RegAlert2016-03-24
Added · Updated
SEC Division of Investment Management staff letter: SPDR S&P Dividend ETF
The SPDR S&P Dividend ETF requests assurances that the SEC Division of Investment Management will not recommend enforcement action under Sections 12(d)(2) and 12(d)(3) of the Investment Company Act of 1940 if the Fund invests in issuers exceeding specific ownership thresholds. Specifically, the Fund seeks to own more than 10% of the total outstanding voting stock of an insurance company and purchase more than 5% of an outstanding class of equity securities of an issuer deriving more than 15% of its gross revenues from securities-related activities. The Fund argues these investments are consistent with the protective intent of the Act because its indexing strategy is non-volitional and it employs safeguards against control and conflicts of interest.
SEC published 7 documents in the last 30 days — get each new one by email the day it lands.
Morgan Lewis
W. John McGuire
Partner
+1.202.373.6799 john.mcguire@morganlewis.com
ICA Section 12(d)(2)
ICA Section 12(d)(3)
Associate Director and Chief Counsel
Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549
Re: Index-Based Funds and Sections 12(d)(2) and 12(d)(3) of the Investment Company Act of 1940 Dear Mr. Scheidt:
We request assurances that the Division of Investment Management of the U.S. Securities and Exchange Commission (the "Commission") will not recommend any enforcement action to the Commission under Sections 12(d)(2) and 12(d)(3) of the Investment Company Act of 1940, as amended (the "1940 Act"), if our "index fund" client, consistent with its investment objective and restrictions, invests such that it may (i) own more than 10% of the total outstanding voting stock of an insurance company and/or (ii) purchase more than 5% of an outstanding class of equity securities of an issuer that, in its most recent fiscal year, derived more than 15% of its gross revenues from securities related activities (an "Equity Issuer"). We believe that such investments, as described herein, are consistent with the protections that Sections 12(d)(2) and 12(d)(3) are intended to provide.
I. SPDR Series Trust and the SPDR S&P Dividend ETF
SPDR Series Trust, a registered open-end investment company under the 1940 Act, currently offers a number of investment portfolios that seek to track the performance of specified market sectors represented by various indexes sponsored by index providers that are not affiliated with the funds or the funds' investment adviser, SSGA Funds Management, Inc. ("SSGA FM"). One such Fund, the SPDR S&P Dividend ETF, a portfolio of the SPDR Series Trust, is referred to in this letter as the "Fund." The Fund's shares are listed for trading on the NYSE Arca, Inc. The shares trade on the NYSE Arca, Inc. at prices based on a current bid/offer market, which may differ from the shares' net asset value. The Fund will issue and redeem shares, called Creation Units, at net asset value in Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 0 +1.202.739.3000 United States 0 +1.202.739.3001
Read the rest free, and get an email when SEC publishes again
Lineage: In force
Source: Securities and Exchange Commission — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
More like this from SEC
SEC published 7 documents in the last 30 days. We email you each new one the day it's published.