[Federal Register Volume 62, Number 85 (Friday, May 2, 1997)]
[Corrections]
[Page 24160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: X97-50502]
[[Page 24160]]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 230
[Release Nos. 33-7399; IC-22529; File No. S7-18-96]
RIN 3235-AH03
Proposed New Disclosure Option for Open-End Management Investment
Companies
Correction
In proposed rule document 97-5376 beginning on page 10943 in the
issue of Monday, March 10, 1997 make the following corrections:
(1) On page 10946, in the first column, footnote 27
should read
27 Proposed rule 498(c)(1). The cover page also would
include the date of the profile. See infra note 84 and accompanying
text regarding the proposed dating requirements. If the profile is
distributed electronically or as part of another document (e.g.,
when the profile is printed in a magazine), rule 498 would require
cover page information to appear at the beginning of the profile.
(2) On the same page, in the third column, footnote 33
should read:
33 Proposed rule 498(c)(2)(i) (incorporating Item
2(a) of proposed Form N-1A). In providing this disclosure, a fund
could refer to its investment objectives as investment goals.
(3) On page 10947, in the third column:
(a) Footnote 45 should read:
45 The 1996 Profile Letter, supra note 9, at 2,
requires a fund to disclose without further explanation that it is
non-diversified.
(b) Footnote 46 should read:
46 Proposed rule 498 (c)(2)(iii) (incorporating Item
2(c) of proposed Form N-1A).
(c) Footnote 47 should read:
47 The 1996 Profile Letter, supra note 9, at 2-3,
requires the bar chart and table to appear under a caption relating
to a fund's past performance. To help investors use the information
in the bar chart and table, the proposed rule would require a fund
to explain how the information illustrates the fund's risks and
performance. Item 2 of proposed Form N-1A would provide the
following example of this explanation: This information illustrates
the fund's risks and performance by showing changes in the fund's
performance from year to year and by showing how the fund's average
annual returns for one, five, and ten years compare to those of a
broad measure of market performance. A fund also would be required
to disclose that how the fund has performed in the past is not
necessarily an indication of how the fund will perform in the
future.
(d) Footnote 48 should read:
48 See Risk Concept Release, supra note 5.
(4) On page 10948, in the first column, Footnote 51
should read:
51 See 1996 Profile Letter, supra note 9, at 3
(permitting a fund, at its option, to compare its returns to those
of an appropriate broad-based securities market index).
(5) On the same page, in the second column:
(a) Footnote 56 should read:
56 Proposed rule 498(c)(2)(iv) (incorporating Item 3
of proposed Form N-1A). See also Item 2(a) of Form N-1A.
(b) Footnote 57 should read:
57 See Form N-1A Release, supra note 1 (proposing
amendments to improve fee table disclosure).
(6) On the same page, in the third column:
(a) ``Other Disclosure Requirements'' should read ``3. Other
Disclosure Requirements''.
(b) Footnote 58 should read:
58 Proposed rule 498(c)(2)(v). Consistent with Item
6(a)(2) of proposed Form N-1A, rule 498 would not require
information about the portfolio manager of a money market fund or an
index fund.
(c) Footnote 59 should read:
59 See also ICI Survey Letter, supra note 10, at 9
(recommending that the profile include this information).
(d) Footnote 61 should read:
61 The 1996 Profile Letter, supra note 9, at 3,
permits a fund to disclose that 3 or more persons manage the fund's
portfolio, without regard to the percentage of the portfolio managed
by any one person.
(7) On page 10949, in the first column:
(a) Footnote 64 should read:
64 Information about a fund's cash management
practices generally would not be disclosed in the section of the
profile that discusses the fund's main investment strategies. See
Form N-1A Release, supra note 1 (prospectus disclosure would focus
on a fund's principal strategies, which generally would not include
the fund's cash management practices).
(b) Footnote 65 should read:
65 See 1996 Profile Letter, supra note 9, at 3
(permitting a fund to provide disclosure to the effect that 3 or
more sub-advisers manage the fund's portfolio without regard to the
percentage of the portfolio managed by any one sub-adviser). To
further limit the scope of this exception, a sub-adviser solely
responsible for managing a fund's cash positions would not be
counted in determining whether 3 or more sub-advisers manage the
fund's portfolio.
(8) On the same page, in the second column footnote 66
should read:
66 Proposed rule 498(c)(2)(vi), (vii).
(9) On the same page, in the third column:
(a) ``Application to Purchase Shares'' should read ``4. Application
to Purchase Shares''.
(b) Footnote 69 should read:
69 Proposed rule 498(c)(2)(viii). If a fund, as a
result of its investment objectives or strategies, expects its
distributions primarily to consist of ordinary income (or short-term
capital gains that are taxed as ordinary income) or capital gains,
the fund would be required to provide disclosure to that effect.
(10) On page 10950, in the first column ``Disclosure Safeguards''
should read ``C. Disclosure Safeguards''.
(11) On page 10952, in the first column:
(a) ``General Request for Comments'' should read ``III. General
Request for Comments''.
(b) Footnote 98 should read
98 Proposed rule 498(c)(4).
(12) On the same page, in the third column ``Summary of Initial
Regulatory Flexibility Analysis'' should read ``V. Summary of Initial
Regulatory Flexibility Analysis''.
BILLING CODE 1505-01-D
