51868 Federal Register / Vol. 71, No. 169 / Thursday, August 31, 2006 / Notices 

5Based on the number of manager of managers 

applications submitted since 1995, the staff 

estimates that 20 additional funds would seek to 

rely on the proposed rule each year. Approximately 

10 of those funds would be funds whose securities 

have already been publicly offered, and therefore 

would need to modify their advisory contracts with 

principal advisers. We estimate that the 10 new 

funds that would rely on the proposed rule would 

incur no additional burden or costs to include these 

provisions in the initial advisory contract. 

6Commission staff estimates that 159 funds 

(including 125 funds that currently rely on 

exemptive orders, 14 funds that have filed an 

application for an exemptive order, and 20 

additional funds that would have filed for 

exemptive relief during the first year after the rule’s 

adoption) would rely on the proposed rule during 

the first year after its adoption. After the first year, 

the staff estimates that each year 20 additional 

funds would rely on the proposed rule. 

7Based on discussions with fund representatives, 

the Commission estimates that on average each 

fund would hire 2 new subadvisers per year. 

Therefore, funds would be required to send to 

shareholders 2 information statements per year. 

Based on discussions with fund representatives, the 

Commission estimates that each fund would spend 

10 hours to prepare and mail each information 

statement. 

8This estimate is based on the following 

calculation: (4325 hours (year 1) + 3630 hours (year 

2) + 3630 hours (year 3)) ÷ 3 = 3861.6 hours. 

9This estimate is based on the following 

calculation: (507 responses (year 1) + 368 responses 

(year 2) + 368 responses (year 3)) ÷ 3 = 414.3 

responses. 

Commission staff estimates that after 

the first year, approximately 10 funds 5

would spend, on average, 5 hours 

annually (4 hours by in-house counsel, 

0.5 hours by fund directors, 0.5 hours by 

support staff) to modify their advisory 

contracts with their principal advisers 

to comply with the proposed rule. Thus, 

the Commission estimates these 

modifications would result in a total of 

50 burden hours and 10 responses. 

The proposed rule also would require 

funds to provide shareholders (and file 

with the Commission) an information 

statement within 90 days after entry into 

the subadvisory contract or after making 

a material change to a wholly-owned 

subsidiary’s existing subadvisory 

contract. The information statement 

must describe the agreement and 

contain all of the information that 

shareholders would have received in a 

proxy statement had a shareholder vote 

been held. This information collection 

is needed to ensure that shareholders 

are aware of the identity of the 

subadvisers that would be making 

investment decisions for the fund and 

the terms of each subadvisory contract. 

During the first 3 years after adoption 

of the proposed rule, Commission staff 

estimates that 179 funds 6 would each 

spend 20 hours 7 annually in preparing 

and distributing information statements. 

The total annual estimate for complying 

with the third party disclosure 

requirement of rule 15a–5 would be 

3580 burden hours and 358 responses. 

To arrive at the total information 

collection burden, staff has calculated a 

weighted average of the first year 

burden and the annual burden 

thereafter. Using a three-year period, the 

estimated weighted annual average 

information collection burden is 3862 

hours 8 and 414 responses.9

The collections of information 

required by proposed rule 15a–5 would 

be voluntary because rule 15a–5 is an 

exemptive rule and, therefore, funds 

may choose not to rely on the proposed 

rule. The filings with the Commission 

required under the proposed rule would 

be available to the public. An agency 

may not conduct or sponsor, and a 

person is not required to respond to a 

collection of information unless it 

displays a currently valid control 

number. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the collection of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

in writing within 60 days of this 

publication. 

Please direct your written comments 

to R. Corey Booth, Director/Chief 

Information Officer, Securities and 

Exchange Commission, C/O Shirley 

Martinson, 6432 General Green Way, 

Alexandria, Virginia 22312 or send am 

e-mail to: PRA_Mailbox@sec.gov. 

Dated: August 23, 2006. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 06–7300 Filed 8–30–06; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon written request, copies available 

from: Securities and Exchange 

Commission, Office of Filings and 

Information Services, Washington, DC 

20549. 

Extension: Rule 6c–7; SEC File No. 270–269; 

OMB Control No. 3235–0276. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for extension of the 

previously approved collection of 

information discussed below. 

Rule 6c–7 (17 CFR 270.6c–7) under 

the Investment Company Act of 1940 

(15 U.S.C. 80a–1 et seq.) (‘‘1940 Act’’) 

provides exemption from certain 

provisions of Sections 22(e) and 27 of 

the 1940 Act for registered separate 

accounts offering variable annuity 

contracts to certain employees of Texas 

institutions of higher education 

participating in the Texas Optional 

Retirement Program. There are 

approximately 80 registrants governed 

by Rule 6c–7. The burden of compliance 

with Rule 6c–7, in connection with the 

registrants obtaining from a purchaser, 

prior to or at the time of purchase, a 

signed document acknowledging the 

restrictions on redeemability imposed 

by Texas law, is estimated to be 

approximately 3 minutes per response 

for each of approximately 2,600 

purchasers annually (at an estimated 

$70 per hour), for a total annual burden 

of 130 hours (at a total annual cost of 

$9,100). 

Rule 6c–7 requires that the separate 

account’s registration statement under 

the Securities Act of 1933 (15 U.S.C. 77a 

et seq.) include a representation that 

Rule 6c–7 is being relied upon and is 

being complied with. This requirement 

enhances the Commission’s ability to 

monitor utilization of and compliance 

with the rule. There are no 

recordkeeping requirements with 

respect to Rule 6c–7. 

The estimate of average burden hours 

is made solely for the purposes of the 

Paperwork Reduction Act, and is not 

derived from a comprehensive or even 

a representative survey or study of the 

costs of Commission rules or forms. The 

Commission does not include in the 

estimate of average burden hours the 

time preparing registration statements 

and sales literature disclosure regarding 

the restrictions on redeemability 

imposed by Texas law. The estimate of 

burden hours for completing the 

relevant registration statements are 

reported on the separate PRA 

submissions for those statements. (See 

the separate PRA submissions for Form 

N–3 (17 CFR 274.11b) and Form N–4 (17 

CFR 274.11c). 

Complying with the collection of 

information requirements of the rules is 

necessary to obtain a benefit. An agency 

may not conduct or sponsor, and a 

person is not required to respond to, a 


erjones on PROD1PC72 with NOTICES
Federal Register / Vol. 71, No. 169 / Thursday, August 31, 2006 / Notices 51869 

collection of information unless it 

displays a currently valid control 

number. 

General comments regarding the 

above information should be directed to 

the following persons: (i) Desk Officer 

for the Securities and Exchange 

Commission, Office of Information and 

Regulatory Affairs, Office of 

Management and Budget, Room 10102, 

New Executive Office Building, 

Washington, DC 20503, or e-mail to: 

David_Roster@omb.eop.gov; and (ii) R. 

Corey Booth, Director/Chief Information 

Officer, Securities and Exchange 

Commission, C/O Shirley Martinson, 

6432 General Green Way, Alexandria, 

Virginia 22312, or send and e-mail to: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 30 days of 

this notice. 

Dated: August 23, 2006. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 06–7302 Filed 8–30–06; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

27469; 812–13297] 

Claymore Exchange-Traded Fund 

Trust, et al.; Notice of Application 

August 28, 2006. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’). 

ACTION: Notice of an application for an 

order under section 6(c) of the 

Investment Company Act of 1940 (the 

‘‘Act’’) for an exemption from sections 

2(a)(32), 5(a)(1), 22(d), 22(e), and 24(d) 

of the Act and rule 22c–1 under the Act, 

under section 12(d)(1)(J) for an 

exemption from sections 12(d)(1)(A) and 

(B) of the Act, and under sections 6(c) 

and 17(b) of the Act for an exemption 

from sections 17(a)(1) and (a)(2) of the 

Act. 

SUMMARY OF APPLICATION: Applicants 

request an order that would permit (a) 

series of open-end management 

investment companies, to issue shares 

(‘‘Fund Shares’’) that can be redeemed 

only in large aggregations (‘‘Creation 

Unit Aggregations’’); (b) secondary 

market transactions in Fund Shares to 

occur at negotiated prices; (c) dealers to 

sell Fund Shares to purchasers in the 

secondary market unaccompanied by a 

prospectus when prospectus delivery is 

not required by the Securities Act of 

1933 (‘‘Securities Act’’); (d) certain 

series to pay redemption proceeds, 

under certain circumstances, more than 

seven days after the tender of a Creation 

Unit Aggregation for redemption; (e) 

certain affiliated persons of the series to 

deposit securities into, and receive 

securities from, the series in connection 

with the purchase and redemption of 

Creation Unit Aggregations; and (f) 

certain registered management 

investment companies and unit 

investment trusts outside of the same 

group of investment companies as the 

series to acquire Fund Shares. 

APPLICANTS: Claymore Exchange-Traded 

Fund Trust and Claymore ExchangeTraded Fund Trust 2 (the ‘‘Trusts’’); 

Claymore Securities, Inc. (‘‘Claymore’’); 

and Claymore Advisers, LLC 

(‘‘Claymore Advisors’’). 

FILING DATES: The application was filed 

on May 27, 2006, and amended on July 

24, 2006. Applicants have agreed to file 

an amendment during the notice period, 

the substance of which is reflected in 

the 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 September 15, 2006, 

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, U.S. Securities 

and Exchange Commission, 100 F 

Street, NE., Washington, DC 20549–

1090; Applicants, 2455 Corporate West 

Drive, Lisle, IL 60532. 

FOR FURTHER INFORMATION CONTACT: 

Courtney S. Thornton, Senior Counsel at 

(202) 551–6812, or Michael W. Mundt, 

Senior Special Counsel, at (202) 551–

6821 (Division of Investment 

Management, Office 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 Public 

Reference Desk, U.S. Securities and 

Exchange Commission, 100 F Street, 

NE., Washington DC 20549–0102, 

telephone (202) 551–5850. 

Applicants’ Representations 

1. Each Trust is registered as an openend management investment company 

and is organized as a Delaware statutory 

trust that will offer multiple series (each 

series, a ‘‘Fund’’). Claymore ExchangeTraded Fund Trust will offer and sell 

Fund Shares of five Funds, each of 

which will track an index of equity 

securities of domestic issuers and nondomestic issuers meeting the 

requirements for trading in U.S. 

markets. Claymore Exchange-Traded 

Fund Trust 2 will offer and sell Fund 

Shares of two Funds (collectively with 

the Funds offered by Claymore 

Exchange-Traded Fund Trust, the 

‘‘Initial Funds’’), each of which will 

track an index of foreign equity 

securities (‘‘Foreign Funds’’). 

2. Each of Claymore and Claymore 

Advisors is registered as an ‘‘investment 

adviser’’ under the Investment Advisers 

Act of 1940, as amended (the ‘‘Advisers 

Act’’). Claymore Advisors will serve as 

the investment adviser to each of the 

Initial Funds (the ‘‘Adviser’’). In the 

future, the Adviser may enter into subadvisory agreements with other 

investment advisers to act as ‘‘subadvisers’’ with respect to particular 

Funds. Any sub-adviser will be 

registered under the Advisers Act or 

exempt from registration. Claymore, a 

broker-dealer registered under the 

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’), will serve as the 

principal underwriter and distributor 

for the Initial Funds (the ‘‘Distributor’’). 

3. Each Fund will hold certain 

securities (‘‘Portfolio Securities’’) 

selected to correspond generally to the 

price and yield performance, before fees 

and expenses, of a specified equity 

securities index (an ‘‘Underlying 

Index’’). No entity that creates, 

compiles, sponsors or maintains an 

Underlying Index is or will be an 

affiliated person, as defined in section 

2(a)(3) of the Act, or an affiliated person 

of an affiliated person, of the Trusts, the 

Adviser, the Distributor, promoter or 

any sub-adviser to a Fund. The Trusts 

may offer additional Funds in the future 

based on other Underlying Indices 

(‘‘Future Funds’’). Any Future Funds 

will (a) comply with the terms and 

conditions of any order granted 

pursuant to the application, and (b) be 

advised by the Adviser. 

4. The investment objective of each 

Fund will be to provide investment 

results that correspond generally to the 

price and yield performance, before fees 

and expenses, of its Underlying Index. 

Intra-day values of the Underlying Index 

will be disseminated every 15 seconds 

throughout the trading day. A Fund will 

utilize either a ‘‘replication’’ or 


erjones on PROD1PC72 with NOTICES