[Federal Register Volume 62, Number 85 (Friday, May 2, 1997)]
[Corrections]
[Page 24160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: X97-50502]



[[Page 24160]]


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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 230

[Release Nos. 33-7399; IC-22529; File No. S7-18-96]
RIN 3235-AH03


Proposed New Disclosure Option for Open-End Management Investment 
Companies

Correction

    In proposed rule document 97-5376 beginning on page 10943 in the 
issue of Monday, March 10, 1997 make the following corrections:
    (1) On page 10946, in the first column, footnote <SUP>27</SUP> 
should read
    <SUP>27</SUP> Proposed rule 498(c)(1). The cover page also would 
include the date of the profile. See infra note 84 and accompanying 
text regarding the proposed dating requirements. If the profile is 
distributed electronically or as part of another document (e.g., 
when the profile is printed in a magazine), rule 498 would require 
cover page information to appear at the beginning of the profile.
    (2) On the same page, in the third column, footnote <SUP>33</SUP> 
should read:
    <SUP>33</SUP> Proposed rule 498(c)(2)(i) (incorporating Item 
2(a) of proposed Form N-1A). In providing this disclosure, a fund 
could refer to its investment objectives as investment goals.
    (3) On page 10947, in the third column:
    (a) Footnote <SUP>45</SUP> should read:
    <SUP>45</SUP> The 1996 Profile Letter, supra note 9, at 2, 
requires a fund to disclose without further explanation that it is 
non-diversified.
    (b) Footnote <SUP>46</SUP> should read:
    <SUP>46</SUP> Proposed rule 498 (c)(2)(iii) (incorporating Item 
2(c) of proposed Form N-1A).
    (c) Footnote <SUP>47</SUP> should read:
    <SUP>47</SUP> The 1996 Profile Letter, supra note 9, at 2-3, 
requires the bar chart and table to appear under a caption relating 
to a fund's past performance. To help investors use the information 
in the bar chart and table, the proposed rule would require a fund 
to explain how the information illustrates the fund's risks and 
performance. Item 2 of proposed Form N-1A would provide the 
following example of this explanation: This information illustrates 
the fund's risks and performance by showing changes in the fund's 
performance from year to year and by showing how the fund's average 
annual returns for one, five, and ten years compare to those of a 
broad measure of market performance. A fund also would be required 
to disclose that how the fund has performed in the past is not 
necessarily an indication of how the fund will perform in the 
future.
    (d) Footnote <SUP>48</SUP> should read:
    <SUP>48</SUP> See Risk Concept Release, supra note 5.
    (4) On page 10948, in the first column, Footnote <SUP>51</SUP> 
should read:
    <SUP>51</SUP> See 1996 Profile Letter, supra note 9, at 3 
(permitting a fund, at its option, to compare its returns to those 
of an appropriate broad-based securities market index).
    (5) On the same page, in the second column:
    (a) Footnote <SUP>56</SUP> should read:
    <SUP>56</SUP> Proposed rule 498(c)(2)(iv) (incorporating Item 3 
of proposed Form N-1A). See also Item 2(a) of Form N-1A.
    (b) Footnote <SUP>57</SUP> should read:
    <SUP>57</SUP> See Form N-1A Release, supra note 1 (proposing 
amendments to improve fee table disclosure).
    (6) On the same page, in the third column:
    (a) ``Other Disclosure Requirements'' should read ``3. Other 
Disclosure Requirements''.
    (b) Footnote <SUP>58</SUP> should read:
    <SUP>58</SUP> Proposed rule 498(c)(2)(v). Consistent with Item 
6(a)(2) of proposed Form N-1A, rule 498 would not require 
information about the portfolio manager of a money market fund or an 
index fund.
    (c) Footnote <SUP>59</SUP> should read:
    <SUP>59</SUP> See also ICI Survey Letter, supra note 10, at 9 
(recommending that the profile include this information).
    (d) Footnote <SUP>61</SUP> should read:
    <SUP>61</SUP> The 1996 Profile Letter, supra note 9, at 3, 
permits a fund to disclose that 3 or more persons manage the fund's 
portfolio, without regard to the percentage of the portfolio managed 
by any one person.
    (7) On page 10949, in the first column:
    (a) Footnote <SUP>64</SUP> should read:
    <SUP>64</SUP> Information about a fund's cash management 
practices generally would not be disclosed in the section of the 
profile that discusses the fund's main investment strategies. See 
Form N-1A Release, supra note 1 (prospectus disclosure would focus 
on a fund's principal strategies, which generally would not include 
the fund's cash management practices).
    (b) Footnote <SUP>65</SUP> should read:
    <SUP>65</SUP> See 1996 Profile Letter, supra note 9, at 3 
(permitting a fund to provide disclosure to the effect that 3 or 
more sub-advisers manage the fund's portfolio without regard to the 
percentage of the portfolio managed by any one sub-adviser). To 
further limit the scope of this exception, a sub-adviser solely 
responsible for managing a fund's cash positions would not be 
counted in determining whether 3 or more sub-advisers manage the 
fund's portfolio.
    (8) On the same page, in the second column footnote <SUP>66</SUP> 
should read:
    <SUP>66</SUP> Proposed rule 498(c)(2)(vi), (vii).
    (9) On the same page, in the third column:
    (a) ``Application to Purchase Shares'' should read ``4. Application 
to Purchase Shares''.
    (b) Footnote <SUP>69</SUP> should read:
    <SUP>69</SUP> Proposed rule 498(c)(2)(viii). If a fund, as a 
result of its investment objectives or strategies, expects its 
distributions primarily to consist of ordinary income (or short-term 
capital gains that are taxed as ordinary income) or capital gains, 
the fund would be required to provide disclosure to that effect.
    (10) On page 10950, in the first column ``Disclosure Safeguards'' 
should read ``C. Disclosure Safeguards''.
    (11) On page 10952, in the first column:
    (a) ``General Request for Comments'' should read ``III. General 
Request for Comments''.
    (b) Footnote <SUP>98</SUP> should read
    <SUP>98</SUP> Proposed rule 498(c)(4).
    (12) On the same page, in the third column ``Summary of Initial 
Regulatory Flexibility Analysis'' should read ``V. Summary of Initial 
Regulatory Flexibility Analysis''.
BILLING CODE 1505-01-D