[Federal Register Volume 61, Number 108 (Tuesday, June 4, 1996)]
[Notices]
[Pages 28253-28254]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13849]
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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 21990; 811-5703]
Capital Market Fund, Inc.; Notice of Application for
Deregistration
May 29, 1996.
AGENCY: Securities and Exchange Commission (``SEC'').
ACTION: Notice of Application for Deregistration under the Investment
Company Act of 1940 (the ``Act'').
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APPLICANT: Capital Market Fund, Inc.
RELEVANT ACT SECTION: Section 8(f).
SUMMARY OF APPLICATION: Applicant seeks an order declaring that it has
ceased to be an investment company.
FILING DATES: The application was filed on February 23, 1996 and
amended on May 17, 1996.
HEARING OR NOTIFICATION OF HEARING: An order granting the application
will be issued unless the SEC 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 June 24, 1996,
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 writer's interest, the reason
for the request, and the issues contested. Persons may request
notification of a hearing by writing to the SEC's Secretary.
ADDRESSES: Secretary, SEC, 450 Fifth Street NW., Washington, DC 20549.
Applicant: Capital Market Fund, Inc., 523 West Sixth St., Suite 220,
Los Angeles, CA 90014.
FOR FURTHER INFORMATION CONTACT:
Mercer E. Bullard, Staff Attorney, (202 942-0565, or Alison E. Baur,
Branch Chief, (202) 942-0564 (Division of Investment Management,
Officer of Investment Company Regulation).
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee at the
SEC's Public Reference Branch.
Applicant's Representations
1. Applicant is an open-end, diversified management investment
company incorporated under Maryland law and organized in two series:
the U.S. Treasury Money Market Series (``Money Market Series'') and the
Index Series. On November 29, 1988, applicant registered under the Act
and filed a registration statement pursuant to section 8(b) of the Act
and the Securities Act of 1933. The registration statement was declared
effective on May 29, 1992, and applicant commenced an initial public
offering of its shares on November 5, 1992.
2. Applicant served as the investment vehicle for The SuperTrust
for Capital Market Fund, Inc. Shares (``SuperTrust''), a unit
investment trust organized in two series: the U.S. Treasury Money
Market Trust for U.S. Treasury Money Market Shares (``Money Market
Trust'') and the Index Trust for Index Shares (``Index Trust'' or,
collectively with the Money Market Trust, ``Subtrusts'').
3. Securityholders of the Subtrusts had the right to direct the
voting of shares of their respective Series. On September 20, 1995, the
Subtrusts' securityholders voted to amend applicant's Articles of
Incorporation to add a provision that would permit the Board of
Directors (the ``Board'') to redeem shares of each Series of applicant
in connection with its liquidation. On the same date, the Board
authorized the redemption of all shares of applicant.
4. In deciding whether to authorize the liquidation, the Board
considered, among other things, that it was likely that securityholders
would redeem a substantial part of the Fund's assets upon termination
of the SuperTrust, which would make it difficult for each Series of the
Fund to achieve its investment objective and result in an increase in
the Fund's expense ratio. The Board also considered that the investment
adviser to the Money Market Series had notified the Fund that it would
not continue to provide advisory services after November 30, 1995, and
the possibility that it would not be feasible to attract a replacement.
Consequently, the Board determined that it would be in the best
interests of the Fund and its shareholders to authorize the liquidation
of the Fund.
5. On November 3, 1995, an investor holding 98 percent of the Index
Trust redeemed all of its shares of the Trust in exchange for shares of
the Index Series, and concurrently redeemed all of these shares, the
proceeds of which were distributed primarily ``in kind.'' All stocks of
the Index Series were distributed to this investor. The only remaining
assets of the Index Series were cash and cash equivalents, the accrued
income from which through November 5, 1995, were included in the net
asset value calculated on November 3, 1995. Similarly, accrued income
through November 5, 1995, was included in the net asset value of the
Money Market Series calculated on November 3, 1995. The net asset value
[[Page 28254]]
for each Series after November 3, 1995 thus did not change prior to the
termination of applicant.
6. On November 5, 1995, the Subtrusts terminated and their shares
were redeemed in exchange for shares of their respective Series.
Concurrently, all shares of each Series were redeemed at their net
asset value determined on November 3, 1995. At the time of the
redemption, all shares of each Series were held by the respective
Subtrust. All redemption proceeds were in cash and were deposited on
November 6, 1995, with the SuperTrust's trustee for subsequent
distribution to securityholders.
7. Applicant has no assets, or debts or other liabilities. In
connection with obtaining shareholder approval to liquidate the Fund,
applicant incurred $20,998 in expenses for accounting and legal
services and printing and distribution costs, which were allocated
between the Money Market Series and the Index Series in proportion to
their relative aggregate net assets.
8. There are no shareholders of applicant to whom distributions in
complete liquidation of their interests have not been made. Applicant
is not a party to any litigation or administrative proceeding.
Applicant has no securityholders and is not now engaged, nor does it
propose to engage, in any business activities other than those
necessary for the winding up of its affairs.
9. Applicant intends to file a certificate of dissolution or
similar document pursuant to the laws of the State of Maryland.
For the SEC, by the Division of Investment Management, under
delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 96-13849 Filed 6-3-96; 8:45 am]
BILLING CODE 8010-01-M
