Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Notices 33555

5Cinergy notes that, since its capital commitment

to and corresponding limited partnership interest in

the Fund will be relatively small and actions of the

Fund’s limited partners will require the assent of

at least a majority (and often a supermajority) in

interest thereof, Cinergy will have no practical

ability—assuming it were so disposed—unilaterally

to direct or control the action of the Fund’s limited

partners with respect to the few matters over which

the limited partners exercise voting rights.

6The Independence Steam Electric Generating

Station is a two-unit, coal-fired electric generating

facility (‘‘Independence Station’’) located near

Newark, Arkansas.

(c) The vote of 75% in interest of the

limited partners is required to terminate the

Partnership in certain events.

(d) The vote of all limited partners is

required to extend the term of the

Partnership (except as described in (a)(iv)

above).

In addition, under California law, the

limited partners have the right to vote

on certain matters relating to the merger

of the Partnership with one or more

other entities.5 Cinergy states that such

limited voting rights are customary for

limited partners in a venture capital

fund and, in the aggregate, are less than

those potentially available to limited

partners consistent with applicable

California law. In addition, Cinergy

states that it will not consent to serve on

the Fund Committee and, therefore, will

have fewer voting rights than those of

the other limited partners, who will be

eligible to serve on that committee and

potentially to vote on the matters within

the Committee’s purview.

Entergy Corporation, et al. (70–8871)

Entergy Corporation (‘‘Entergy’’), 639

Loyola Avenue, New Orleans, Louisiana

70113, a registered holding company,

and its wholly owned subsidiary

company, Entergy Power Inc. (‘‘EPI’’),

900 South Shackleford Road, Little

Rock, Arkansas 72211 (collectively,

‘‘Declarants’’), have filed a declaration

under sections 12(c) and 12(d) of the

Act and rules 44, 46 and 54 thereunder.

By order dated August 27, 1990

(HCAR No. 25136), EPI was formed to

supply electricity at wholesale to

nonassociate companies and to acquire

ownership interests in Unit No. 2 of the

Independence Steam Electric Generating

Station (‘‘ISES 2’’) 6 and related assets,

as well as other utility assets. EPI

currently owns a 31.5% unified

ownership interest in ISES 2, a 15.75%

undivided ownership interest in certain

land and common facilities at the

Independence Station, and a 15.75%

undivided ownership interest in the

Certificate of Environmental

Compatibility and Public Need

(‘‘Certificate’’) for the Independence

Station. EPI also owned a 15.75%

undivided ownership interest in certain

leases, mine facilities and mine

equipment located in Wyoming

(‘‘Wyoming Property’’) used to supply

coal to the Independence Station.

EPI now proposes to sell, prior to

December 31, 1997, a portion of its

interest in ISES 2 and related property

to City Water & Light Plant of Jonesboro

(‘‘City Water & Light’’) for an

approximate purchase price of $37.8

million, representing an approximation

of the depreciated book value of the

assets at the time of sale. Specifically,

City Water & Light will acquire from EPI

(1) a 10% undivided ownership interest

in ISES 2 (equivalent to 84 megawatt of

capacity); (2) a 5% undivided

ownership interest in the Certificate; (3)

a 5% undivided ownership interest in

the land and common facilities at the

Independence Station; and (4) a 5%

undivided ownership interest in the

Wyoming Property.

EPI intends to apply the proceeds

from the sale to its general corporate

purposes, including to reduce its

operating and maintenance expenses

and to meet other working capital

needs. EPI further proposes, from time

to time through December 31, 1998, to

pay dividends to Energy out of the

unused proceeds from such sale.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–16452 Filed 6–26–96; 8:45 am]

BILLING CODE 8010–01–M

[Rel. No. IC–22035; 812–10098]

Trend Capital Management, Inc.;

Notice of Application

June 21, 1996.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of Application for

Permanent Exemption under the

Investment Company Act of 1940 (the

‘‘Act’’).

APPLICANT: Trend Capital Management,

Inc. (‘‘Trend’’).

RELEVANT ACT SECTIONS: Order requested

under section 9(c) of the Act granting an

exemption from section 9(a) of the Act.

SUMMARY: Trend Capital requests an

order from the prohibitions of section

9(a) to the extent necessary to relieve

Trend of any ineligibility resulting from

Trend’s employment of an individual

who is subject to a securities-related

injunction.

FILING DATES: The application was filed

on April 23, 1996 and amended on May

30, 1996. Applicant has agreed to file an

amendment during the notice period,

the substance of which is included in

this notice.

HEARING OR NOTIFICATION OF HEARING: An

order granting the application will be

issued unless the SEC orders a hearing.

Interested person may request a hearing

by writing to the SEC’s Secretary and

serving 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 July 16, 1996 and

should be accompanied by proof of

service on applicant, in the form of an

affidavit or, for lawyers, a certificate of

service. Hearing requests should state

the nature of the writers’ 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 SEC’s

Secretary.

ADDRESSES: Secretary, SEC, 450 5th

Street N.W., Washington, D.C. 20549.

Applicant, 950 Interchange Tower, 600

South Highway 169, Minneapolis,

Minnesota 55426.

FOR FURTHER INFORMATION CONTACT:

Marianne H. Khawly, Staff Attorney, at

(202) 942–0562, or Alison E. Baur,

Branch Chief, at (202) 942–0564

(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 SEC’s

Public Reference Branch.

Applicant’s Representations

1. Trend is a registered investment

adviser under the Investment Advisers

Act of 1940 and has one office in

Minneapolis, Minnesota. Since 1992,

Trend has served as an investment

adviser to more than 17 institutional

and individual clients. Trend does not

have a parent company and does not

own directly or indirectly any

subsidiary companies.

2. Since 1992, Trend has employed

Bryce Kommerstad (‘‘Kommerstad’’) as

Director of Marketing and Sales.

Kommerstad is responsible for general

sales and marketing, long-term client

development, and the servicing of

existing customer accounts.

Kommerstad does not develop or

manage Trend’s investment advisory

services nor does he participate in

decisions relating to the composition of

Trend’s model portfolios or the

allocation of client assets among the

various portfolios.

3. On July 18, 1988, Kommerstad was

enjoined by the U.S. District Court for

the District of Minnesota in an action

commenced by the SEC (SEC Litigation
33556 Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Notices

1The Compliance Committee consists of Trend’s

president, and chief financial officer. These

positions currently are held by Thomas G. Fox and

Darrel R. Lynn, respectively.

Release No. 11818 (July 26, 1988)). From

September 1982 through February 1984,

Kommerstad was a registered

representative employed by Dean Witter

Reynolds, Inc. at its Wayzata, Minnesota

office. In its complaint, the SEC alleged

that during this time Kommerstad

solicited several customers to purchase

shares of Continental Materials, Inc.

about which he made

misrepresentations and failed to state

material facts. Without admitting or

denying the allegations, Kommerstad

consented to the entry of a final

judgment of permanent injunction by

the court (the ‘‘Injunction’’). The court

enjoined Kommerstad from violating

section 10(b) of the Securities Exchange

Act of 1934 and rule 10b–5 thereunder

and section 17(a) of the Securities Act

of 1933. Kommerstad was also

suspended by the SEC for 12 months.

Since the entry of the Injunction in

1988, applicant states that Kommerstad

has not been enjoined by any court or

sanctioned by the SEC, any selfregulatory organization, or any state

securities commission. Also since 1988,

to the best of applicant’s knowledge,

there has not been a customer complaint

relating to Kommerstad. Applicant also

states that, to the best of its knowledge

and after reasonable and appropriate

inquiry, none of its other affiliated

persons are disqualified under section 9

of the Act.

4. Trend proposes to enter into

advisory or sub-advisory agreements

with various registered investment

management companies, pursuant to

which Trend will agree to provide

investment advisory services. As a

result of the Injunction, however,

Kommerstad is subject to the provisions

of section 9(a)(2) of the Act and Trend

is prohibited, under section 9(a)(3) of

the Act, from, among other things,

acting as investment adviser or

depositor of any registered investment

company, or principal underwriter for

any registered open-end investment

company unless an exemption is

obtained pursuant to section 9(c).

5. When Tend learned, in connection

with certain negotiations for an

investment advisory agreement, that

Kommerstad was statutorily disqualified

under section 9(a) of the Act, Trend

immediately developed and adopted the

following written procedures relating to

all prospective employees:

a. Whenever Trend intends to hire an

employee, its compliance committee

(the ‘‘Compliance Committee’’)

conducts a background investigation of

the prospective employee to determine

whether the person is subject to a

statutory disqualification.1 Depending

on the scope of other information

available to Trend, the background

investigation may include a fingerprint

check by the local law enforcement

agency, inquiries to registered securities

associations, and discussions with

previous securities related employers.

b. The prospective employee is

required to complete an employment

application that includes a

questionnaire specifically designed to

ensure disclosure of any criminal

conviction, injunction, or other

disqualifying condition.

c. If the prospective employee is

subject to a statutory disqualification,

then such person will not be offered

employment until: (i) a section 9(c)

order of exemption has been obtained;

(ii) the Compliance Committee

determines, with advice from counsel,

that a section 9(c) order of exemption

already exists that will cover the

person’s employment with Trend; or

(iii) the Compliance Committee

determines, with advice from counsel,

that the SEC has adopted a rule that

such person may rely upon.

d. If the prospective employee subject

to a statutory disqualification is offered

employment upon completion of one of

the three steps set forth in paragraph (c),

then such person’s scope of

employment will be restricted so that

the employee will not act in any

capacity as an investment adviser, or

depositor of any registered investment

company, or principal underwriter for

any registered open-end investment

company, registered unit investment

trust, or registered face amount

certificate company.

Applicant’s Legal Analysis

1. Trend requests a permanent order

under section 9(c) of the Act exempting

it from the disqualification provisions of

section 9(a) solely with respect to the

Injunction. Trend requests that the relief

extend to all entities that may become

affiliated persons (as that term is

defined in section 2(a)(3) of the Act) of

Trend in the future. No affiliated person

of Trend currently requires such relief

or currently intends to rely upon the

requested relief.

2. Section 9(a)(2) of the Act, in

pertinent part, prohibits any person who

has been enjoined from engaging in or

continuing any conduct or practice in

connection with the purchase or sale of

a security from acting as an employee,

officer, director, member of an advisory

board, investment adviser, or depositor

of any registered investment company,

or principal underwriter for any

registered open-end company, registered

unit investment trust, or registered face

amount certificate company. A company

with an employee or other ‘‘affiliated

person’’ ineligible to serve in any of

these capacities under section 9(a)(2) is

similarly ineligible under section

9(a)(3).

3. Section 9(c) of the Act provides

that, upon application, the SEC shall

grant an exemption from the provisions

of section 9(a), either unconditionally or

on appropriate temporary or other

conditional basis, if it is established that

the prohibitions of section 9(a), as

applied to the applicant, are unduly or

disproportionately severe, or the

conduct of such person has been such

as to not make it against the public

interest or protection of investors to

grant the application. In addition, 17

C.F.R. 200.30–5(a)(8) provides that the

Division of Investment Management,

under delegated authority, may issue a

permanent order under section 9(c) if:

the prohibitions of section 9(a) of the

Act, as applied to the applicant, may be

unduly or disproportionately severe, or

the applicant’s conduct has been such

as not to make it against the public

interest or the protection of investors to

grant the exemption; the prohibitions

arise under section 9(a)(3) of the Act

solely because the applicant employs, or

will employ, a person who is

disqualified under section 9(a) (1) or (2)

of the Act; and the employee does not

and will not serve in any capacity

directly related to providing investment

advice to, or acting as principal

underwriter for any registered open-end

company, registered unit investment

trust, or registered face amount

certificate company.

4. Trend states that the SEC’s 1988

action against Kommerstad did not

relate to investment company activities.

The terms of the Injunction do not bar

Kommerstad from acting as an affiliated

person of an investment adviser or

depositor of any registered investment

company, or principal underwriter for

any registered open-end investment

company, registered unit investment

trust, or registered face amount

certificate company. Trend argues that,

given the absence of any direct

relationship between the Injunction and

Kommerstad’s current and future

activities at Trend, it would be

unnecessary for the protection of

investors and inappropriate in light of

the circumstances to permit the

Injunction to bar Trend from providing

investment advisory or other services to

a registered investment company.
Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Notices 33557

2Currently, Thomas G. Fox serves as chief

investment officer, Darrel R. Lynn serves as

operations manager, and Wayne R. Eskew serves as

assistant portfolio manager.

3 If, in the future, Kommerstad’s marketing and

sales efforts for Trend bring him into contact with

a prospective client that is a registered investment

company, Kommerstad immediately will refrain

from developing the registered investment company

as a client and will refer the prospective client to

Trend. Kommerstad will not be compensated,

directly or indirectly, for such referrals.

5. Trend asserts that its investment

advisory services are and will be

developed and managed by Trend’s

chief investment officer, operations

manager, or assistant portfolio manager

(the ‘‘Investment Management Team’’).2

Kommerstad is not, nor will be become,

a member of the investment

management team. He does not and will

not serve in a policy-making role. He

does not and will not participate in the

management of Trend relating to

providing investment advice to

registered investment companies.3

Kommerstad is not, and will not

become, a member of Trend’s board of

directors and is not, and will not

become, an officer of Trend.

6. Kommerstad is affiliated with

Trend solely due to his status as an

employee. He presently owns less than

5% of the outstanding voting securities

of Trend. Kommerstad will not be

permitted to own 5% or more of the

outstanding voting securities, or

otherwise become affiliated with Trend

for any reason other than employment,

absent any future relief that may

specifically cover affiliations other than

employment.

7. Trend believes, for the reasons

stated above, that the section 9(a)

prohibitions regarding the Injunction

would be unduly or disproportionately

severe and Kommerstad’s conduct was

not such as to make it against the public

interest or protection of investors for the

SEC to grant the requested relief.

Applicant’s Condition

Applicant agrees that any order

granted by the SEC pursuant to the

application will be subject to the

following conditions:

Neither Trend, nor any affiliated

person of Trend relying upon the relief

granted pursuant to the application, will

employ Kommerstad in any capacity

related directly to the provision of

investment advice to, or acting as

depositor of, any registered investment

company, or to acting as principal

underwriter for any registered open-end

company, registered unit investment

trust, or registered face amount

certificate company.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–16453 Filed 6–26–96; 8:45 am]

BILLING CODE 8010–01–M

[Investment Company Act Release No.

22036; 811–6689]

Van Eck Trust; Notice of Application

June 21, 1996.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of Application for

Deregistration under the Investment

Company Act of 1940 (the ‘‘Act’’).

APPLICANT: Van Eck Trust.

RELEVANT ACT SECTION: Section 8(f).

SUMMARY OF APPLICATION: Applicant

requests an order declaring that it has

ceased to be an investment company.

FILING DATE: The application was filed

on May 14, 1996, and amended on June

14, 1996.

HEARING OR NOTIFICATION OF HEARING: An

order granting the application will be

issued unless the SEC orders a hearing.

Interested persons may request a

hearing by writing to the SEC’s

Secretary and serving 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 July

16, 1996, 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 may

request notification of a hearing by

writing to the SEC’s Secretary.

ADDRESSES: Secretary, SEC, 450 Fifth

Street, N.W., Washington, D.C. 20549.

Applicant, 99 Park Avenue, New York,

New York 10016.

FOR FURTHER INFORMATION CONTACT:

Diane L. Titus, Paralegal Specialist, at

(202) 942–0584, or Alison E. Baur,

Branch Chief, at (202) 942–0564

(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 from the SEC’s

Public Reference Branch.

Applicant’s Representations

1. Applicant is an open-end, nondiversified management investment

company organized as a Massachusetts

business trust. Applicant is a ‘‘feeder’’

fund in a ‘‘master/feeder fund’’ complex

and is composed of two series: Shortterm World Income Fund—Class A and

Class B.

2. On June 1, 1992, applicant

registered under the Act and filed a

registration statement on Form N–1A.

No registration was filed under the

Securities Act of 1933 (‘‘Securities Act’’)

because applicant’s beneficial interests

were issued solely in private placement

transactions that did not involve any

public offering within the meaning of

section 4(2) of the Securities Act. All of

applicant’s investors were ‘‘accredited

investors’’ within the meaning of

Regulation D under the Securities Act.

Applicant’s beneficial interests were

never offered to the public.

3. Applicant’s board of trustees

determined that it was in the best

interest of shareholders to liquidate its

Class A and Class B shares, after being

informed by Van Eck Associates

Corporation, applicant’s adviser

(‘‘Adviser’’) that it no longer planned to

reimburse applicant’s expenses. On

November 23, 1993, the board approved

a plan of liquidation.

4. Proxy materials were filed with the

SEC and mailed to shareholders for a

shareholders meeting held on December

27, 1993. Applicant’s shareholders

approved the liquidation plan at the

meeting.

5. On December 30, 1993, applicant

redeemed the units held in Short-term

World Income Fund Class A and Class

B and satisfied its known obligations.

On December 31, 1993, the liquidation

value was distributed in cash to the

Class A and B shareholders. The

liquidation value was determined in the

same manner as the Fund’s net asset

value.

6. All expenses incurred in

connection with the liquidation were

absorbed by the Adviser. No brokerage

commissions were paid in connection

with the liquidation.

7. Applicant has no security holders,

liabilities or assets. Applicant is not a

party to any litigation or administrative

proceeding. Applicant is not now

engaged, nor does it propose to engage,

in any business activities other than

those necessary for the winding up of its

affairs.

8. Applicant will file a Certificate of

Dissolution and other appropriate

documentation in Massachusetts, as

required by Massachusetts law.

For the SEC, by the Division of Investment

Management, under delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–16454 Filed 6–26–96; 8:45 am]

BILLING CODE 8010–01–M