[Federal Register Volume 64, Number 229 (Tuesday, November 30, 1999)]
[Notices]
[Pages 66945-66947]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-31034]
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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 24156; 812-11756]
Putnam American Government Income Fund, et al.; Notice of
Application
November 23, 1999.
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Notice of an application under section 17(d) of the Investment
Company Act of 1940 (the ``Act'') and rule 17d-1 under the Act to
permit certain joint transactions.
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SUMMARY OF THE APPLICATION: Applicants seek to amend a prior order that
permits the operation of certain joint accounts.
APPLICANTS: Putnam American Government Income Fund, Putnam Arizona Tax
Exempt Income Fund, Putnam Asia Pacific Growth Fund, Putnam Asset
Allocation Funds, Putnam Balanced Retirement Fund, Putnam California
Investment Grade Municipal Trust, Putnam California Tax Exempt Income
Fund, Putnam California Tax Exempt Money Market Fund, Putnam Capital
Appreciation Fund, Putnam Convertible Income-Growth Trust, Putnam
Convertible Opportunities and Income Trust, Putnam Diversified Equity
Trust, Putnam Diversified Income Trust, Putnam Dividend Income Fund,
Putnam Equity Income Fund, Putnam Europe Growth Fund, Putnam Florida
Tax Exempt Income Fund, Putnam Funds Trust, The George Putnam Fund of
Boston, Putnam Global Governmental Income Trust, Putnam Global Growth
Fund, Putnam Global Natural Resources Fund, The Putnam Fund for Growth
and Income, Putnam Growth and Income Fund II, Putnam Health Sciences
Trust, Putnam High Income Convertible and Bond Fund, Putnam High
Quality Bond Fund, Putnam High Yield Advantage Fund, Putnam High Yield
Trust, Putnam High Yield Municipal Trust, Putnam Income Fund, Putnam
U.S. Intermediate Government Income Trust, Putnam International Growth
Fund, Putnam Investment Funds, Putnam Investment Grade Municipal Trust,
Putnam Investment Grade Municipal Trust II, Putnam Investment Grade
Municipal Trust III, Putnam Investors Fund, Putnam Managed High Yield
Trust, Putnam Managed Municipal Income Trust, Putnam Massachusetts Tax
Exempt Income Fund, Putnam Master Income Trust, Putnam Master
Intermediate Income Trust, Putnam Michigan Tax Exempt Income Fund,
Putnam Minnesota Tax Exempt Income Fund, Putnam Money Market Fund,
Putnam Municipal Income Fund, Putnam Municipal Opportunities Trust,
Putnam New Jersey Tax Exempt Income Fund, Putnam New Opportunities
Fund, Putnam New York Investment Grade Municipal Trust, Putnam New York
Tax Exempt Income Fund, Putnam New York Tax Exempt Money Market Fund,
Putnam New York Tax Exempt Opportunities Fund, Putnam Ohio Tax Exempt
Income Fund, Putnam OTC & Emerging Growth Fund, Putnam Pennsylvania Tax
Exempt Income Fund, Putnam Preferred Income Fund, Putnam Premier Income
Trust, Putnam Strategic Income Fund, Putnam Tax Exempt Income Fund,
Putnam Tax Exempt Money Market Fund, Putnam Tax-Free Health Care Fund,
Putnam Tax-Free Income Trust, Putnam Tax Managed Funds Trust, Putnam
U.S. Government
[[Page 66946]]
Income Trust, Putnam Utilities Growth and Income Fund, Putnam Variable
Trust, Putnam Vista Fund, Putnam Voyager Fund and Putnam Voyager Fund
II, each on its own behalf and on behalf of its series (collectively,
the ``Funds''), Putnam Investment Management, Inc. (the ``Adviser''),
Putnam Mutual Funds Corp., and Putnam Fiduciary Trust Company.\1\
\1\ Applicants also seek relief for all registered open-end
management investment companies and their series that are advised in
the future by the Adviser or an entity controlling, controlled by,
or under common control with the Adviser (``Future Companies'').
Applicants state that all investment companies that currently intend
to rely on the requested relief are included as applicants and that
any Future Company will comply with the terms and conditions
contained in the application.
FILING DATES: The application was filed on August 18, 1999. Applicants
have agreed to file an amendment to the application during the notice
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period, the substance of which is reflected in this notice.
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 December 17, 1999 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, Commission, 450 Fifth Street, N.W., Washington,
D.C. 20549-0609. Applicants, c/o Brian D. McCabe, Esq., Ropes & Gray,
One International Place, Boston, Massachusetts 02110-2624.
FOR FURTHER INFORAMTION CONTACT: Emerson S. Davis, Sr., Senior Counsel,
at (202) 942-0714, or George J. Zornada, Branch Chief, at (202) 942-
0564 (Division of Investment Managewment, 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 Commission's Public Reference Branch, 450 Fifth Street, N.W.,
Washington, D.C. 20549-0102 (telephone (202) 942-8090).
Applicants' Representations
1. On October 5, 1992, the Commission issued an order (the
``Original Order'') to applicants under section 17(d) of the Act and
rule 17d-1 under the Act.\2\ The Original Order permits applicants to
operate joint accounts (``Joint Accounts'') that invest in repurchase
agreements and short-term money market instruments, as specified in the
Original Order (``Short-Term Investments''), that have overnight, over-
the-weekend, or over-the-holiday maturities.
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\2\ Investment Company Act Release Nos. 18932 (Sept. 8, 1992)
(notice) and 18998 (Oct. 5, 1992) (order).
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2. Applicants seek to amend the Original Order to permit the Joint
Accounts to invest in Short-Term Investments that have maturities or
remaining maturities of 60 days or less. Applicants state that the
board of trustees of each Fund has determined that permitting the Joint
Accounts to invest in Short-Term Investments with maturities or
remaining maturities of 60 days or less is in the best interests of
each Fund and its shareholders. Applicants also state that any such
investments will be consistent with each Fund's investment policies and
restrictions.
3. Applicants represent that any repurchase agreements entered into
through the Joint Accounts will comply with the terms of Investment
Company Release Act No. 13005 (Feb. 2, 1983), as modified by the
staff's positions relating to repurchase agreements as set forth in
Investment Company Institute (pub. avail. June 15, 1999). The Funds
will not enter into ``hold-in-custody'' repurchase agreements, in which
the counterparty or one of its affiliated persons may have possession
of, or control over, the collateral subject to the agreement, except in
instances when cash is received very late in the business day or would
otherwise be unavailable for investment.
4. Applicants acknowledge that they have a continuing obligation to
monitor the Commission's and the staff's published statements on
repurchase agreements entered into by registered management investment
companies, and represent that the repurchase agreement transactions
entered into through a Joint Account will comply with future positions
of the Commission and its staff to the extent that such positions set
forth different or additional requirements regarding repurchase
agreements entered into by management investment companies. In the
event that the Commission or the staff sets forth guidelines with
respect to other Short-Term Investments purchased by registered
management investment companies, all such investments made through the
Joint Accounts will comply with those guidelines.
5. Applicants therefore request an order under rule 17d-1 under the
Act amending the Original Order under section 17(d) of the Act and rule
17d-1 under the Act.
Applicants' Conditions
Applicants agree that any order granting the requested relief will
be subject to the following conditions:
1. Applicants will comply with all conditions of the Original Order
other than that part of condition 4 restricting a Joint Account to
investing in Short-Term Investments with overnight, over-the-holiday,
or over-the-weekend maturities.
2. All repurchase agreements held through a Joint Account will be
``collateralized fully'' (as defined in rule 2a-7 under the Act) and
will have a remaining maturity of 60 days or less, and all Short-Term
Investments held through a Joint Account will have a remaining maturity
of 60 days or less, each as calculated in accordance with rule 2a-7
under the Act.
3. Short-Term Investments held in a Joint Account generally will
not be sold prior to maturity unless: (a) The Adviser believes the
investment no longer presents minimal credit risk; (b) the investment
no longer satisfies the investment criteria of all Funds participating
in the investment because of a credit downgrading or otherwise; or (c)
in the case of a repurchase agreement, the counterparty defaults. The
Adviser may, however, sell any Short-Term Investment (or any fractional
portion thereof) on behalf of some or all of the Funds prior to the
maturity of the investment if the cost of such transactions will be
borne solely by the selling Funds and the transaction will not
adversely affect other Funds participating in that Joint Account. In no
case would an early termination by less than all participating Funds be
permitted if it would reduce the principal amount or yield received by
other Funds in a particular Joint Account or otherwise adversely affect
the other participating Funds. Each Fund participating Funds. Each Fund
participating in a Joint Account will be deemed to have consented to
such sale and partition of the investments in the Joint Account.
4. Short-Term Investments held through a Joint Account with a
remaining maturity of more than seven days, as calculated pursuant to
rule 2a-
[[Page 66947]]
7 under the Act, will be considered illiquid and subject to the
restriction that no open-end Fund may invest more than 15%, or in the
case of a money market Fund, more than 10%, (or such other percentage
as set forth by the Commission from time to time) of its net assets in
illiquid securities, if the Adviser cannot sell the instrument, or the
funds' fractional interest in such instrument, pursuant to the
preceding condition.
For the Commission, by the Division of Investment Management,
under delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-31034 Filed 11-29-99; 8:45 am]
BILLING CODE 8010-01-M
