Federal Register / Vol. 63, No. 88 /Thursday, May 7, 1998 / Notices 25247

that it is able to meet its financial

obligations for the development of its

extended stay facilities and to facilitate

its planned rapid growth. Applicant

states that pending the use of that

money to finance capital expenditures

and current operations, the money has

been invested in high quality short-term

investments.

b. Public Representations of Policy.

Applicant asserts that it has not made

any public representations that would

suggest that it is engaged in any

business other than its extended stay

lodging business. Applicant states that

its prospectuses, reports to

shareholders, and other filings with the

SEC have exclusively focused on its

lodging business. Applicant also states

that all of its marketing and advertising

has focused entirely on its extended stay

lodging business.

c. Activities of Officers and Directors.

Applicant represents that its directors

and executive officers dedicate virtually

all of their efforts toward furthering

applicant’s efforts in developing,

owning, and managing extended stay

lodging facilities. Applicant has

approximately 2,900 employees.

Applicant states that its short-term

investments are managed by an assistant

to its Chief Financial Officer. Applicant

represents that the assistant devotes less

than 25% of his working time to these

activities, and the Chief Financial

Officer spends less than 2% of his time

supervising that activity. Applicant

states that no other employee is

involved in the management of the

short-term investments.

d. Nature of Assets. Applicant

indicates that its short-term

investments, which are limited to bank

deposits, U.S. Government securities,

and short-term, high quality fixed

income corporate/Government

obligations maturing in less than 90

days from the date of investment,

constituted approximately 0.1% of

applicant’s total assets as of December

31, 1997. Applicant also represents that

if the proceeds of its March 1998

financings had been included in

applicant’s assets at December 31, 1997,

applicant would have had short-term

investments of approximately 29% of its

total assets. Furthermore, applicant

asserts that, depending upon market

conditions, it may raise additional

capital and/or conduct additional

financings that would increase

substantially the ratio of its short-term

investments to total assets. Applicant

states that its short-term investments

and total assets are valued at fair value

in accordance with the requirements of

section 2(a)(41) of the Act.

e. Sources of Income. Applicant

indicates that, as of December 31, 1997,

it derived approximately 0.8% of its

total revenues from investment income.

Applicant states that it may significantly

increase its short-term investments, as

well as the ratio of income from these

investments to total revenues, if it

conducts additional capital raising

transactions or financings.

6. Applicant thus believes that it

meets the factors that the SEC considers

in determining whether an issuer is

primarily engaged in a business other

than that of investing, reinvesting,

owning, holding, or trading in

securities.

For the SEC, by the Division of Investment

Management, pursuant to delegated

authority.

Jonathan G. Katz,

Secretary.

[FR Doc. 98–12148 Filed 5–6–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. IC–23166]

Notice of Applications for

Deregistration Under Section 8(f) of the

Investment Company Act of 1940

April 30, 1998.

The following is a notice of applicants

for deregistration under section 8(f) of

the Investment Company Act of 1940 for

the month of April, 1998. A copy of

each application may be obtained for a

fee at the SEC’s Public Reference

Branch, 450 Fifth St., N.W.,

Washington, DC 20549 (tel. 202–942–

8090). An order granting each

application will be issued unless the

SEC orders a hearing. Interested persons

may request a hearing on any

application by writing to the SEC’s

Secretary at the address below and

serving the relevant 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

May 26, 1998, and should be

accompanied by proof of service on the

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 who wish to be notified of a

hearing may request notification by

writing to the Secretary, SEC, 450 Fifth

Street, N.W., Washington, DC 20549.

For Further Information Contact: Diane

L. Titus, at (202) 942–0564, SEC,

Division of Investment Management,

Office of Investment Company

Regulation, Mail Stop 5–6, 450 Fifth

Street, N.W., Washington, DC 20549.

InterCapital Managed Municipal Trust

[File No. 811–7187], TCW/DW Term

Trust 2001 [File No. 811–8222], TCW/

DW Emerging Markets Government

Income Trust [File No. 811–8310]

Summary: Each applicant seeks an

order declaring that it has ceased to be

an investment company. Each applicant

has never made a public offering of its

shares and does not propose to make a

public offering or engage in business of

any kind.

Filing Dates: Each application was

filed on March 24, 1998.

Applicants’ Address: Two World

Trade Center, New York, New York

10048.

Putnam Capital Growth and Income

Fund [File No. 811–7063]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. On February 6,

1995, applicant made a liquidating

distribution to its sole shareholder of

record at net asset value. All other

shareholders redeemed or exchanged

their shares of applicant at net asset

value prior to February 6, 1995.

Applicant did not incur any expenses in

connection with the liquidation, and

unamortized organizational expenses

were paid by applicant’s investment

adviser.

Filing Dates: The application was

filed on October 3, 1995 and amended

on April 2, 1996, September 17, 1996

and March 17, 1998.

Applicant’s Address: One Post Office

Square, Boston, MA 02109.

Fortis Benefits Separate Account A

[File No. 811–2445]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. Applicant is a

separate account organized as a unit

investment trust. No assets are currently

retained in Applicant; all assets were

redeemed at net asset value. No

expenses were incurred by Applicant in

connection with the redemption of its

assets.

Filing Date: The application was filed

on March 23, 1998.

Applicant’s Address: 500 Bielenberg

Drive, Woodbury, MN 55125.

Fortis Benefits Separate Account B [File

No. 811–2446]

Summary: Applicant seeks an order

declaring that it has ceased to be

investment company. Applicant is a

separate account organized as a unit

investment trust. No assets are currently

retained in Applicant; all assets were
25248 Federal Register / Vol. 63, No. 88 /Thursday, May 7, 1998 / Notices

redeemed at net asset value.No expenses

were incurred by Applicant in

connection with the redemption of its

assets.

Filing Date: The application was filed

on March 23, 1998.

Applicant’s Address: 500 Bielenberg

Drive, Woodbury, MN 55125.

Management of Managers Municipal

Bond Fund [File No. 811–3755]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company.On December 31,

1987, applicant transferred all of its

assets and liabilities to the Municipal

Bond Fund, a series of Management of

Managers Group of Funds, based on the

relative net asset values. The expenses

of the reorganization were borne by

applicant.

Filing Dates: The application was

filed on November 12, 1997 and

amended on April 22, 1998.

Applicant’s Address: 25 Sylvan Road,

Westport, CT 06880

Burridge Funds [File No. 811–7801]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. On December 30,

1997, applicant made a liquidating

distribution to its shareholder at the net

asset value per share. Applicant’s

investment adviser, The Burridge Group

LLC, has agreed to pay all expenses

incurred in connection with the

liquidation, which are expected to be

between $20,000 and $25,000.

Filing Dates: The application was

filed on February 13, 1998, and

amended on April 23, 1998.

Applicant’s Address: 115 South

LaSalle Street, Chicago, Illinois 60603.

The Garzarelli Funds [File No. 811–

7877]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. By December 10,

1997, applicant distributed its assets to

its securityholders at the net asset value

per share. Expenses of $127,194

incurred in connection with the

liquidation will be borne by applicant’s

investment adviser.

Filing Date: The application was filed

on December 30, 1997.

Applicant’s Address: 100 South

Wacker Drive, Suite 2100, Chicago,

Illinois 60606–4002.

AAHSA Trust [811–8680]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. Applicant

consists of two separate series, the

Money Market Fund and the Short-Term

Bond Fund. On November 27, 1996 all

shares of the Money Market Fund were

redeemed at net asset value and seed

money was returned to the sponsor. A

public offering of shares of the ShortTerm Bond fund was not made and

applicant does not propose to make a

public offering of shares of this Fund.

No expenses were incurred in the

liquidation of applicant.

Filing Date: The application was filed

on December 19, 1997 and applicant has

agreed to file an amendment during the

notice period.

Applicant’s Address: 901 E Street,

N.W., Washington, D.C. 20004.

The Pilot Funds [811–3517]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. On May 16, 1997,

pursuant to the applicable Reorganizing

Agreements, applicant’s eleven series,

Pilot Equity Income Fund, Pilot ShortTerm U.S. Treasury Fund, Pilot ShortTerm Diversified Assets Fund, Pilot

Diversified Bond Income Fund, Pilot

Growth Fund, Pilot Growth And Income

Fund, Pilot Intermediate Municipal

Bond Fund, Pilot Intermediate U.S.

Government Securities Fund, Pilot

Missouri Short-Term Exempt Fund,

Pilot Municipal Bond Fund, and Pilot

Short-Term Tax-Exempt Diversified

Fund, transferred their assets and stated

liabilities into corresponding Acquiring

Funds of Nations Fund, Inc. and

Nations Fund Trust based on the net

asset value per share. On May 23, 1997,

pursuant to applicable Reorganizing

Agreements, applicant’s three series,

Pilot International Equity Fund, Pilot

Small Capitalizing Equity Fund and

Pilot U.S. Government Securities Fund,

transferred all of their assets and stated

liabilities to corresponding Acquiring

Funds of Nations Fund, Inc. and

Nations Fund Trust based on the net

asset value per share. Each Reorganizing

Fund distributed Acquiring Fund Share

to its shareholders in liquidation of the

Reorganizing Fund. NationsBanc

Advisors, Inc. and its affiliates bore

approximately $1,348,000, and the

remaining Acquiring Funds bore

$141,000, in expenses in connection

with the transaction.

Filing Date: The application was filed

on April 2, 1998 and applicant has

agreed to file an amendment during the

notice period.

Applicant’s Address: 3435 Stelzer

Road, Columbus, Ohio 43219.

Allied Financial Corporation II [File

No. 811–6345], Allied Investment

Corporation II [File No. 811–6354]

Summary: Each applicant requests an

order declaring that it has ceased to be

an investment company. On December

31, 1997, Allied Financial Corporation II

merged into Allied Capital Financial

Corporation (‘‘Financial I’’), and Allied

Investment Corporation II merged into

Allied Investment Corporation

(‘‘Investment I’’) ) collectively, the

‘‘Mergers’’). The shares of common

stock of each applicant issued and

outstanding were converted into the

right to receive cash, in the aggregate, in

the amount of $0.05. At the time of the

Mergers, Financial I and Investment I

were each registered under the Act as a

closed-end management investment

company. Subsequently, on January 5,

1998, Financial I and Investment I each

elected to be regulated as a business

development company under the Act.

At the time of the Mergers, applicants,

Financial I, and Investment I were

wholly-owned subsidiaries of Applied

Capital Corporation (‘‘ACC’’), a business

development company. Expenses

incurred in connection with the Mergers

totaled approximately $700 for each

applicant and were borne by ACC.

Filing Dates: Each application was

filed on January 14, 1998. Each

applicant has agreed to file an

amendment, the substance of which is

incorporated in this notice, during the

notice period.

Applicants’ Address: 1666 K Street,

N.W., 9th Floor, Washington, D.C.

20006–2803.

Allied Development Corporation [File

No. 811–3553]

Summary: Applicant requests an

order declaring that it has ceased to be

an investment company. On December

18, 1997, applicant merged into its sole

shareholder, Allied Capital Corporation

(‘‘ACC’’), a business development

company (the ‘‘Merger’’). On that date,

each share of applicant’s outstanding

common stock was canceled. Expenses

incurred in connection with the Merger

totaled approximately $700 and were

borne by ACC.

Filing Dates: The application was

filed on January 14, 1998. Applicant has

agreed to file an amendment, the

substance of which is incorporated in

this notice, during the notice period.

Applicant’s Address: 1666 K Street,

N.W., 9th Floor, Washington, D.C.

20006–2803.

Colonial Value Investing Portfolios—

Equity Portfolio [File No. 811–5461]

Summary: Applicant requests an

order declaring that it has ceased to be

an investment company. On June 5,

1992, applicant’s three series,

Diversified Return Fund, Inflation

Hedge Fund, and Growth Fund,

transferred their assets and liabilities to

corresponding series of Colonial Trust
Federal Register / Vol. 63, No. 88 /Thursday, May 7, 1998 / Notices 25249

1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4.

3See letter from Scott Van Hatten, Legal Counsel,

Derivative Securities, Amex, to Michael Walinskas,

Senior Special Counsel, Division of Market

Regulation, Commission (April 20, 1998)

(‘‘Amendment No. 1’’). Amendment No. 1 specifies

that on April 16, 1998, the Exchange’s Board of

Governors approved the submission of the instant

proposed rule change to the Commission.

4Exchange Act Release No. 23573 (August 28,

1986), 51 FR 31859 (September 5, 1986).

5Consistent with customary Exchange practice, at

least two weeks prior to the implementation of the

proposed change to the Institutional Index value

and the resulting adjustments to the outstanding

Institutional Index options contracts, the Exchange

will issue an information circular to its members

setting forth the Index’s current and new divisors,

the manner in which the Index will be adjusted, the

adjusted contract symbols, amounts and strike

prices for outstanding XII series and the effective

date of the adjustments.

III based on the relative net asset value

per share. Applicant paid approximately

$60,878 in expenses related to the

reorganization.

Filing Dates: The application was

filed on April 23, 1997 and amended on

April 16, 1998.

Applicant’s Address: One Financial

Center, Boston, Massachusetts 02111.

The Brazilian Investment Fund, Inc.

[File No. 811–6248]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. By December 31,

1997, applicant completed a liquidating

distribution to its stockholders as net

asset value. Expenses incurred in

connection with the liquidation totaled

$281,530 and were borne by applicant.

Filing Dates: The application was

filed on January 7, 1998. Applicant has

agreed to file an amendment during the

notice period, the substance of which is

incorporated in this notice.

Applicant’s Address: c/o Morgan

Stanley Asset Management Inc., 1221

Avenue of the Americas, New York,

New York 10020.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Jonathan G. Katz,

Secretary.

[FR Doc. 98–12147 Filed 5–6–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39933; File No. SR–AMEX–

98–15]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by the American Stock

Exchange, Inc., and Amendment No. 1

Thereto Relating to a Reduction in the

Value of, and Increase in Position and

Exercise Limits for, the Institutional

Index

April 30, 1998.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on April 7,

1998, the American Stock Exchange,

Inc. (the ‘‘Amex’’ or the ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (the ‘‘Commission’’) the

proposed rule change as described in

Items I and II below, which Items have

been prepared by the Exchange. On

April 20, 1998, the Amex filed an

amendment to the proposal.3 The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons and to

grant accelerated approval for the

proposed rule.

I. Self Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Amex proposes to split the

Institutional Index (the ‘‘Index’’ or

‘‘XII’’) to one-half its current value and

correspondingly amend Exchange Rule

904C to double the position and

exercise limits for XII options.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, the

Amex included statements concerning

the purpose of and basis for the

proposed rule change. No written

comments were solicited or received

with respect to the proposed rule

change. The text of these statements

may be examined at the places specified

in Item IV below. The Amex has

prepared summaries, set forth in

sections A, B, and C below, of the most

significant aspects of such statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and the

Statutory Basis for, the Proposed Rule

Change

(1) Purpose

On August 28, 1986, the Commission

granted the Exchange approval to permit

the trading of options on the

Institutional Index, a broad market

index based on the 75 major stocks

currently held in the highest dollar

amounts in institutional portfolios that

have a market value of more than $100

million in investment funds.4 Initially,

the aggregate value of the stocks

contained in the Institutional Index was

reduced by a divisor to establish an

index benchmark value of 250. Since its

creation, and as of the date of this filing,

the level of the Institutional Index has

increased nearly fivefold from 250 to

1218.

As a consequence of the Index’s rising

value, premium levels for the

Institutional Index options have also

risen. These higher premium levels have

been cited as a principal factor that has

discouraged retail investors and some

small market professionals from trading

these Index options. As a result of the

foregoing, the Exchange is proposing to

decrease the Institutional Index to onehalf of its present value. The Exchange

believes that decreasing the Index value

may make the Index options more

attractive to retail investors and other

market professionals and therefore more

competitive with other products in the

marketplace.

To decrease the Index’s value, the

Exchange will double the divisor used

in calculating the Index. The Exchange

suggests that the lower valued Index

will result in a substantial lowering of

the dollar values of options premiums

for the Institutional Index contracts. The

Exchange plans to adjust outstanding

series similar to the manner in which

equity options are adjusted for a 2-for1 stock split.5 On the effective date of

the split ‘‘ex-date,’’ the number of

outstanding Institutional Index option

contracts will be doubled and strike

prices halved. No other changes are

proposed as to the components of the

Index, its method of calculation (other

than the change in the divisor),

expiration style of the options or any

other Index specification.

a. Position and Exercise Limits.

Currently, position and exercise limits

for the Institutional Index equal 100,000

contracts on the same side of the market

of which no more than 25,000 contracts

may be used to realize any differential

in price between the Institutional Index

and the securities underlying the Index.

Although the limitation of up to 25,000

contracts for purposes of realizing any

differential in price between the

Institutional Index and the securities

underlying the Index will remain

unchanged, the Exchange proposes to

double the Index’s position and exercise

limits to 200,000 contracts on the same

side of the market. The change in

position and exercise limits will be

made in conjunction with the

simultaneous reduction of the Index’s

value and the doubling of the number of

contracts. Accordingly, an investor who

is currently at the 100,000 contract limit

will, as a result of doubling the number

of contracts, automatically hold 200,000