or 1.9%, against the Plan. Northwestern Life
abstained from voting 54,857,898.62 shares, or 4.3%.
5. On May 2, 1994, Applicant transferred substantially all of its
assets, consisting of 1,250,574,720 shares of common stock, with a net
asset value per share of $1.36, for an aggregate value of
$1,705,465,964, to the Portfolio.\2\ In exchange for its assets,
Applicant received and distributed to its shareholder 1,330,564,679
shares of the Portfolio, with a total value of $1,705,465,964. The
exchange resulted in the complete liquidation of Applicant. The value
of Applicant's assets and the value of the assets and shares of the
Portfolio were calculated as of the close of business on the New York
Stock Exchange on May 2, 1994.
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\2\The difference between the total 1,257,811,049.68 shares
voted on April 28, 1993, and the 1,250,574,720 shares outstanding on
May 2, 1994, the date immediately preceding the liquidation and
merger of Applicant, is a result of intervening issuance and
redemption of Applicant's shares.
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6. Northwestern Life paid all expenses incurred in connection with
the Plan. These expenses totaled approximately $407,185, and consisted
primarily of printing and mailing costs and filing fees. No brokerage
commissions were paid.
7. Applicant has retained no assets and has no security holders.
Applicant does not have any debts or other liabilities which remain
outstanding and is not a party to any litigation or administrative
proceeding.
8. Applicant has not, within the last 18 months, transferred any of
its assets to a separate trust, the beneficiaries of which were or are
security holders of Applicant.
9. Applicant is not now engaged, nor does it proposes to engage, in
any business activities other than those necessary for the winding-up
of its affairs. Applicant intends to file, after receipt of the relief
requested, a certificate of dissolution or similar documents in
accordance with state law.
10. Applicant states that it is current with all of its filings
under the 1940 Act, including all Form N-SAR filings for each period
for which such filing was or is required.
For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 94-29062 Filed 11-23-94; 8:45 am]
BILLING CODE 8010-01-M
