SEC Division of Trading and Markets no-action letter: HealthShares Emerging Cancer Exchange-Traded Fund and HealthShares Cardio Devices Exchange-Traded Fund

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
..
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. ) DIVISION OF
:..iRKET REGULATION
Domenick Pugliese, Esq.
Paul, Hastings, Janofsky and Walker LLP
75 E. 55th Street
New York, NY 10022
Re: Hea,[thShare.s Emerging Cancer Exchange.,.Traded Fund and HealthShares Cardlo Devices Exchange-Traded Fund FileNo. TP 07-31 Dear Mr. Pugliese:
In your lett.er dated January 17, 20071, as supplemented by conversations with the staff of the Division ofMarket Regulation ("Staff'), HealthShares, Inc. (the "Company") on behalfof itself, the HealthShares Emerging Cancer Exchange-Traded Fund andHealthShares Cardio Devices Exchange-Traded Fund ("the Funds"), the New York Stock Exchange, and any other . Exchange on which the HealthShares may subsequently trade, and persons or entities engaging intransaetiorui in the HealthShares,requests exemptive,.interpretive, or no-action advice regarding Rules lOa-I, 10b-17, 14e-5 under the Exchange Act, Rules 101 and lOiofRegulatio!1 . M,and Rule 200(g) ofRegulation SHO, in connection with secondarymarket transactions in HealthShares on the NewYork Stock Exchange or on any other Exchange on which the HealthShares may subsequently trade, and the creation and redemption ofCreation Units ofthe Funds. HealthShares, Inc. is an open-end managerrient investment cOnipany that was organized as a Maryland corporation on February 8, 2006. HealthShares, Inc. has filed aregistration . statement for the .Foods with the Commission, which was declared effective by the Commission 011 January 12,2007.2 Each Fund will invest at least 90% ofits assets ill the common stocks of companies in the Underlying Index·(orin American DepositaryReceipts or Global Depositary Receipts based on securities ofintematiomil companies in the Underlying Index). Each Fund will attempt to replicate the Underlying Index by matching theweighting ofsecurities in its portfolio with such securities' weightings in the Underlying Index. The investrnentobjective of We have enclosed a photocopy of your letter. Each defined term in this letter has the same meaning as . defmed in your letter, unless we note otherwise. 2 File Nos. 333-131842 and 811-21855.

3
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Domenick Pugliese, Esq.
Paul, Hastings, Janofsky and Walker LLP each Fund is to provide investment results that, before expenses, correspond generally to the total return ofthe relevant Index. 3 Response:
Rule 10a-1
Rule 200 ofRegulation SHO defines "short sale" and Rule 10a-1 under the Exchange Act governs short sales generally. Paragraph (a) ofRule 10a-1 covers transactions in any security registered on a national securities exchange, iftrades in such security are reported in the consolidated transaction reporting system, and prohibits short sales with respect to these securities unless such sales occur on a "plus tick," (that is, a price above the price at which the immediately preceding sale was effected), or "zero-plus tick," (that is, at the last sale price ifit was higher than the last different price). Rule 1Oa-1 is designed to prevent the market price of a stock or other "reported security," as defmed in Rule 11Aa3-1(a)(4) under the Exchange Act, from being manipulated downward by unrestricted short selling. On the basis of your representations and the facts presented, in particular the composite and derivative nature ofHealthShares, it would not appear that trading in HealthShares would be susceptible to the practices that Rule 10a-1 is designed to prevent. In particular, :the Company anticipates that the market value ofHealthShares will rise or fall based on changes in the net asset value ofthe component securities ofthe Underlying Indices and supply and demand. Accordingly, theCommission hereby grants an exemption from Rule 10a-1 to permit sales of HealthShares without regard to the "tick" requirements ofRule lOa-I. We note that the exemption from Rule 1Oa-1 would not apply to secondary market portfolio sales ofcomponent securities made in connection with the redemption ofthe HealthShares. In addition, this exemption is contingent upon the Funds maintaining at least 20 component stocks. Rule 200(g) ofRegulation SHO Rule 200(g) ofRegulation SHO provides that a broker-dealer must mark all sell orders of any equity security as "long," "short," or "short exempt." Rule 200(g)(2) requires that a ,short . sale order must be marked "short exempt" ifthe seller is relying on an exception from the tick test ofRule 10a-1 ofthe Exchange Act or any short sale price test of any exchange or national securities association. Accordingly, in conjunction with the exemption granted above to permit sales of HealthShares without regard to the "tick" requirements ofRule lOa-I, on the basis of your representations and the facts presented, and without necessarily concurring in your analysis, the The HealthShares™ Emerging Cancer Exchange-Traded Fund tracks the performance ofthe HealthShares™ Emerging Cancer Index and the HealthShares™ Cardio Devices Exchange-Traded Fund tracks the performance ofthe HealthShares™ Cardio Devices Index.

Domenick Pugliese, Esq.
Paul,. Hastings, Janofsky and Walker LLP
Staffwill not recommend to the Commission enforcement action under Rule 200(g) of Regulation SHO if a broker-dealer marks. "short," rather than "short exempt," a short sale that is effected in HealthShares, subject to the following conditions:
1. For each exempt short sale, the various. market centers that execute such sales have.
instituted procedures to "mask". the short sale character ofthe transaction so that they are executed as. short exempt~
11. Such market centers monitor on a regular basis to confirm that any such product or
transaction continues to meet the conditions for the exemptive relief and re-institute the price test for any product or transaction that fails to satisfy such conditions; 111.. A broker-dealer executing exempt short sales will mark such sales as. "short,". and in no event will such sales be marked "long;".and IV.. Themarket centers will maintain an audit trail of all such trade executions,. which is capable ofbeing produced and subject to review upon request by the Commission and other appropriate. regulatory authorities. Regulation M Redeemable securitiesissued by an open-end management investment company are excepted from the.provisionsofRule 101 and 102. ofRegulation M.. The Commission granted .the Company exemptions from certain provisions ofthe Investment Company Act of 1940in orderto permit theCompany to register as. an open-end investment company and to issue shares that are redeemable only in CreationUnit size aggregations ofHealthShares. Rule 101 ofRegulation M Generally, Rule 101 ofRegulationM is an anti-manipulation regulation that, subject to 'certain exemptions, prohibits any "distribution participant". and its "affiliated purchasers" from bidding for, purchasing, or attempting to induce any person to bid for or purchase any security which is the. subject of a distribution until after the. applicable restricted period except as specifically permitted in the. Regulation.4 .The provisions ofRule 101 ofRegulation M apply to 'underwriters,. prospective. underwriters,. brokers,. dealers,. or other persons who have agreed to participate or are. participating in a distribution ofsecurities.. On the. basis of your representations and the. facts presented, particularly that the Company is a registered open-end management investment company that will continuously redeem at net asset value Creation Unit size aggregations ofHealthShares; and the secondary market price ofthe HealthShares. should not vary substantially from the net asset value ofsuch HealthShares, which is based on the value ofthe component securities in the underlying Index and will be computed on a daily basis, the Staffhereby confirms that the Company is. excepted under paragraph (c)(4) ofRule 101 ofRegulationM,. thus. permitting persons who may be 4 17 CFR 242.101.

5
"I
Domenick Pugliese, Esq.
Paul, Hastings, Janofsky and Walker LLP deemed to be participating in a distribution ofHealthShares to bid for or purchase HealthShares during their participation in such distribution.5 The Staff also confirms. the interpretation ofRule 101 ofRegulation M that a redemption ofCreation Unit size aggregations ofHealthShares and the. receipt of component securities in exchange therefor by a participant in a distribution ofHealthShares would not constitute. an "attempt to induce any person to bid for or purchase a covered security, during the applicable restricted period" within the meaning ofRegulation M, and therefore would not violate Regulation M. Rule. 102 ofRegulation M Rule 102 ofRegulation M prohibits issuers, selling security holders, or any affiliated purchaser ofsuch person from bidding for, purchasing, or attempting to induce any person to bid for or purchase a covered security during the applicable restricted period in connection with a distribution ofsecurities effected by or on behalf of an issuer or selling security holder. Rule. 100 ofRegulation M defines. "distribution" to mean any offering ofsecurities that is distinguished from ordinary trading transactions by the magnitude ofthe offering and the presence ofspecial selling efforts and selling methods. On the basis. of your representations and the facts presented, particularly that the Company is a registered. open"':endmanagement investment company that will redeem at net asset value.Creation Units ofHealthShares, the Staffhereby confirmsthat the Company is excepted under paragraph (d)(4) ofRule. 102 ofRegulationM, thus permitting the Fundsto redeem . HealthShares during the continuous offering ofHealthShares. Rule.14e-5 Rule 14e-5under the Exchange Act, among other things, prohibits a person making a tender offer or exchange offer for any equity security from directly or indirectly, purchasing or arranging to purchase any subject orrelated securities except as part ofthe offer, from the time. the offer is publicly announced. until its expiration. We note that Regulation M does not prohibit a distribution participant and its affiliated purchasers from bidding for and purchasing component stocks in accordance with the exceptions contained in paragraphs (b)(6) and (c)(l) ofRule 101. Rule 101(b)(6)(i) excepts basket transactions in which bids or purchases are made in the ordinary course ofbusiness in connection with a basket of20 or more securities in which a covered security does not comprise more that 5% ofthe value ofthe basket purchased. Rule 101(b)(6)(ii) excepts adjustments to such a basket made in the ordinary course ofbusiness as a result of a change in the composition of a standardized index. Also, Rule 101 (c)(l) excepts transactions in actively-traded securities, that is, securities that have an average daily trading volume value of at least $ 1 million and are issued by an issuer whose common equity securities have a public float value of at least $150 million;
providedhowever, that such securities are not issued by the distribution participant or an affiliate ofthe distribution participant.

6
7
Domenick Pugliese~ Esq.
Paul, Hastings~ Janofsky and Walker LLP .
Rule 14e-5 explicitly includes dealer-managers within the rule's definition of "covered person." Accordingly~ while acting as dealer-manager of a tender offer for a component stock, a dealer-manager is prohibited from purchasing or arranging to purchase that component stock until the expiration ofthe. offer. On the basis ofyour representations and the facts presented~ particularly that purchases or redemptions ofHealthShares would not appear to result in the abuses at which Rule 14e-5 is directed, and that any bids. or purchases by dealer-managers would not be effected for the. purpose offacilitating a tender offer, the Commission hereby grants an exemption from Rule 14e-5 to permit any person acting as dealer-manager ofa tender offer for a component stock to:
(I) redeem HealthShares. in Creation Unit size aggregations to the. Company for component stocks that may include. a security subject tothe tender offer; and (2) purchase HealthShares during such offer.6 . Rule lOb-I? Rule IOb-17, with certain exceptions, requires an issuer of a class ofpublicly traded . securitiesto give notice of certain specified actions (for example~ a dividend distribution, stock split,orrights offering) rehlting to such class ofsecurities. in accordance with Rule IOb-17(b). On the basis of yourrepresentations and the. facts presented~ particularly that the :Commission has determined togrant an exemption from the InvestmentCompany Actor1940 to registertheTrust as an open-end management investment company notwithstanding the fact that . it issues HealthShares with limited redeemability, the Commission hereby grants an exemption .from the requirements ofRule lOb-I? to the Trust with respect to transactions in HealthShares.7 The foregoing exemptions from Rules IOa-l, 1Ob-17, 14e-5 under the Exchange Act, interpretations ofRulesTO1 and 102 ofRegulation M, and no-action positions taken under Regulation SHO are based solely on your representations and the facts presented to Staff, and are strictly limited to the application ofthose rules to transactions involving the HealthShares under the. circumstances described above. and in your letter.. Such transactions. should be discontinued, pending presentationofthe facts for our consideration, in the event that any material change occurs. with respect to: any ofthose facts or representations. Moreover, the. foregoing exemptions from Rules. lOa-I, IOb-17, and 14e-5 under the Exchange Act,. interpretations Rules 101 and 102 ofRegulationM and no-action positionS taken under Regulation SHO are subject to the. The. Staff also confirms its no-action position under Rule 14e-5 when a broker-dealer (including a member or member organization ofthe. AmEx or other national securities exchange), acting as a dealer-manager of a tender .offer for a component stock, purchases such component stock in the secondary market for the. purpose oftendering them to purchase a Creation Unit size aggregation ofShares,. ifsuch transactions are effected as adjustments to such a basket in the ordinary course. ofbusiness as a result of a change in the composition ofthe. relevant index. We also note that compliance with Rule. IOb-17 would be impractical in light ofthe. nature ofthe Funds. This is because it is not possible.for the Trust to accurately project ten days in advance what dividend, if any, would be. paid on a particular record date.

Domenick Pugliese, Esq..
Paul, Hastings, Janofsky and Walker LLP
Page 6.of6
condition that such transactions in HealthShares, any component security, or any related securities are not made for the purpose. of creating actual, or apparent, active trading in or raising or otherWise affecting the price ofsuch securities.. These exemptions, interpretations, and no-action positions are subject to modification or revocation if at any time the Commission or Staff determin~sthat such action is necessary or appropriate in furtherance ofthe. purposes. ofthe Exchange Act. In addition, persons relying on these exemptions, interpretations,. and no-action positions are directed to the anti-fraud and anti￾manipulation provisions ofthe Exchange Act, particularly Sections 9(a), 1O(b), and Rule 10b-5 thereunder. Responsibility for compliance with these and other provisions ofthe federal or state securities laws must rest with persons. relying on these exemptions, interpretations, and no-action positions.. The Staff expresses no view with respect to other questions that the proposed transactions may raise, including, but not limited to, the adequacy of disclosure concerning, and the. applicability ofother federal and state. laws to, the proposed transactions. For the Commission, by the Division ofMarket Regulation, pursuant to delegated authority, ~~~es A.. Brigagliano Associate Director

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@n(:)~t9per24~2QQ~, .ipJlletteriss\leclJqP(.)w~$lla,f~§En,g~'-1:rllded. Fll1ldl)llst5 (the'cpo,w:erShatesLetter"');the C0mmissiangranted xeliefwith respecttothe aforemen￾tioned E~£~t1'ge J~tl?r()Y~i()11!3a,11.I:We§.•Qt~e9nti~r. *!srelief sl.1pe1:(:f~g.1:e1iefth~t had been l'reviouslygranted totheAmericaflStockExchang~,LLC("AMEX"),ETFs lj~eda,l1dtti~de<i.qt1an p."g}jal1ge 1p,aY'1:cJyuPPt1 tPe ,re1i!f£g1:;lQ.ti if).. t4e:PoWelZSha,1:~s~t￾ter\vltholtt.the,csublnission.ofa 1934Actexe~ptiveln()-acti~n tequesti£stlchETFs meet c;ertllin· OPllQitiol1s'b1cl!?;thefQU()~!?;: .)·atle~st7~%()ttheETFllll.1.st~e,com￾prised .ofc?mpOnenfstoc:'kS thathaveamittifuum'.average dai1:yltil.difigV'dlUfueC(.ADW'~l ofatfeast $1tllill10h durin:~eachdfthe'p!~yi()l.ts'two··mo1)thsoftt;ldin~priorto:'t0fiW," tionofthe1'¢levant l?;TF ana,.atleast 70% oftheETFmusthe.compcisedofcompoiieht Stgcksth~thllvea n::»nimtl111pul1l1cflQat vahteo'fatleast $lSOm.illic)t1;p:rovideu, however, ifthe ETFhas 200Qf~OreC()l11,!l.enfs~()cks~...then5(J07o;()fth¢cofup()rientst()cksdnus't meet.the$ltnillioll ADW anCl..$151JiiJ.i1fio:n ptlblic flQat tb..t:esho1ds. 7 Altht)QghtheE1.li1ds \vill J)~1ist~d~i:lthe N}rS:E, t1leE~c1~ •• ~9i:l9friJ.eetthe #..qtm~i1lehts()fth~·Fd'Y~t~h~~¢s Lettet setfotthaboye,·a~:·theFut1qs",iUli()t1U¢et .theaxeragedai!Y .tta<lin.gvdlW!leM~ P\lbJiq'f1()a1;cd,tetia}lTh~refQte'. theFllfl-.~cannoptely()11tl1et¢liefpr()vldedip tlieP(jy.r-- S~chs!echtl(}lQgyIild~stty~l1.iltiti1¢~aNetworking,.GQtdmanSac~sTechn()lQgyJg~ttY Semiconductot.'GoldtnanSachsIT'ecnnolQgy Industry'S6ftware, R'ussellMidcal'.R.ussell . l\1i.dp Gn)Yl1;l1..>ao1l.Q R.;Q$$tll&!idplp Value Illdex Funds.; (13)LizaM, Ray. dated Matc:h 13.;200'1, FileJNo;TP01-106,;,f()ttheiShate§Goldh1an·SachsTedIhOlQgy·IndexFtin~; (J4)ja111es'J:'. McIia1e,<igt,ed FeptIJl411, ?OOl,·FUe.NQ; 1'POI--GO, fQ+theiS4~:t:es,CQhel'l.~ SteefsR6tlfyMnjOrs aridthe·NasdaqBiotecln'iOIQgy.Il1dexFunds;/p&) MafyJOlfl1 HOene. elated S¢ptemb¢r S, 2(10.Q; Ejl~\NQ .. TPQQ-135~nd l)ece1l1per 1,2QQO. EjleNp; TJ?{}1-16~ respectively for theiShates S&tl? tOOand~&PG10ball0p Index Funds; and (16)]<''lfb1een FlMQri:~ty.}(latedM~y" 16,. 2()(Je),FileDJ.o. TPOO..,3Q fot3'5iShatellFund$. 5·.~e~JeJr·ft~~~~~ii.•.~g¥aQ.q; ...£\s~i~~~~~1reet9!.··pfltetJ}egWafJpq; ••t()$~t M.Sttauss~ E§q.~iaated()ctobet24, 20f)o. 6Lettettto1i1J~trres.~,~~~gli~l1Q, Assi:>tlllltDir~t~1:;.Divisl0n ot~bltketR¢tipn, ..t(r (mute Pi McGrath,VicePtesidentarid;SpecL-tlGounsel, k\iIEX,:dated AugllSf17,'2001 (the«j\1\rE¥tett;¢1:~'). . 7meC;drl11tiisSiollpas>gt~ntedclasSfeliefWit4J:espe~t to $el;~on.11•. (d}(1) an(lRUles1()b￾tQ; IhUi2.1.5.<.:1-$ ai1~115,cl·;() ofthe E~chill1geA¢tt()cel't~inQl.1aiirymg;.EJ'F$;$'ee, letterfi:qmqatnerille Nfc(dWre,ChiefGoullse1,I)iV!slon· ofMar}(efRe~tioll)to the Se￾qlritiesJ1:ldu$tryAssot;:iatlQp-.daJ,e<l N<>Y.e1)1het.21, 2(J05~ The Ftli14s trreetthe reqllite,- ment.~.Q.f"Q.I}~1ifyin,gE'rFs)J l.1t1der this lettel'm)da:rethere£oretelyipg
on this lette.rWith te$pecttdth.e$eptovislons. II E.xcept f'orthemhllmUnI average daily tradingvolUhie and public float criteria ofthe /, .). ,toUt, .,.

:Mr.Jahies A. Brigagliano
J~nua:ry 17; 2001
PageS
¢J:Shar,e$t¢ttet'With):¢s'P¢¢t:t~Rules/l0a'71,.10b-17,Md 14e..5.Qftlie.If,k¢1i~geA¢t'.Md .• ~ll~es JQl~pd .lQ29fR~gWationMMdRule40q,(g)qf~egW~tionSI-1Qp1:omWgatedull￾d¢rithe Exohil1ge.ActandtheCoropany,oilhehalfofthe<Funds,nerehyteqtleats,·telief Pr9l:1:lthe ·aJfotel:l:le1l.ti9ll.e4il$allgeActUlles. 'TheConipanyuotes the~ieationaridlssuatiG~h¥'anfuvesttnent cornj>at1yofshateso! ~t~;tllatin<livid~a11~tra~eonal1:Exch#~ge,b~tthatil1.13Ige:~ggregations:pan•.Pe .pur~ chasea.ftom:itndretleel'i1ed \v1ththeissuing.hivestrnent:company,isno>longer novel. ''The; C()mWs$ionha$.£o~l110j;ethllnll.·qCGtd¢c9nsiqe.(edllnq.llpp(()VecllJllltly:sw:p.proposals. S6fuc.b£1:hese·exchinge-tfadedprcidiicts••.navedJeen.•.ftitdirig.puhlicly-f6tyeirs,;aridthe Compa:nyisnotwwareofanya.buses associated'with them. Tndeec,l,sevcl:iLof theprod~ , uctsl'l.a'\r';heefisoembiaceal)yih'V'est6ts.th~t theyroutIDely are'among,the highestvohi11lC sepMti¢ll/QIlthe E'$.c,h@$QIl\Yhi,¢h theytt!lde. A. The Funds EhE*Ild·se,d~s t.P O:flckth.epet{On:l:la.nce; heto~efees ~de~peIl$es,ofa. pat:t1cwar be1IchfuitkiildexP The Fiirids' each inte1idtb qualify as a '''tegumtedmvestmerifeoni.. pa.p,y" £'Pt: plltppsesofthelnt¢1'l1a.lRevenue' Coell:). Each Fund will invest atIeast900Jc, ofits'ass,ets in the common stocks of companies in the Underlying Index, or in Amei"ican Depositary Receipts ("ADRsf') or Glohal Depbsitaty' Receipts ("GDRs") based on,secutities ofintetna~orial companies in the Underlying In~ clex. Becatis.e each Underlying Index is comprised o111y ofstocks asindita:ted by its, name 1111: 'c< • .'", '. • d" "th H' ''I'M n,~ " (C..g')9¥e1l1:ergmKcaIlcerc;ompa1il,e~,a,re cQem. e, ,e es' Utll~gtng Catitet Index Furid) this means tllateaeh Fund will fuvest at leas: .' 0 dtits ass'(~ts1nsticli cpglp~es; Ellch FtmdmilY aJs.ofuvest.qp,to~n%'of;i~sas~e~~in £PtuJ:es(!po;~-ac;ts,op:.. PowerSl1ates Letter setf6rth'.a:bove;t:he FunttsrneetaJl6fuetconQ1UPflS·.·bfthe,pp,\vet,- $haJ:e~,tett~,Wit1l:respecttP. t4e-~~~,"etag~daily q;~tiiJ,)gV?l~tt a,n4 puqlif.:,.:tlpa.t tests;the.Cardio DeyicesExchan~e-l'radedFunds.atisfies1:hiStestwithl'esl?ecttdin()te !;ha~ 6g%~flts POJ:tfQA()~~~;t1w.lEnWfgingCM~Exc4ang~1'r'<l,d~4F.\lnd§a:tis£i~stWs; testwithres~cttomQt{;lth~63%ofitsportfo.Iio. As noted in. Note 4ahovJ; the relief .requestedhexeiqis subscruua1ly si1:riua,J:tO the reIie£.gt~ntea>tQother ETFs~ ~. The HealthShiresTtWEmetging @aricerExtharige~l'fadeg>Fllridthtcks1:hepetforinance. Qhhe He~1tl:IShilteS'fN1Emerging Gilllce+ lnlile~;a.p:d t}teH{laJthSha:te§'l'~ CiltdioP'cviees, Exchatige;;Traded Fuiid tl:ackstheperfo:fuliariceoftheHealthShaiesW€atmoDeVices 11'l,dex(ea;chind,ex,a.Il· «trngetIYiI1girlqe'$.*~.

!vIr.. Ja~nes A,]3-rig~g1iado
.Jmluaty 17, 2007
Pllge6:
tidnsolt.fllfuteScollttatts,opt10nS,s\Vaps:dtlsecuntiesofco1:n1'a.niesin·the lJnderlying In4ex,~$wen.'.t$p:lsh.a~dcash.eq,uivalents'.cl1asll1()neYll1~k~tin!itr\Ul'lents{Sppjectto:
the applical)ldihiitatldhs' ofthe.1940 Act)...Eacl1.Ful1d,·Willattemptt(.yreplicate.theU~ detlyinglnde~by matehingthe·weigl)ting otsec.tu:ities inits pQttfoliQwiths.uch~eemrities'· \y¢i151fti#g~1nthe UnderlyiAg)!nde.~. •Each Fundfuaya!sosample,.tatnettnanreplitMe, the·Under1ym~Indinlje!1l1sQfker•• ('hGteJ:is~q;,sh.~SFC.e/e~gsr~ti?rear11ings gt8vlthj~n4tliyigendyie14·· .·Itw Fund J?w1suesasampliilgstfategy,asjristdescnbedfit wiUc.ontinl.letQinYest~tleast 900,;0 ;q£'it$}lssetsin the..pQmtIlpnstqc.1%A.PRsqr(3DRsor :..1:- • . ••.• ~t•... rr' cJ·l:··T"-'d··· li1· . '. . l,J;lecohlpa1lt(~s ltl\J.,le QJ:ilwler+Y1Qg~~ eX"

1. lJrtdeilym~thtlex:De$ctiptidfisand:.Meth6dologies.
   Each.p£t1le J..JD,4etlrm&Ind~~~s eksto;;111~aSlp:l:1 and..1l'lOo1tO.r •.tl~e:J?¢:tfQt1D;a119~ofp\lh￾li~1y-listed ltealtheat:i,life.sci611cesltndibiotecMolow,companies, EachFl.1lldfocusesotl a ~ffere~t~e$t&care,~tesde~ces·.,·~iot~chl:Qlq~..in4e~. XSh:u=es•.••Gr~uPLLC (ilie<"Iu-- de;x@r~atQe'l; .thel'nret1boftheEunds?itwestinent.aaViser~XShatesAaviSQiS LLC,·is·the (;te~t0roreach Tjmledy~ JD,~~~"an4~ascI;~a1ea e~ch Qnde:tlring1Acl~ ganip.ye~t'" 111entapJ?roa6h knowuas·"vertical" .investiIl~'.''Vertic~I''1nvesHng seeks .to.categ~»jze co1l1pames Within•• a particulathe~th¢are,li£esciellcesorbi9t~chD,q!o~ .• indexpy{qp,lsfug ol1e~chcQni.pany with re~rd totheili~gnosisofdiseases;thedci\1;eIQpinehtsofdiUg's. tte~t:bJent~, therap1eSlllld d¢livery SY-$t~J,1J.s,apd thed~velqpJl1ept; (ifet1:i\pliIlg!res,earch t(}pls llhd,tecb1101Qgies fOtlJscirt tMhealthcare, lifesdel1ceso.tbio'techtiologysectdis, TIre 111dexCreat6:r" based on its ():Wn.1?.t6pci.¢tal-y.futenecmaI.mq4el,ha~lestaP»$hed~p¢,.· cifi<;,·. obi~ctiveinclusi()n!exclusiq,ncriter1,'l(1:he "Index COm-positiog M(lthogology")tlt~t an issuerm\istmeetinordettoheindudedin a'nUilderlyin~Index. Each UndeJ:lyip.~In" ~efti\ViU bea,~nist~.t~4i1:lJ~Qtl1~t:4<$:J?~o,r's,(~e"X1l,dtrt:t~tQr"),.Wlrl¢i1 will employllies~cJ:iferi«. t()detetin.Ui~thecQmp'osi.ti()fiOfeacli Undet1yin~Index .• 'The Advi.- 8m: b:~nga,g~Q..:I3;~· :WY'e~~~~;A:4yisq..tS •.~. ~9P't4.t:.9yjsp..ttq1?ete~PP4~iP;J~J<.).~the tlay~tO.·day<tnanttgefuetitof.each.Funcfs ••P(jf ....••.. ', •.\vhithihv61ves.princ1l'al1ytecQn~g, :the.pgrtfoijo9t ¢<:l(;h F~'d,~iB~f'l:g~t~t:ly,;;.JQl1~t)<;;.c:t''lQy,re,,011figW;atioil:Pi:t1i~1Jhqer':· ly~gIndexbythe·lndexAdmit1istiat6.1:. Whendetenninjng the GOn)P~sitiQfiOf¢a:hDnderlying.Tncle){,theInde~ j\Qtnjms.~ator ;r~lies.()n1nan)r,so~rl:es()¥fufqr.tnatiQll,inCl\l@.tginfoJiJ!na:tion()btainedfrom. 'the BioCen,. @:y and. M¢4T.taqltJ:la.t~paseS. Tl:te B1oCe1i,tW:yJlfi.4 MedTr~~ltqa.ta1:><asesar¢,m4ep¢l1gcm~ ge.J;.terallY av~aple· d~taPa$es thatprov1de~va~tafuount.df d~ta forhealilicare,life'sCi,.

~Hastifj9S
)
,./
"NkJ~m~$:'A,.~iig~glfuIl9 j'aiiuiuy 17,2007
Page r
F'orea<;h Underl)'i~g If'lQe~, thelridexAdnili1isiratbr\Vill s<;reen. cdmpahies t6eIiliiiriite:
thOsetnatfaIloutsdeofthe m.'t!ketcaJ:iitaiizationran~esal',pll¢ablet~thInde}{; .'1'h.~ Inde~Aj:rator will tlieq. eiIlplqy·~e tem~de! bfthe]il.tle~q6itipositi(jn Method.. olQgy'fo£e~th Undefb~ing,Ind¢xto:,identitY'thec.ompatii¢~.iihM$~~~~·th~$e<;Pteri~. ''ryplp.lIUy, t4el~ges.t.o-tme~:esqmHaril~~:(c:iete!mif'lecl1>yinatket.ca,pif3liZ~tiol1):l~eiri- .:~~~e~:'::1~~!:~~~~~~~;;~~~~:::;~:;~a~e:~ea:~~~~~~n~e- thereafter \velghte-dbas-edupon die''iridiVidti;al¢O-nipai;1Y~li''m.ifket'v~oo tela,tjyeJQ:-th~'- \vrnchever is less;-widitli~ teqtiitedinc!emetit takenequ@ly'frorli all ther~maifijfigt6m-. P;o'lt-seCqpti¢,l!;u tq;(qW1ilti~n,'~lJ.pu,t e.a,ph. IJ-ng¢rJ,ymg]nQ:ex,'itlc:1wqingtbeFP-mp-<m,ept seCt!~ties lqca.eh 1:Jt1cl¢tlyih,g Ihdex-;and the ,va1li~Ofthe secunnesm eachUntle.tlying,In- i;lfcXfis.p.o:s-~ed th:tt,fu,.gbo'Pttl1e ®~ d~y i~Y:~ 15,'$¢c,()j'19S~md.- is ;flYAAl~pJ~tW:o\lgh R.euters. . . . g¢ii:et!i-Uyin¢lu:d¢tho: wit!) $,On!l¢.:J~v~1~ft~e~qe.s",9P t1i9l!~"p~J11ey~!,g~p:'frC\IeAu~s wi~ ~tgtl;ifioaiit qqt Jed t~ear<:h-anddevelbpmeritprograms. . =:~::e:::_::~,~~~~~;~e~::::::;;~~~:;f~~~::::~~~~~ 11 The itiinitnum \ve;ghtiilg for a,seCurity may falLbelow 2:5ii/oifitheeventa.teb~cing wO;llg .t~qJjir?t4eETF'.te1ymgQn &ushln(1e:l' tq m~lteOlitl gs,qtl:derS¢diqlll9'(gYQftl,'l.~ Exchange Act. .

~astings . -.' .
"
) 1'hiJap:1e~ A. B'xigagliqgq,
January'17,20'o'r
P~ge;B

• ageflQat-aqj':o~~~(ltl1r1:f;¢tcl~pit1t~jitiQnwas'.approX:imately$.O;39'J7 billion;· nUftehlat~st
  cotistituefttS tepre~ented~ppro~lit¢ly60;420/0,~fthe ind~~'Weight.Theijve¥gl1est . w~ig}1ted:cuiities' ·tep~e§ellt~q 3'6i'93ro'9fi#lC1e\veighf. .'. .FIeitlthSltafi{s'i~IEijU!ygb#gCa't¢lJ.r!nde:x:,(I,~.ojt>e(;emllerJ~,,2;()1l~:' rn~e~: Ci;>ml19:$itiQll Gdncenthitfon SilebfCortiparues - P19At"~qjt1stCq' $B@<;>l1;~ Ind¢x (]harac~ti¥ti~s; Index ConstituehtS N~QJ.ej IllC!exWeight -'totil.l~~~·i$~e.;(1Elq~t~4j~st~q :ejJl:i.9P~) NumberdfCotripbnents 'ReJ;¢cllt it! T~l1,.ta1'g(3,!Jt qC)1n,p(!)nen~; Market Cap. - Medlait '. Matlt~rt;~p., """' @t1-Jmeij;9;4y~age Market C~p. - Siliall€sbSt-ockHeld Matli~t:CJlp:. :. L!J1:gStrQ~ka¢td. M:uket'Cap; -$ ';Wei&~ted,A-vet~ge, P6rtfpliQP1E P(5ttf6).j;qp/E EX91\l~Nriyee~+nings ~~~:l:i/~~~~:~i:()~~~~~:S ' POrtf6lioPrice;!BQok'
  Divide'ndYIeld.' .....
  $'Smi "'~2:
  60;;f~% $ ();4435 ','
  $ (};~99.7
  $ O~2266
  $ t1:aQ4$
  $ 1;:r6'66
  N}:A
  Nl:t\ tN/A NIX
  N/A
  MIA
  )
  /
  Bioctyst,~h.J11aC~lltic~.llnc prqgemc.sPhami'ateutl.dils:Inc, n~nQ;~:qI;l'G.m:p ::;~:;i!:~alht' ;(Seri'tillic I<,j3~qpcelltiea.l~' Erizgri rri~ .rsjsPl~ul'l+l,l:~~uq<r.lls· Gp.c':,Bi6techAg'-SpohSoie:d..Adt ~~m Pl1a:t:Ql!l tnc::' Hiil*'Bioscicri'ceslhe, ,C¢lJ G~'nesys Tile Adve,ii:ttXPh~trtiaceuticrls' Irk'Com Atlad Pha®e\lti2~§ Inc G~r6n CPtp CQleyPh~fti'11~cetit:icalGroup A¥tetnaZen~tis It1.<: Lg(~A];_US~I!#7(J8'61520·1,O 7;58% 6J2°1~' 504% a{S6o/:
  3990z ~'19,.
  5c;11~/h ik96%
  4A6o/d
  7·'P7f/o.·
  '5;7-2%
  ):;?l~(l!
  3.69%
  ~S(l
  2:89°/6
  5;5:1%
  4.18%
  .3.:0.9%
  3;30%

P~t,~~~ ~6,ap.;mlllijc~ll> lo;c
Mif§'Bail Ed,vardifTnc
~In.¢'·
C:ytoklherlcstht
2S~%
3.22%
6;1:0%
2.$~O)o
OGd~:'¢fi:~:~jt;1:~~~~~~':~:;f:=::;:l::~f'~:!:n;g:eS:;:~ ~e t19a~7:l,4jUsted'm,.<:t capi'tilitiqi1 wllS~ppr()te1y Sl.$595:billion. The ten'largest c:dhstil:Uents"tepies:ent¢dii;ppi6~ite~y 55~5S%'()Nlteahde,x \V,eight Th(djy~JJig4t weigQt~d:s:e(;J,Uitie~J:~pres~nt~9-ql..5:1%oftheind~ -Weight, , Healt1iShaTesT~ardio Detii''l!s,[-iUlex,ds'OfDei:wber 3I,20,06;~ ) Ind¢""{:C'Oitiposition OQncellttaiibi.'l Iridex" ,c.g~a.qt:et:i$ti~,s To~l Ind¢~$iZe(FlQa,t-Agj:tJ$tetl~iUiQtl$) Nttniber,o£COl11pofleilts ~et:¢,e:n:tiri,:r¢:n'.J;:;~gt '(:~mp~tl~l1t$ $i~jiE NlA MIA N!A, N/1, N'IA NIt

tyIr.]am(:$:A, 13'rigagliano,c jailuaty 11;.2007
Page'10
Index'CollstlnIents, l~M1ie,,'Ih\ie*\Velg&t
ABiomed Inc
;:qgi.p4y~mk:$ rIlc
Attio1l'Gotp,.·,CQrn
B,llt(:I(<:;;.:Ri;)··.·.I~t;
Cryolife;! lric.
(CaJ;w~c::~S,qc;ns;e:c:Ptl?·
Dinasc:qpe;
Eadd)ogixJn.c
EV'3' .
B~,va[~~,Litescil,':J1Ce$'Cq:lll;
F0x>Hdllo\v/"Iechrtolqg1es"Inc i~;~g'i~:~b
NI¢tit'iyl~dic~t$Y$l~tnsIn..c:;;
Nh1tMeaTiic~tt>fu . p®sis,M¢diqfl1 Jn~.,
S.iiecti~heti~s;Cotp·· s.tJpa,e,~fedical
Steh~dtaxi$nk
1'hQr~t~GCqtp'
Vlt$¢l;iliu:'S6hidbils In6
VQl¢a:jj~ CQtp
It.T:heAdtdsot

• 4.2545%
  5.2648%
  "if '0' 4...S15Z'Q
  .5.6'077%
  $.g~66°)()
  2;6652%
  3,0442%
  3;8692-0/0
  4.123~/'d,
  4;9421%
  4.{S8:S0tk
  ::Ki~~~' 5 fi9"f Ol ,:\r' ,/2/0; .···',';i~/ 4A;385,jtO' 3.8'$:6'2%, 6.2810:0/0 3
• A:e·8AOJ . ··.lIU}t1O,
  3.7470.%
  $.~Q~q%
  3,218'1%)
  5~5,27:2%
  )
  ."
  'cbrn,pariYi XShafE!S'iGioup .LEG.is:,the .treatof:oftheDnderlymg;lndexes.
  C. ·.TheSub,;,Ad'\dsor
  EN)! 'lnv~stp:l~nt.Adv.i$-()fs~a;sepatat~ idel1tifiable·divisiop- bfilie,-BllnkofNe\vYork, setves:as investmeht sUb~ad\risettotl1e Filpds (thei·Stl:h..Ad"lsof~). PurSltMt toasuh.;; a4visgryagt:ee1l1e!lthetweell t&eAd~iis(;'lta,t1d the'Spb-AqYi~ot~~heStl:b-Adviso.t\Villhe'

PaulllQstings
'A~ ..
NIt. ]atnle$ A.l)rigagliaoJJ
]al1uat;r17.. 2007
Bage: ll l:e~P9n:>~bleJq1:tllet:lay-"t9",daYh)al1~g<ei1t¢t1tofthe Ftlrlds~sutiject td tliesupeftiiSioIi oEtIte Advlsofa'hdithe BQatd. D.TheDistributor J:\L~S·DiSt1ibut6ts.Inc...servesaS'fhe·d1sttibllfof6fGteatidri 1.Jrot. A.ggre~tiOriSfot.each :RtrnglQn...an~e!l!:yJim$is(theJ':Oisttib!1tQ~")' ..11le•• Pib\ltorh~:>,jter~dirltO!~11,~g~e~ .. l}1~l1twlth.~eGotnpanyputsuant to \Vhichit.willdistriput<~'H'ealthSharesl'Moft1reFU11d&. 'J:'JUsa~¢e1lle~t\ym qQ~tittue'£~j;tW'o1eal:sft~1l1its effe~tiv~4ategnaml1b~re~ah~e' aWll.la1fythe~ea.ftet. B:(\a!dl$hares]"Mwill be contllmouslyo££eredfo1: sale bythe Distribu., t<Jt~fl1ylt1Creati()nUtU.[;Aggregllth)ns'~S'id~s~J:ip.edil1 theCompa,ntspJiQ§peC:1'Ys'."rh¢ IJistribllt()l: will deliver dleC:()mpanY's,ptosp~.ctus,an~•.~pontequest,.the.5tatementof ~delitional"infortnatiQrL0'SaI")'to. personspul:qhit18Crelt~QU UnkAggregatio~s:~!lqWill in~41tain.feC()rd:>~f.pothQt:ders .•phtc:ed.with.it~11d<:oiJ.f1tl1latighs'ofacceptatlce ..futrrished b)''it. 1'lie·Distributotrsa br~ker~dealer'r¢~stetedwlqerdreExcltauge.Act~clame(nbe~ Q£tlie N*S1D,.lgc:; .' T11e.ni~ttib~t()thas'nq·r()1~ihcl¢tgtlteinyestment p()lic:ies}()f tl1eFufidsor\vlUeh$ecUfities fu:e;tobepurcha$'edo~$'old by the Futtds. E. Iv!anagement-Indexing: Approach TheColnpany'sB:oatd hasresporisibilityfottheovetall matiage111cntoftheFunds.1'he ~dyisor, ,subjeyttPthe. s~Pel.Xj~i()fliqt theB()aJtd, wiUbe'J!~$p()1.1sible fort1te<iuvesnnent lIlg@1lent()feacl! Fund. TheSub-Advisorwillberespo~siblefor dleday::to.,day man- ~g¢tnent o£the Fv.nds,supject to the.s\1pet'Vi~i()n of:tlte J:~yis.()rA.Q.(;lthe~Q.al:q. 4sde￾sctib¢din tll~ Cofupany~sp'r<;>speCtus, the FtU1dsare<notactively1nanag~dal1d the.actions oftheAdYisQf'and'Sub-t\dvisQfWmt1Qtt.¢s\lltint1)eaCtlye manag<@.¢ntofthe.E@Q:>· Itd,t1lgxil:o~§ .• pas§tve, ()till4~~~tp~~~!hjg.r#gingJhe FUlldstotrJ,tck thtilirQrman¢efJDe£()te.fanae~pel1$¢$',Qtthel.Jildtt!IndeX¢.?Jnl~em@y~u-. liJ.l31lf9~q~,;th~· F'gJ:la.s~~qt§~e}{ t99tl,l:p~tfop.yp~tlPl1~w~~~~.§~g17il:~tt.·Willt1Pt assUtriete1iipotarydet~nsiv¢.pQsitibns·\ihen:ltUttket$·•.ae9Ift1e••.QJ:apl'eat••·PY'¢walu¢d. ~ltel:eyt~rpl:~c;tic;aBl~,. each.F'-U1tf\7lllteplic~te .itsJJnd~r~Yin~ltl.dex'.'.1l1earui1g.thatit will hold.the satnesecurities·as'thdse··illtlieUl1detlyio.g<.Inde~anu·inapPtoxhnat¢ltthe same P1:()PQ~1i(>-nsIthel)ec\1titie§.9W1J.e4 br•.eaC4FllAda7el~e+e~fter.r~fetredto. as "Pun.dSec;u￾tities"), Each.Fun:dmaya1so,sample.itsUllde~yin~,lridexbYhoidirigseCuritiesthat,;'inthe '~ggree, ~e·,·intellded"Joap:pr~x!mateth~.JJtl,(:I~yixl& Ind~~U1 t~p11~og.~ey.chatacteJ,"il)-. Ucsrsttch asprice/eatningstatioj€atriirtgsgtowth1anddividend }>ield Typically, ·aFund wiU1lse as~plin~s!Lrat~if J;e~atQ~-yconsttai.nt9ioto1:het c;Qn.s~getatiqgspteyent it Itom feplitatirigifsUnde1':lying Index.

Paull-lastin§s
.!lTI'OIlI@'
Mr. Ja1n~s1. Btig~li'ano
Januaty'17,2007 l'age 12
11. Proposal
A. Reason fbr'ThkRequest
It•.• i$•• Cttrr~n:t1y·pec;t~4.th~t~1~.Fl.lll~wi1lissJle ...~1)dtedI::Iealtl1SblU:~$JMq*+yit1.~g~ ~regatimls"of lQO~;OOOHealtljShare$TM ormUltiplestheteof(':'CteatiOll Urrit·:A:gg1:¢gn~

• •ti~~~)),·~Jt~:'tha.fp.\l+AAaq£q~p~tigg PIlit ~~~~RJ:l§,~h~.,able.·t? sepata,te.;~e
  Cte~tidllUnit.i\ggtegatiortsofth¢ FU11dSinto'100,OOQit1dividualH¢altliShares~rM~ .. 'I'he 'o11lllbetqf'Ii.e,~tJ,tSI1aJ:e~'J.?i1~a-Cr~}:ttil;}plJ1litA;ggte~rion.will·pot (;geX~(;eptil1the eyentofastock split ots1tl1llMrevalwition),. . The COlnpapy\viUlistiI-lealtl1$~'U:estM~£the Flln<.i$q~tl1eN¥S~ .. ~t~l1.e0P~Cted.t.1l~t 'the l)istriputqt or.a.ny oilier entity will maint.'\i.4 asecondaty matketininwviduall-Ie.a1th" Snares™ .. OneiprlnOl:ei~$~tnemberfirmswiIl~ct~$,de$igp,ate4spec4U1~t$.~n4.ma-iw taiila matketf()rtlieH~lth8ij~res~1tha,tttitdeoi;1 the NYSE. HealthSh~n:e.strvt. oillie Funds \Vil1 ttaac\Qrtit'heN¥SE'in/atrla}jll¢t:sifnihtt1;o'the w~yqtbeJ:ErFti¢Utt,¢~t1ytt~u:le Oll.the NYS£·atiq·0t:h¢i:ExSl1a.ntses. " A:sstateclearlier, tlieComp~l1Y l1a:s.tegIsteted tl1e>Furtds \ViththeCotfu:.llissionptttsua.I1tto a'1:e~str~tion;s,tatemeflt9oX111.IN~t.t\ ..toper~tt:he/C()1npat1Yio ••9ffetat1(.lseA.rte~th~ Shaies™ofthe Ftiilds12tinderthe 1940 Actatfd the$ecurities1\ct. 'I'lievatiousdisdo￾slJ+I'htlqSll.111ep:ts~drp:~ttet:ingm'<l.tetiaI.swiIl··<lescribe·t1lesjgpifiqmtf(~atutes ofI-:Iealili~ Shares™. Health$hatesTM(U:eregi~teted in bOQk-enn:y {O!Pl Qn1y;tije}:(llllds w~ npt isslleindiyidu~l sh~e cettifidtt~s fo:tFI~lthShatesTM.. 'fheIDepositqi"y'ftustCofripany("DFe~J),ot its. n~nililee'wi1lbe .iliel;~qq:td .•.,rsteretl.,.~w!r'·o(}tUQ)JtscIm~.FIe~thS11~res1M ....~ene￾ti~1.q\YpeJ;p·~fI'1~t1l~4~¢s'r-f.~ ..p~S~g~ •.oitth~.rec()td$o£D2FC···o};;aDtdker .. det.th'«ti$;a;·p~:tticitm~1;·'ln ••L)tr(:(~";o]C ..P~tti¢iJl~el).~ n¢1l~fipi~9W~er~?t>fFle~th$haf~§~M('~el),~£,i~!~Qwl1ets~J~will t¢¢eiv~ •• ilJlpfthe.s~t~- mehtSj .•not1ces~andt¢p'i)ttSi;eqJlfred .•unde!the.1940··1"ct.andorhetappHble" htWs 1:'l1ey ,yillI~c;#ve).fo.riempl~ ..'lllfl1l~·,··~q,q.~~~~aI:lnuw ..reP9rts.~"tittel,l $~t~mellf~ ao.mp~f~' ihgdividendpa}rnie11t~} Pfo~!Statementsl. annuaL1l6tificatlonsdetaiHngtlie'taxstams.of dis1:tib1ltio.tl~, .• ~S~r1~Q9-IJIMs,etc; .. lleqfl1ls~tl1~p9m.l?at~i~feq<:)1:q~"j:e£le<:towner~ slUp ofHealthSharesT~bXIXI'C oIl1y,theCompany,VUlfutnish ap,plicablestatemertts, llo.tices,.an4IePfJttsJo.'tb-ePTC: J?atti6ipallts''Ylt9~jn:tl1rll' wU1.he,·respoJ:lSihleJot.·dis1:tib\lt~ ingthem to;:he B:eneficialOwners, 'This arrangeti1ellt.lsidentical totha:to£the oilier

PaulHastings
ATTOllN€VS
) lvir.J1l1T.t¢sA.~t.ig~gJ1wo nl1Ual"y 17,2007 JEtfs.. a1{~c:lyU~tqll.l1.xl;hap?~§,ap.<.t.i$artqt~atll§edby E'fFs 'whg~e$futreSate owned t.litbugh~riiuttfuLfUnds sripennatketinterniediaries. B. PutchasulgHealtl1Shares"fM TIle ~Ul1dsWilli$sueHealUi$resThl·?rilyiriCt!¢ationU.i1itAggtegat:i6risandgenet~y, ori1¥in ..excha~g¢fQtl ..m-kitiddepQsit·.Q'f·$eCt1rities 1:>y.·~e.:pW;¢ha~er.t9~e~el:·.!:itha'ge-' p(}sitQf.,~.sp~91fiedchpa~1llelltq~§ctibed1ll9re fully .helo~ .•. Theill-kiriadeposit WiJl CbiislslQfa bask¢tQ£;se¢\Uid¢§i(the··"<.DepositS,ecprities?~)sele¢ted.by.tb,~·:i'~~Q1Ct9tepli,. c~.te (or"§~ple)the·s.ecurit.ie~itlth~..r.Jndftrlyit)gInde;e$•.(~§descri1:>edabovein ,·PattI.E).· The identiticsaud-ai'P.ounts:·.Qfth:ePepos.itS~!1rici¢s ,v.iU.. l:>eaet~.edhy-tb.e,;Advisor a~t1'll1adepllblic1Y aY~lJle 011 the-N~tiollaIS~qllritiesCle~g.Gorporiti~nr'NSeC'~) bulletitl.hom.•.. By tequirillg tliatl'Utchase~ndted¢mptiQll'ttansactiQnsinYQl~g flt1J~Jrate~TN1 hie.. ·i.n-,kiqp,.·.t1J~11.· .•t1l~J,1i:t;t"·c"l~4,.~e. tEohlpanY···8~f:i·.winitrijze.p()ttf()lio hilihover,br6kerage expense's,••and·oth¢rtianslJ.ctiOll<;bstS. 'Il~H~Fl.ln"illqff<Pr~1,1ds~1-1~ltli~haresrtirinCre~tionUniti\ggre~cipnsithl:()lJghth~, ,··Distributot.·on'a' .C(}ritinuous·.hasis~ -without a smesload,·..attheNA;X;l'per-sn.'tr¢neAt..deter￾l)rine¢l~fter t~ceipt()fanorder in pr9P~rform ..Th~F1J11ds\vi11nqtissuefta~tionalGrea￾ti6nl.Jtriti~regations..•TheNAV ofHealthShares™ will hedetetniinedasoftlteldose ofreguL'l1: tradh1g 011 theNY'SEou, t:ac1J.Q2:yth}l.tth~ NY~Ej~Qp,ell{a ''BJ1SmeS-S I,)a.tl li}diyidll~LHe~lthShare§TM9ftpe Funqs will he listed' on theNYSEanPtt;a4edin. the sec￾ondarymatltetin th¢isatil¢fuann¢r asotherse~uriti¢$. TIle pti¢eQfl-le~lth$h~t;~sTMt:tad, U1g.0i1. the lXJYSEwill§ehasedol1•• .•cuJ;rent..bid/~ffermat}{etal1d may v~.frotnl\JAV. NO,soconda.i:.y salesiwiUpe. :tnadeJo.Qt0k~(s,.o1"dea1el'Sat·4t;9nq~li~jQh.Qy·,th~.Pis.tribp:t()r orkyFun9s,; .·.':I'r~!lt'1l~()ps,jpv()lvif:ig •.t1le:sWet?fI-le;llth$har~s'l"~:ontheJ1:~WW¢h

• . \vill.beJaenve'en.•pw:ehas(!Ji$)a1iusellets'and-\viU\uptinv;Qlve·the Ep:ndsi....Will.g.¢'~uqjeJtl.to
  9~st.g~·b;g.t:~tag~"c~s~pgS()tmarj{ ..~P,s ~p,;(.t''''4tQ:g(;~·; 'fh&priCirt~()fHeiltBg1iares~·' ••6f·the•• Fuil&..,·b1-irleans<(}fbids~d·Offets.bnthe ..·mSE.iri the ·secol1d~ltlatketishot.l1~~~eI. ~slloted' aJ:>(jY:i'?th~t E':CFs._areliliteda~d ..!~~ed9n t1l.elXYSEalfdotflet Exchanges as well•.This is thel11ethodby:\vh1dltne,'shates of dose~-et1d'inv~stment<;p~J?~nie.sa~eptice~an~s()ld~ft~riniti~issJl~9~· .1\PEIi(:.~nts ~Yebe~llinfo~edWa~otherETFsllilve.traded at;. or vetydoseto~ tlieitrespecthre Ni\Vs§ince.tl1¢irtiadmgic0lJW'1en,ce.? .. t4osepr~duc~s,,*eRric:ea!\yllic1lI-Iealtb, SharesTMoftlieFundsttadeontheNYSEwillbe discipJfuedbyarbitrageopporronlties, created.bY. thwabilityt~pll!cseorredeep.l' C:r~a~Qn Unit.t.~regati()nl)at ~A'V•. \Yhic:h should ensureilintH¢aldiShatesT¥sinillarly donortrndeatamateriill.p.termmnot dis,- ¢outttmf¢lationtbNAV.

~Hqst;ngs
Mr.Jb:m~~A-arlgaglillno
January 17~:20()7
Pa,ge 14 .
GPta-cement.of@taets·lo·PilithaseGteationUnit··Aggregations Al1'·ordeis.·.t(jp)lt¢bifseC~eat1Qn Uriit.Aggte~p()j}$O~I-Ie~ltb$ha:re!iTM()ftheE411d$.ft1~st beplacecl'vith'the OistriputorpY9rthr()'u,gh~"Partkipatit1g0rgao1zati()nrA'Patti~pat￾ihgQtgarlization;mustbeeitbeta.(~P,atti~ipating.Patty·?~;~.,.a..bt()ker-dealer·.ptbd!etgar,. tiSi~llllt ..inthe~le~n?pJ:()ces~ .. ~ough~.eContin~ous Net.Seill~ment S)f~teniof'the N$CGjiadeating'agencyte~stetedWith. theCotntnission•.puiisuanttQ..E~cbang~Act·.·Sec,. tiQ~17A"o.r Jt])TCJiarti8P~nF,flmli1Ieacllc'clse, rnv.steIlter~to.a.p;1+tiqipll11t~ejtnent with'the.G()111p~yot.its.D1stiibtitor; T'lleFuiias\villteto.up tlie.¢Qst$o·t'lss;wngaCreacc

• tiol1.•lJpit·}~~~ti()tl..hy ·~1'9smg.a ("l);ansaqti()l1..F~e" .••.onit1vest(}tll'P\lf<:h,asing·.Ot.re- .deemihgGreatioi1Unit1~r~gations .. Tbe putpose'of·tfieTransaccionFeetistoimpos.e
  lhe CQstsass!)q~ted·,yith. tbe4~l;lJ:Fh.;r~e;a11~rtlcl~plptio1J.J)f Cre~tiol1 Unit}\ggr~g~t:i.(,;)l);S qn th'ose.piitcnasmg-ahdiedeemiri.g;13. ..i\11 9t~et$· ••topUt.chilse ·CteaUou..Pnit.A~te~tlt}1~s ...ti'lust··berecei,"e(f·by..the .JJistdbtlt~r; priq!tQt1ie close oftegular. #ilc.lii1g()~fh¢NYSEeGl()singTin1e"). dn theaateth~ order
• isplaced(the.•<'Ttan$rl1itmlf).~t¢'?J,~~~~llQth~t·.PJlQc¢~w:e~ ..s¢tfQPlhin···the.aeme.~t
  W!Ul~e Participating G>racti()1111l\1st be followea,.in0tcleE for tbe purchasert()re~ cehie·the NAVdetei:ltii'ned,onthe 'I'r.'lnsmittalDate; The DistcibutorwillmIDntllina re￾cordofCteatipo UfutJ\ggtegationp1,11!chases. The Distl'ibufotWllltmnsmitaIlptitchase ordetsfothe Funds; Auyoraet that/isllotin ~l;()p~ fpPJ:twilll->erel~tea.."Aftel:the JtUtls4; bav:ea:~epte9acP1ltcpas~Qrclerand te- .' ceivetldelivety ofthe neposit•. Seeuritiesandanyaccompanyingcashpaymen~DTCwill instr\ictit to ini~'lte "de~vety"ofe1le ~ppr()ptiaten~bef(}fCteati()n Ullit~ggr~gatiol1s ofHealthShatestM to tbebaok'tclli:t}caccouiltspecified by the purchaser. The Distributor ,\Yiltftt~b apr~sp:~«;~aIlqa~oJ:).fu;roa#gl1to,tho~epl~c:i11gpp.r~pa§eOfc:1:~r~. Raymentfot Ct.eatibfi UWt Ag~egatibris,. Persons purCihasibgCf:eatibn unit Aggtegiti'onsfrbro the FMds gen:.enill.Y'fil.$tinake~n in~kind deposit ofDeposit Sccuritiest<Jgecller with an amount of cash specified by the ,AdVisot (the('Ba'Ia'ncing>Atn6ulie~)arid ~the Transaction Fee (together with the~:Ba1ant.tll$' Ii '1'hePtospettliS;ahdSA.I [oithe Funds '\vID pxoyidecomplete cllsclostiteabbuttl1e 'ftansactl?nftee.....j\llaQ9it1()l1alclt~gtrofll,~ to•• fiye>(5J·titn¢s...·thefixedTfM1s~ttiq~1.Fee (exptesse'dasa percentage ofthe value ofthe DepositSecuridcs) maybe impbs~afol'(i) c~eatiqllse~fe(!ted'OJ.lt~ide theCle~g~J:()ges~;and <it) 91~h cteatiOl1S (tQ offs.~tt1le{:()1l'! pany's brokerage ana other transaction costs associatedwithustngcash to purthasetbe l:eqw§i~eDep()s.it.Sec~es):.. Illyest()J:s;a;er~~m~il->le fbrtl~tCqsts qftr~sf~rritlg the secutities constituting the DepositSecuritiesto the accountofthe Company. LEGAL..JJS...iZ # 708~7570·lIl

PaulHastin.•.'tJt ATTORNElJ; ...•. . . :p-.
~(t. Jamesit Br$gagli'c1:Q:Q
J~fiu.aty17, 2007
}Jage 1$
1\tn;Q9Q:.t,th(l'~ShG<?p:1potl~t1t··). .the L)el'q~it§~CU1:iti~san4.theCh(;~1l11>()tlefitC()1 lectively areiefetreClto ilsthe "Fund.I>eposit.)1 .As fi6ted.aOov-e, th7Pel1'o$it;~eeurities re,pUca~· ••(9r... satnple).th~Ft1n~;gelZtlritie.s;q£·lli.eI+~llds ..,•. '1b~... Ba1ancingi:.l:nQ~t •••.•.acash paymenulesigIled to<etisurethatthe NAV ofaFulld:r:>eposit (notincludin~the'JJJ:ansa~>- tj<?Q:Fe~)jsiaen~<;~ltp ~eN~¥:qf W+eC1:eat.ionlJnitj~isus~4 t9.plll:cOOse. JJthe-aat"' ancing.Amoun:tjsdsitive nuttfber (i.e.,theNA.V per CreationUnit exceeds.the market v~l~e Qf.th(fOepo~it.§e~t;j~~),thentb~t~Qp,t1tWil1JyeplbY····.l?:~Pl1ll.§~J:t~t4e F~tlGljn..cash. IftheHa1aflcing Am?tmtis a negative numbet(f,e.,the.NAVperCreatioti 1.J:.niti$le$s.. tQ~n·th¢tnarl.~J;:ya1ge Qf:·the PepoSitS.ectu;itic$), th~t1thatan'l,oun:t wil11?·e.pllid l:>yllie Fundtothepurchaset ineasch. The..AdY:i$olWill.tnak¢:jlV~bl¢th.tQJ;lg}jNSC.CQl1 ~a:chlru$ine$$JJ.~Yi' P#9+ t(}th~QP~nt ilig,oftp\djng~ntheNYSE(a1i~f(jfthefiaines ~h~.theieqtiliedriti111berdftihifs.oftea<:h

• DepositSe¢Wiityt()beip.cl\lded.in~~~'Qnd Dep(jsit,14 ...•l'Lt¢.AdVi~oJ:~$(}"'in ••1,Mk.~.~WM-
  .. a1:>1¢,o~ad~ilyba$is.theinfol:11lati?!lab()utJhe •• f>revi()l.ls.c1ay~$,Bala1ilcihg:AtnQunt; .]0 acleli￾tiQnltlie·£ono'\Vinginforttm;tiQn'will.be~senrin~t¢a:. (i)•• qqntinJ.lQ1J$lY•• thtdugh:p,\1t,the··.l;l;a~ ilt~d~Xtl1l;~l!gh.tl1ef.aCilitie,s.'.Qfthe,FQIl.§Qlia~ted ~1?e,i.tlie,·ttJ+lrketpriceofaHealth~ Share™} arid(i1j everY't5secondS tl1.tQu~ho!lt1:hettadio.£; &aYias cakubitedh~r BloQ11lbeJ:~.the est.i!:ngtedNAVQfa He,althS.l1~eT~f(\vlUph estiinat~ isexpestedt(}l~ea.c￾cfuiate to\vithma'fe\vbasispomts).Cbmparihgthese t'\Vofigutes allo\Vs:an investortQ a¢t~(FwI1l1ther.·a!lq tQ Wha.texte,nt, He~th$haresnl.()fth~ Funqsate selling at a pre￾mittihof·ll.cllscdlin:tto··N.AV, In <~dditioll,.the ,CQtl1P~nyre$el'Yes the l1.ght.tQ pennit·or· reqpirethe,SJ.lbsti.tuti~<ofan ~tn0unt.ofc;\sh--.i.e.~~ :<Cashinlieu"amtiunt-tobeadded tbthe€a§hiCofil!?bt1ent to repl~ce~ny De.positSec:ut:ityth~t11¥lynot'he aV1Jl~jn .sufficient (luty,foxd.elivery, ~Yl1;ot.·1J¢,.~gi~le·f~tt~11~fe1t·.thfOl.lgp.'tlteCl¢ati11,g.Pr()cess15,'ot.'fuay.ria1;'heeiigiOie,.fbr· ttadfugp,~/:~ar!ct~allnr'~f~t1.izati.~n.·~ttA¢'·i!l~¢stQr~()r.·\V1'1i¢1r;ap:atti~J?l.l~g'Qr~a. f-i~11.j~;~~~. It1 ••J>:MSirc~f~*ce~.,~e·¥g~ilmny'us~tl11$«f;rtshifu.lieU".afubWtto~c"" <;jllite.the D¢pQsit$ec~tiest1lat COWan()t'~eii¢liYeredbytheJ?wrase,t~~,thea, l?'1:()~erag~ .cQnt1~§~iQp.~inc~ed 1J¥theF'¥l91tl~9nn~tiOtlw.:it:hi~£qttisi~Q~'bf$uchD J?QsitSecmiti¢G,ro:e. e4l'¢ctedto QeimnIat¢riw~dWillb¢}1tle}>,p~tlse,.?t"tJ1eF~1d., !;iQ\,- ever.the.i;.dis9r~.!)t1bj~ttQthe.approYaJqfthe BQll1:clQ£r:>ire.¢t01:~ffuayadjustthe 'I'tansattionFee (des.cribed below) toprotect·e~tin~sh'cl:relidlder$fto.1lltbis ..exp,ense. l.fThe.ideritityatido.:Uilibet of.urtits··ofthe]J)eposit seciltities,tequ.i:tedf()r.~FUfidnep(jsit·, may.cha~g¢i •.t9refle9tp}tlancing~4jJ.l~tmet1ts and.<:9tpqra.t~acfi<m:>hyaFt1Q:(.i,.or .inte'- sponse toaajustfuentstbllieweightirtg.oi:.tOriipositionofthe cdmpol1entstocks'oftb:e IJi1d¢t1yinghl(1¢;."{, 15 ItIS rate· that'asecili:ity likdyl0 'be a Deposlt Security isiheligible fortransfer.

F'auIHast;hn$ .. ::1' rY[r;JamesA. Brigagl.iano Jat1tl~ 17,2007 Ija.get6 Ju~t as••HealthShates™ ••cllttbceJ;llfchdsedffofu.·.the;Furic1s 6nlyihCieit1on Unitsizea~te~ .~tio11s,stlGbsharesot\Ulit$.sjm1lafl)'tnarh~ tf?a't'ctJJe40tl1yift~m<;leredjrrCj;eatiog ?nit size aggr~g:t1io11s'(ex:c~pt in. the-eventdle,Fundsate liquidated); Aste€Juitedbylaw~te., del11ption tequestsh1~?odotd¢rwillreceive~e.NA-Vllextdetermine4aftet:tll~J:eq\Jest iS~c1e' .Ex:c~pt•.inufi9S~1¢irctJnlstancesiHealthShMes'l"r.lwillgeneta1ly.beredeefi1tidih., k1nQ,t9'geth,cr~vith a·$111all cas1'l;payment,as Q.~sC1.~p¢d .l11pre·:tUllyPelow. 1-1e~lmSharellTM41Cr~'~?nlJt+itAggt:ti()ns <?f tlle.F\lU3s,",illbe tedeelA*1;>leott any tlayo'nwhich .the NYSEdsopenroe>;change. ft:lt abask¢tofsecw:ities(~'Red¢lt)pti9n.Se' 9urj~e§;').andaca.sh_paY1l1ent.•;l1le..•.~e.denlption.Securities;.1:e<:~veq 1.ly···a.retleemip.g•.ipves￾tot wifibe those Fund Securities.avai1~ble. on theNS€Cbulleting,bQardopthe,Bpsi.nes$. DaY't4at.:eql.l~$tf()r~4e{npti9I1is'J:ec.~ive&infitla] .fqt1tl.[)ep4i11g,()n,yhet1).~We. NAVofu@reati?uUriliA.ggregationisl1igliet otlowct·than the;tnarketv-allle,oftlle'Re+ 9~ptipnSe9U~~~~ •.• tb.,~.fytle~met:qf~'91:e~ij~n ...tJni~ !\ggJ:egatiqp,.w1jl~itltetrec~v¢ •• 'fr£lni orpa}'to HIe FundS a cash amountequal to'the Balaticing..Amoutit. TheFtl1rdsJl1aymake}:edefi1?'ti()l1S~artlyincashin.Ueu()ftransferrH1g9neor~o=eRe", demption,Secw:iriestoaredeenUng111vesror if the Funds'detci.;l11ine,•in·theirdiscfctk>n, thatsuch·~lt~xnatiyeis:warra11ted, rQJ,'(Anl11plc, thi~ c()1.dd happen ifthered,eemWginves￾tor is unable,byll1\vot.policy, too\vh:tpatttctilaiRedempt16rtSec1.1.nty. Aswithptii¢hase~; t¢de1nptiOtis.ofHeatthShat'f~$.TMihCtea:ti()h lJttitAggtegati<:>IJ,$will iJrgJuclt:a'fj:.;tflsaction••Fee. E. DiVidendReinvesttnciifSetvice 1'~'¢ ••GlilPly'\v~nQtlllake'·~¢.Dtt .•bt)Q.k~~~~~Ili'ia~ngR'ei.nv,e.~~~nv~~~.~ijx~. "Si5~;~) av~ble fd"1l~e15.yBei1¢fi¢ial0wnetsfor\reinvestfi1eiit O£the1t,cfttJ~aceeaSj bP7¢¢rt~Qt7()k¢~~~~"~1,1'1~ttnalte th.¢.;S¢H~¢~'*~il~hl¢ tQtb~ircliellt!l,. 'l'li,~q~~,. PMy~s'dis¢losure. doc9Ule~t$'Yillitrf(jrinfu~esto/1::softhi&fact.and dihidiriferested.ihves￾tQ1:S,tocPtjtilcts.:QchinY¢$torfs.htQkeJ:to:ascettain·th~ay~i1abiiit:Y~d"a 4¢~ctip.t.ion ()£th~ $e1:Vice·thro~g~,&+c~blokct, .. TheColA~a1fY~$·discl0sUted()ctlm~tit$\villalsO.dhlti()nili￾te£estedJ3:eneficialOwnetsthatther$l1()uldnot¢that~hht()ke1:mayxeq\lit:·fuve~to£s. .to ad4~r~t()I;peqfJcpr()cedptes~n3rimqtables in (}1;deJ:t(}Pw:ticip~tein the 8erviceand stich i1iY'estorssh6uld.~s'certnin.fJ:OIDtll¢itbrok¢t .S~Chihecess~:t;y.detajls, HealJ1lSh~e$J'Ma~" q~qd:Pt1!liua!'lfto ~eiSetvicewil1be heldbyt1'leBelle~<#l~vners itlth¢~atn~maniier, ands\lpjecttQthesftme. t~s,and(;oilditidn$,a$for origirla1.ownetship()£~ealth", Shaxes"rM. N,QBa1a!'l9iI1g~~0'Jlltwi119cteqWredin/~Qnnection.,yithacquiri1)gthese H~alth$hatesTM because such acquisitionisasecondaty 1il:irketttansaction,and nptactea" t,1.<>.n·
offlea.lihShal!~$TJ:\1.atc.:utl!ent NAV. 13r(jkerage,cotn.11iissiorl.s,i£@y? inqUj;red in pm-

Nrt.JlltnesA. Jlrig~gliano
Jantlaty ·17;>2001 ch~sihg~~~lth~lw,e$,TM with ·thecash fl:~1'Il.the9iSPllPuti6ns'wilLhean,expense,bdt11eby fue:Seneucial.•Ownets partici.patingirr:remvest11ient'tl:IroJIgl} the'S¢1C~ce. <3-. DisdosuteDocuments Tlieptitchase()fHealtliShate's:r~LihCteatihnUmtAggregafioiisotiri·.sec0riaatym.a.t~et tr~l$a~ti()PsW'Ulbr¢.f(!:co1:Ppal,ti¢d·Pt••·p.J1eceg~,d:bY'·~"$ta.~tP:1."}~·.p+,q.spe<:ttls;of·PJ;P:<luct:ge￾SCtlPtlQu.· '. '.' . 16 ... "fhe·blsttiButOtwill cOQrdin~tet:heptQductiQJ1~lld~$ttihutiQnotprosJ?e.ctU,ses.fl1ld pr9d1;1ct<:lescr~ptiQhs tob!Qket-dea]ers,~p",illl:>e tli~'.lfespousibility·.oft:hebtbk¢l:,.deru.ets to..ensurethitaEl:bspectUsQr ~roduct QesQtiprioll{i£the~ppli¢ation. is~a1l.te<1)is, ptQ'- vicl.ed eoe~clt·$,e<:olld~.~etPlll:chaser 9£ Hea.lthS1),~(j'~rl\l.. . . FL Cofuparisorl'df.the·.COinpatiy·,·to ilie:..oiliet:'FunUsThatI-I{\ve•.Sought'.Sitnilit .C6tnlrUssionAction

• .1'll.eteliefrequ~ste4jn.thisletterisideritic~10t subsfalltiallysihiilarto·the.teli.efpteviously
  gtantedl:>yth.eCQ11:utlis$j()tl'totheotherEl'F$tlo't: tel~tedto theCpn1pallYP' .
  III. Requestsfb!ReLief
  A. Rulel0ilA
  Rule 1()a-l(~)(1)(i) ptovides··dlat.a$ho!t.saleot"auExchange--ti;adeds€:curitYtn.'lynothe effecteCibelowthe l~streguhlr.\Vay sale price.. 'or.atsuchptice, unlcss:suchpriteisabove lliElle~tPtececling.tJri¢€:at'~hi~h.a!)!d.ew~ste~otted'1'heC01URally..peYe$t~3.tte#~f gr<l~, •..tli.~••·.pli~at1~o .. ()f:R).1lelO~--l.t?.·.sond~".·matketttansactions inI-IealtliShm:esT~ 6£ tJie'J:Uttd~!j$;,ptopt41t~:~§0fat:JJ$.El~ltb.Sh~~$'rM:~J:e ~¢liti.Ye~~~l;lciti~;J?~~~~··.()~Jl stO<5~i9t:lE~: •.A.ppl1~ati()p.·of1tule 1Q*.~t()~ri~a~tions"Qf.the'Fub.as'Hea1tl1$hares;r~ wouldoot.further thel;ule~sp~ose${atld ¢xe$pti11g$uchtt~sactioP$ WQU};dn.;otb~,m;- COtlsis~ert}witllsuchtule;c . .' 1§l'heGotnpany··nnsobtaihedanekempt1Qt1 frontSecbbii24(cljQfthe1940A¢tipthe Order(asde~crilJ~daboyein. Part 1)..ThS>SPt10n isconditiQne?9nanunde~1lting thatmv'estotsputchasmg HealthSbaresTMfto.t1lott1ltoughc1ealetsin th:e's,ec(mdf.lty)1:i:.~ ketWill1:epeive•• llshort·"p.ro<iuctP~sq:iIJli9Il".qt .. othel:sitpi]~.dissloslltedoc\l11l.¢hti1llieu of.t:he.lengthier.staffit0iyprospectus, .mhe Ptod-octDesctiptiou ,v'illprovide'.ap1aitlepg.- 11s1), cles<::tiptiotl oftlieY'4nds l!J:l<itheJ-Iealtll~.haresrMth.eY is.sue. 17 See fbotnote4,SlljJta..

~::;:f~::t~~~~i;~~~1W:-;~~~ie.~~~~,:ep1€~sstdfGr:S~~:~::~.,

• ·.qftl1¢..F~nd:.5·WilJ'fl1.lc9;l~feip.ac~Gl:4allC~ wit4c~g~s.dnN1\V 'a:dd s1.lJ,2ply"atiddeh1,ail:d.
  orfthe NYSE. Price diffetentestriily be due; fulatg~patt, to the'facttl'iat$pgplyaild de'- ,..11i~,ai<>,~p¢§~t\ygl:~··.~·.'.tP.~.!$~c.glldatrt:ra9fu.g"Jn~1~tf9f·E-~~th~1l<¢~§~ •. wil1·b~.q19~<¥Y·' telatedto~;bllt.notidentiCalto~;thesaine. f()rces.inf.luenciqgthe'prices'orthecompone~t ...s¢~tie$~q,f(hePnd~dyjng,,~~~s"~4m~il1diviclU,ally q~':.ip:/~~~,.~ggre~te,.at"~llY ·P9fut,~ tiintk Any te1n!?orat:y displltitiesinitiatket.vaIue,between,Health.Sha::res'(Man:d'theteievant
• !:;!)Jnp'()n¢P;:ts,e(:l:f#tj~.~'W"qq1<il tel1at~: pe co,r~e~tc;a..~e,tW!.te~y~y arQitraFti:Y'i~, ·~<>,te.,.
  ov:er; Ii-C;a.lthSh'afes:t:¥ffiCteacidn unit Aggtega,tiQns~X)tfuultiple$"thereof.may;,b:e::te~ deemed, on,::al);yausii.less'D~y; Unde~ tlws~n;irq.tmn~es~it wowel appear,to'beeco-:- , ~r!;~;:~r=i~=:iE=~~~r>re!M ;:rat~!:.~~~=~~~~~~1i!l!~ . rliPlllatiY~1nt~nt Jl1u$E,~pen.d,a~J~st$4 foteve~$1 o,f~et ~p~ct. The:ecQnohlkifu-, 'ptacti~aiity'ofsucl1astmlegy is·iipp-arent.MoJ¢'ovet,;atatiba:s f:lYd~tl>le,tQ;th¢ •.p()"@1,tjai:
  m~l1!pulat()l: as4;1:wR~1~<l,.'e~ist0nly.#l tl');ccaS~9:f~xti:e~e,ly la~ge, i~suets. .It iSl.l~e1Y tlHlt?€\ttirt'unresttlckd:;s,h'oft-smes\Vd:tildhavcsignifitant:ilmrkethnpact-O'flith¢stqck:Qf ~lltl} iss)lets,. ' ~et1iliol!e.theti1axitnutli·we~htihg,f6±:anysecuritym,.an.,IJnderlyingIlldexisrypicaIlY lqO,/o,.a;nawhen{(c()tnpa1J:Y's'w~lghtin~"ceed& 150/0ofth.e9Yer.aUTlld~xportfoli(), tli~ , ~e:=E~~~:~~~~~~ Thertia-diiig:lfiaiked'ot'Hea1fu:Shat-es'tMt>ftheEcUnds'wQ~a be'aay¢ts~I¥itegt¢drf RWe.,t~.:~. ·qpefated;"tQP;ft~v~l)Jaea~t;r~'o~ t:4e;~R~Sl~Ii~tJt()m malc,ingsli()ff§:W <if S;;i;;iEii~;~i~:::~r:!i;~ ~ffici¢flt:S~curi.tic:tsD,l~tj{el~i ' " TheCotPpai)..r n6te'stl'I-adt tsrtQt,reqtiesting:r.elieffrom Rtue,lOa.,:l" fbt'seCQJ1Qaty m~ket pottfoiip':§iies:'thattJ.1~fhe'tn~cl~ btthePupdsin.·c.onnecdon'\Yi~h:tedemptions;o:fGtea-, tidii tJriit AggreglitrdfiStlfHealtHSila'I'6HM df.otherwISe. The ghottsale,fule\vill:a;pply (or tlbr~pply! to,sl.l.chtrltq$~cti()nS' ..ltst() anyothc~pottfoli(J\trade; .,', ,., "

Mr. J~~~s A.~ri~gliano
Jan:ua~y 17~2Od7
Pag¢ t9 .
B.. lhile200:(g1 6:fRe~afi6riSHQ
.R41¢.~(m(g).·cifR.t1~.tr'$J1~'<fi~ql~,.~OQ~".t!r~ytcl¢~ ..·tb.·.'~".P~gk~J:7q~a!tt~t'l1l. . all~elloiders:ofany equitYsecWi~is«lortgt:'~shott".ot'~sliott.ex:empt.'~ Rule200(g)(2) teq4it¢~·th~ta $h.gJ:ts~e 6t9U·h¢:m,aflteq.~f$J;~{,wt;(~.~pt~fft4eSe11eri,sfrelyitlgfPil ~H etc¢ptiotiJrofuthg.uptickreqpii:ements ofRule 1&-1 o£the ExchangeAcbotiny i~hprr$~¢;pt1tete$t~£~lly:(})(¢h~·~g¢~t,riQtI~lJ~;¢@t;i¢$.:a:!!~Q.,g~ti.9P.· J&$·9£Jgp,9., 2905,) '~QderRegtil:iiiqllSH0" br()k~i:;~ealers,.arelgeneially teq~ed t6illatk(Cshoitex.,. :etnpe~all$hQtt.~al¢~;~tfected'in.;~ny,tlM$:'Qtp.t(rduots>.p.t~dutWg\¢~:n~ ~,eqi.fi~d:lrig(.{s. e~~~:~:tr~~~~jjC:~than~:;~:'j;:!::s~:~~~~s~~~~~&~s~~~ b* '~:():o~eilldt~~~~:i::~k::::tk':;~~~:~~~~h::~;~:t:r:~~~~:;:t~ .:;~::t::ritt=J~~~,~:~.~r~e~{!:t:p.·m·ETF~·th{it nia.b'eengramett'ari. Jft\l~GOIJm1jss!ongrap.t~ theteqUfst.~(treljef'v1tlI.re~pecr 'tQ J.\uie lQa':!, tb~GpmpatJ.Y her.ebyteqiicsts.iliai:1:he:St~ffilotiecotfuriehd tf.mFthe Co1'.ll.iriission ~ke¢f1'f()tde1llentac,.. tip.~ gnrR111e 2Q(J~QfRe~tion$H() j.f~b+Qker~deale.rll;ks."shO,rt:'r:t4erthan '~shottekem.p~/"a;shor.tsa1ethat.is.-effeCted in the'funds inthe'sa:ii1¢mabnetas those E'{F$ .li~t¢dirll\ppentlix Aqft4~·;;$lA. Lettet':tll,kth}tt ~e-J;g.gtail~$d.to~l,lCll :B~Fs,m the SIA Letter be exteIide,ho cb:verttfiiisatttons:inthe HealthSharesiM. .'The requestea, f¢lfeU$ ~u'b)~c:t;t9:.t:J1ef()UQ~g qqpPitiqnsl ". ---- ---- -- -. . 'safe§:ha~1nsti~~~~;~~~:~tt~~~~Z!::~::~;~eC~~:~f:=:::~::h . 'th~t·:th~y;~tc;·¢~c~~~.li·:#S.~hQit,~xerq.p:ti. r::l;;:~~~i::i;~i:!.s~ ~l.ii} h, kir:9k(}J"Q:eal~!e)l~g ~x~P:t.$.gP!t'~#~$~f11 ~'tt~ sJ,lchs;t!es;:as «shott~" :ahd-in no evenc;':Wi11si.1chSiles beina±ked"longtand l~ S:~~fo~t!1(),t~4;s!tpr(l)Xet.ter £tQm, Ir,aaatl1111~rtrl~n; to)~es A.;~~gag1i'UlQ.;,Dl~siQn()f. Market R~lation~datedJantiat}1 3,.2005;

Mt;;JamesA.BrigagliitllQ l?n,:qa:ry ,17~,2007 ' Pl~21J:
CRule 101 ofReguIati0rilvI
.Gen¢tauy~•.:R.illel0t·Q£R.eg1JlatfQ~Mis;al1 ~nti"m.'\nip~6Pl1 .• t¢gqi}),tipff·t:lia~ •• SQ1:li¢l:ttQ' l:eJ;t~in~){empt!oPslpJ;()mbits.,a~y<l4j~tripution •.parti¢ipatlt'·,.•.~nd #~"aft1Ii~teg.p~l:11.a5~fs·' ~~~~~g~1g~{~!i~a~ W~·un4etst~m4tliatwhilebrplwr"4e.a.lersth~h (ilt¢I:ld:er nepp~itSecuiitiestluo\lghlhe EL~r~i5a~¥~e:'C !;>tpk¢t"q¢!Uetsc6.p}doe.deetn:¢dto;be, "undit.'Wtlt't1ts·' br"ldiStributioriljarttdpaiits~,aS dlose term,s :Q:e d¢'fi1l,e,d in Rule tOQ(b), , ..,' The.Col~pyrespectfuUy .teq\le.1jt~,tha~ .tl1r;." C91l1ll1iss.i()11.grap.t ~ll .•etnption ftojI}. Rule to'l",:asdiscussedbe1Q"v,t'b/p¢rmitpets<mspatticipat!i1gin,.a distj:1P9t:lon,ofHeall$." $h~~~$Tr.tqfrp.e Ftltl9stablet t()r;9~,puF~h~e.J:e.d<t~111Qrertgage itl other s(l(!otldaJ:-' kettta.tlsac,t10nS in si!i.chHe~thShatesTMQutiP.g their.partii:ipatic)rt:in such disJtibutiop. r::~,:;;:j~P:::=~~ ~~~:;:~~:~::~~~~::;t=~c:~:;':il~~~~~:~ agernentin-,resttn,e1itcomp:ahy ~tid '1lnltin:Y~@ent@~t $~c;pt,ities'a;t~e~empt¢d.llPd~r:
Pllragraph ,(C)(4J.With~tsuch:ahexerriptioi1,theyc6uld n6t()perateJasmt~ndea. In 'viewof:the fo:t~gQi.ngrth¢CQlnpan}':tequ,¢.st$thatth~'Cpmtpj,s~iQngopfift\1.1'ha.ta,Sji;1,esWt oh~gistrati()n gfthe C()mpallyas'~ri()peh-efldrrulnage1llentirives+,111ehfc6tl1.pahy'aridthe LE<tALlulU~.#!iJi36752:o.1Q

Par.Jll-lastings ~'I:r~
!vIr. ]aines A.Btigitglii'ltlti
J~n]a.:ry f7,2Q07
Pa.ge21 red¢¢hiable.r,atuie.q£the He~lthSreJ;TMin Of~ad~t1; UIlitA,gg~ti()tls;tntn$at:ti9n$fu the HealthShares™ofthe Funds woulclbe exempfedJromRule-tOl on theha~is ofthe exceptioncontain'ed in (c'C4)ofs'l.u;h;rule. ThepW:PP$e qfRule 1(lli$tQpreyentper~pns,frQlncQnditionit:lgthemarket tofac:ilitate'a distribution.,Creat16nUtlitAggt~gatiotisofHealthShares1'M may beeteated~and Health.. S])~eSr~fin.,Grel1ti,ont.JtlitAfW~gftci911!l,.tl'l.1Y pete4t;emedin~kilidatN1!Vi,qn~yBusi;' nessIDay. f-loldersof.HealthSharesl'Malso have the benefit of.futra~da;y secondaryma:tket liql.1i4ityby'rirWe(}~:the~cl1an..gy'Ukti:Qg. ThllS, tl1e,s~9)nqarytn,.'\tlietptice,()fBealth￾Sbares'J:Mshauld,not vary substan.tia:llyfrorirtheiI' NAV.Bec"lUse ofthe ,.redeemability of" HealthSllarest~l.in' C:re!J.~on 'UnitAggregatipns,anysigni£i.cantdisparity,between,themar'- ketprtceOfHealthShates:rM aridN:A.V·'s1±6l.ll:cl.be.·eliriiiilated.byatbitta,ge;actiVity; Beta.use the:NAV ,q£Healtli$h}tt:esTtyl i~hac~ed on th~1llc'l'tketva1tle91 the"Funds' PQItfQIio; trans,ac￾tion.sirivol'Vii'g Health8haresJ'M:€ct61tlon.s'ff'om:iridtedefnptions,v1ththe·Ptiilcl.s,.pUt￾chasesan4 ,s~eS'"in ,the,secondatYlmuket)will nat aftecfNi:Y,.. $IDJi1arly,;suc:htransac" tions sneuldtlothavc,a. sigt'li£icariteffect:on.:t1ie market valUe QfH.ea]lliS:I1aresTM~ 'TheCom!?.anywsotespectfullyrequestst:¢lie£fton1'theproWslon.$ q£ 1l.w~ lQlto the.ej{':' tent necess~l];to pe.t:lnitp~rSqns or entitiesthat1T)aybedeeme(,"l to be participating in the dis.ti:ibut1oh 6fsh~res:hf FUJ.'ldSepudties:@) to putcha;se!"uAdSectlriu¢$ forthepu~pse Qfpurchasin~CrMtion UrritAggregations ofHealthShares™,and (ti) to tCl1der Health￾Sha1tesTN.i fot tedemptioufu Creation. Unit",t.ggtegatiQIl,s;an,dt(;i re¢elv¢F:I;1Ild$ec.u.riti¢sll$ Partofilie redemption proceeqs. The C:0111.pal1Y tequests that the. GOrnnUssion datify that,theteIlder,ofHealthShates'tM to the Funds (or'rerlempti;C:)fi a,rrdthe rcceipt'ofFund Securittesuponredelllptiondoes-llqt constitute ,abid'£df.ot p1ll:chasecifmycifsuth$eturities~,oi:~~(atte1Upttofuduceiaajt }1ersp~,.•t()bid,.•tbr.pr'p!1t.c.lt~s.e··~qoVertid.~:e~;tt}\thl'dlJ,~.,:fttc;appli~1:>le.t~tti5te(1periq~' fot tlle~ptiifi:dse'SofRU1l}>;101;". Redeii1ptfonentausilu,sepatate:bid foranyb'filie'Ftind S'ecurities.•Absent q~US\lalnir~\1tUs~es,thti F;l.111d:;WllLt1Qtpw:~h~e F~d$e~ties.l.ri 'the seeOl1~1.)tmatket to friIfill tedeml'tio!1 request. Tlierefoie,redelnpnonsofHemrlt· Shar¢$TM f:;aPtlQt ge¢),,-pec'ted to~£f~<:fth¢ lllaJ:ketppce qftlw ,Fu.q4 $eGutitie.s"..'\sindi," 9ted;above~theDisttibjjtot' will 60r erigage;1il any'seciorldary m..1:tket·ttaritlabt1orisin Health$hatesTM,eithertoritS own- atCoXul,t; 01'Eorimtestors:-In,a4ditio11. t:1::l.¢"Comp~l1Y helieves thatthe;pU1!ch~seo£Fili1d$ccurities,whileeJ.'lg~dii1 a distiibtiticiinvithtesped toSucn stocK, £ot the.~'W.'PQsebf:~(:quiring~Crel!,ti¢nIJ11itAggJ:e~tiQn QfJ'Iealftt.; ShatesTM,shQu1dbeexempted fromRule 1m. TheputposedfRuIe,101 is topteventper￾sons
froincondition.ingthe1natket to fncilitatca distti1:)l;j'jiOIl,. Application ofRwe'101in thi~ context would not'fu,rthertheatiti~111a,nipu1ative purposes underlying thertile; In vle\vofilielackofanyspedaifinal1C1aUncentive to Cteate Creation UmtAggtegations of .f-IealfhSha.resTM~c01:nbine4with apredictable la:ck ofanymeaningfgl potential fox the issuance andthe secoIidatymarketttadirig otHeaithSharestM to affectsigcl£'icantly tEGi\L:..mLE # 7()8(;1S20.1O

rvu. JamesA. Brtgagliano
J2tlt1~ty17 .20Q7
HealtJiShatest'Mpr1<::ing, appJiqatJ;oflotR.wel01to,libto}¢t;;d¢a1erQr QfhetperSQn,who 1llaybe par~cipatiqgina~sttih~ttiol1ofHealtl1~h~e$~!>I ,o.tFl1Jj4SeClJfities istiflt1ecess~~ andmapptoptiate:,andCQulctutulel:e$sarlIy hinder.btoker~dealersQrothetper$orts,in;theit c~e,;ttion' al1d5edelllIJcg(>na9~vities>,jlltheiigay-to-dayordin.~tybusil1essofb~yittga:nd sellitig se¢urities;a:nd:H~lthShares,TM"andthU:Suiidetn1ine thepQtehtia:l'hene:fidal"marke:t e£fe~fofHe::d!pS,hates'f~ tradWg. ' D. Rule 102ofRegpla:tion 1\1:
TheCornpany also tequeststhatdle COlmrUssion confirmthat,:as, a Ieswtq£,registration ofthe Company as an qpeii-endmanagemenfirivestment company and theteikemable nature ofHea:lthShares™ in Creatioil UnitAggre&1tibils"JQnhe reasons pxeviPus!y staU~d ' underthe t'eq~e.$t with resped:to relieruhder RuJi101 (F)(4).,transadiollsiil Health... Shates'rM Qfthe FJ:lildnvewd be exetlipted fro-tn, Rule1Q2ou, the ba~i~ ofthe e~ceptiort contained inpatagtaph (d)(4) ofsuch rule. Application ofRule 102 in thisconte:rtwotdd 'tiotfutth:etthe ailti..inanipulathi e pl.1fPQses underlyitlg: the tule~ Thqrp9seBtJlqle1q2~stq ,pj;'7r~ntp~1:sQ~S .(rom.,W~piJ?1JI~.tipg,the,ptice<~fllsR~ty dUt111gadistributionalid to protectthe integntyoftheoffeoog process by p.t:0liibitiiIg ~ctiyiti9'$ tl!l~tc:otd4flrtifi.<;ially.m£J.t1el1l:~tl1e 1.1l~rk~t,f()rtl1at p~tdc:td~r'sefu:rit:y. 'f;he(;JOtll'" pany respectfully reqqests tI1attI1e Lofuntissiofl,gtantatLexetnptidrt underpitagral'h(~).<of ltlf1e lQ~ lqaU9wtlw, FUtlqs to'.re4~etll Hth$1l~~;r~:ip.Oreat;i9+lUIlitA:ggte:ga,ti9.n.S! duiingthecontiriuousof£eriilgofHeaIthSliares™., The Companyrespecttally subtnits th~tdle redc:mptions<'Q¢S9ribedin. tbis,'lett;erdo n9t,.constitute 'a;tn.aIlipull1..t:iye·o;rdec:eptiye ptaeticewithin.tliepUWOgeofRu1ecl02aridateeligibleJ6tallexemption £tom thepiov1- sj(>:tl'sofRul¢ 1021:0al).o'\V tJle Fund.s to redeem Healtl:lShares™ in Creation Un,it:i:ggtega￾t19tl~e;Jri#:gtli~q()ritjh;\t9ti$()£f~gofH~-mthShm;es'ft.f. ' , Fbf,;the;;'teaspQ.s d¢s;cifbetl ib,cQnnectiQn::\vitiitl1e.t'e'iue$t~a,au1(f"tQ1;:t¢ne£;,t({d¢m.t1t'iQQ. tlanS~q~01Js.an~ •• s~CqntL'ltY'.;1n~et'fj:a~s~ctiQtl~1ti·tlleJFtW.?$r.HealtbSha,t~s.I~'arePtvi ablem.eansto'manil?ulliteth:~fl'rice Qfa FundS'e¢utitYaul.'in~Jfd1$tributi'dn,()f:sJic'h,sec:U7 ,.t1~. 'rheC9gtp,~l1ywmJ:~d¢~tptheG~ea,~rq1JJXWf+¥ggteg~t,i(msqfJ-Iealt4ShatesT~afthe NAY ofthe HealthShates1M.l\lthttiugh BealthShat~s"fMatettaded'Qn·the secondary mat- >f11!p$4are$IM,maYonly b~, te4eemedm Sreati(:wpnit4ggregatiq~.T4tJs,the Uori1.pa:hyDelieves,thatthe"redemption'dfHealthSharesTM,at NAV m.consfdetat1:o11prith clpallyr()tF:UI]l~Sc;':curiti<::sdoesll(lt iflYolve.tP-e,a:bgs<;§,fullJ B:we "102\Vas:int~nderl tpPlie- 'Vent E. Ru:le:14e..5 Rule,'14e-5'prohibits'a,((cov¢£edpersori" fto11ldirecdy oiinditecdypurchasihgo£iliiiang￾itigt()'pu:rchl\s¢~:t:1Y 'subject $¢cutiti.egpf teil(1et .Qtfer (otatelat¢tIstttitY), ¢'x<!;¢pt~s pitt qfsuch tenderqffet. Tile dealet-triatjaget ofate:t:1cl~t offetis a «Coveted per$onatld 1,3('AiJUILE#70ll67520,10

~Hastings
Mr.James A Brlgagliano
]anuary 17> 2001
P\lge 23 therefbtestibjecf totheRule.'"I'het:bfupanyrespectfully re<iueststhat the .Colllfuission ;g~'.\llt~n emp~9P ..·£~Qm··.~lltwT4e"~ •••~Q. p~t.at1y ••per~Pl1{in9tud.inga .•111ee~o.r.tJ;1el11'" bei:0tgahizatibnofanExCha~g~)actingasadealer-:tnan~ger?fatend&offerfor·aFund '.Se.p..·u.n.'tY.'.;.• ··..C..1.).Jor.e.d.'.eem.J;.l l..t1..l:Sh..•..... )I.r..e.~..T.M. in.. Ql;!e.Q.rm...•..0.re GIeat1.·o.•••..n. Um."t.. A.'. gg....rega.•...tiop~··..t€l. .••. th: e· C()mpany forFu~dSedttities'thatfua,yinc1ude~ secur1ti}r sublettt6suth tendet()ffet~and Cq:)topur~haseI-l~lthShAJ;7~~~dutingsllchtender()££er'wbichfI1ayirl<;lu~~.thedeliverr ofsecurities,subject'to suCh. tenderoffer". The 'acqUisition ofiiidividual EUll~Sectirititsby mns of'rede1!lI>tl?l1$ .tQthe C()lnp~p.y"voWaRe impraEt1~~~p.<:lt:xttemelyineJficie~til1 . vie"v·of'the·l"eC}uttement.thatalniitimum.·oflOOiIDDOHealthShateSTM .b~.redee1ned; ·Also? .,as.·•.di~cllssed,itT~e.l:~li~f re~lle~te?~nder .~egWonM,apglic:ati()n·Q~t1l~ R.ul~'~.prqP1bi. tiQl1"voW<:liiIlpedeth.evalid~tiduseftilmarket and.atbitt~~eactivity:wliich\Voilldassist .s,e¢onda+y·Jl'1llrk~tttaeUng;aIl4imptoYeI-J.eal.th.ShateT.M prJeiIlg..¢{(i.dency. Innqqase W014lai.ted~t:ript:iQfl.s.of·Heal.thSh~esJMor.secotl<:larymgrket b!an$act1olls·by.CotrerechPef-

• sQ11S•.beef£eqtedfoJ:th.eptU5gQseofta~ta~ga;tendei:~ffeJ; .• .AC:(:Qr~lY"l?mcl1a$es~d
  redemptiQilS()ffIe~tliShare$T.Min the'citcumstanc¢sde.s!=±ib¢4W9tlldliotappcilito :result m·t!ieab,Is($:J.t'wlit¢it-RUl¢ 14¢~S.i$·di.tected .. In..~g4iti9n",.~~~.,·Gottlpap.~reqlle~t~tl1at .. the§taff.ta~e· .•.().-tl~tJ.()l;!iPQsiti?n··tl,t14eJ!ltulet4e;. 5ifabtdket:..dealet(mcll1ditigatriemberofmemberoftlieN'YSEOtother E:J{chang~}act· ing.asade~er~11,ll\9Mer?f:atender <1fferfof~ F~p.(l$~c:lltitygl11:cbasessw;hse~ti~s.m the secondatymarket fot thepurpQse oftend¢tin~suc:h seCllrities tQ)?W7chaseone or p.t()te·G1:~ti(m (Jnit•.p.~re~tions,.QfHealtlfSl'w:c~'t}fI-, .•i£mgq~illCQgfommllCe.witht;p.e following:. (i)suchbids/orpurchases.areeffected mtheormmu:ycourscb£business.m ~QlllfesO(l'wjthl\ blt~k~to£70 oJ;lnQJ:e.$e.curitiesin WhiS1J~llY$eFl.ltitythatis;#leSJ.l9ject ofilmstribution,OrJlnyreferencesecur1l], doeSllot comprisembre than 5% ofthe value Qfthe'.pashetpurc;ha;seQ;P1: <ii)PtIJ:q~a$eSarei~feqted .~$.?9iustn.1el;!~sto. sJ.l~h,9a*etU1the orclinarycourse .o~busfllessasaTesult ofa chall~eitlt1lewmpositionoftheUnderlying Im1¢)(;..illilU·fliJ)·.sl1qb.•.•pids.o:t:.p;grchl;lSes;are-nQt••effe~ted..cr~.rthepw:pl?~e.()f·:f~cilihl.tit1g$P9h teiW[etdffet. Rutec tOh;:1:7 Rll1el:Qp'-17t:e'lWr~alli~suet()K··~·· plass .()fpJ.lbli¢lYt:r~(l~4.. se~w:ft1estggive~Qti~e •.ofqet￾tain sl'ecifiedactions(~..g.) .dividends, stock:splits·>rlghts.offcrings)reIatihgto~uchclasso£ s~Cqri~e'lhlncorcla1,1ce"Yi1:h1ttUe .1?p~17\p).. l?ar~gxaph(c).b~wev~r~ .sta.teatw.e fu1~.shal1norapply toiedeefuahlesecuritiesissued byopen-endinvestfilehtcQJnpahies Mldw¥tinves!mep.t~tstegi,st~r~llndert!W194:9 ~ct..B?'c.eptfottJ3;~f~cttb!ltHeali:h,. Shates{Minust ~eredeemed in.Greation Uhit-.size~ggtegatioils) .HealtbSliaresJ'M are re,.. 4~~:1lIa1?l~ se~tg'itic::§'iss}:ledbyp.pen,.ellq,inveSllIl.e(ltc01IJ,pa.mes.19 fortl).e. J:ea~o.n~<:lis·

• Mr;JafuesA. Bj:j'gagliano,
  J~n\l@Y 17, $QQ7
  P~O:e/24 '~). c,ils:s:e:d"ab'ove:ir.r¢ortrtet:ti()'lif;with:ilieJ;elieft~(fue~t~dJl1:J,d;er Re~ti()p: 1vI;'w~:):eqy.e,$J:~t tlle'e:temption un!ietp:aiagraplHc)qfRWe lOb"l'llj~;applicablb'ttfth~?Furi.tlli'. .
  IV. contlusiorr
  .... Polltenick P~g~~t; . c'~: '~:;:~~~:::~~~:n~'ofIVlarkct Reg~11ation