Federal Register / Vol. 73, No. 173 / Friday, September 5, 2008 / Notices 51867 

4 If the fund has been in operation fewer than two 

years, the measured period will be immediately 

following the fund’s first public offering. 

5 If the fund has been in operation fewer than five 

years, the measured period will be immediately 

following the fund’s first public offering. 

(1) Whether the Plan is accomplishing 

its purpose(s); 

(2) the reasonably foreseeable effects 

of the Plan on the Fund’s long-term total 

return in relation to the market price 

and NAV of the Fund’s common stock; 

and 

(3) the Fund’s current distribution 

rate, as described in condition V.B 

above, compared to the Fund’s average 

annual total return over the 2-year 

period, as described in condition V.B, or 

such longer period as the Board deems 

appropriate; and 

(c) based upon that determination, 

will approve or disapprove the 

continuation, or continuation after 

amendment, of the Plan; and 

2. The Board will record the 

information considered by it and the 

basis for its approval or disapproval of 

the continuation, or continuation after 

amendment, of the Plan in its meeting 

minutes, which must be made and 

preserved for a period of not less than 

six years from the date of such meeting, 

the first two years in an easily accessible 

place. 

VI. Public Offerings: The Fund will 

not make a public offering of the Fund’s 

common stock other than: 

A. A rights offering below net asset 

value to holders of the Fund’s common 

stock; 

B. an offering in connection with a 

dividend reinvestment plan, merger, 

consolidation, acquisition, spin-off or 

reorganization of the Fund; or 

C. an offering other than an offering 

described in conditions VI.A and VI.B 

above, unless, with respect to such other 

offering: 

1. the Fund’s average annual 

distribution rate for the six months 

ending on the last day of the month 

ended immediately prior to the most 

recent distribution declaration date,4

expressed as a percentage of NAV per 

share as of such date, is no more than 

1 percentage point greater than the 

Fund’s average annual total return for 

the 5-year period ending on such date; 5

and 

2. the transmittal letter accompanying 

any registration statement filed with the 

Commission in connection with such 

offering discloses that the Fund has 

received an order under section 19(b) to 

permit it to make periodic distributions 

of long-term capital gains with respect 

to its common stock as frequently as 

twelve times each year, and as 

frequently as distributions are specified 

in accordance with the terms of any 

outstanding preferred stock that such 

Fund may issue. 

VII. Amendments to Rule 19b–1: The 

requested relief will expire on the 

effective date of any amendment to rule 

19b–1 that provides relief permitting 

certain closed-end investment 

companies to make periodic 

distributions of long-term capital gains 

with respect to their outstanding 

common stock as frequently as twelve 

times each year. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–20614 Filed 9–4–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

28370; 812–13381] 

PIMCO Municipal Income Fund, et al.; 

Notice of Application 

August 29, 2008. 

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 section 

19(b) of the Act and rule 19b–1 under 

the Act. 

SUMMARY OF THE APPLICATION: 

Applicants request an order to permit 

certain registered closed-end 

management investment companies to 

make a greater number of capital gains 

distributions to holders of shares of 

their auction market preferred stock 

than is permitted by section 19(b) of the 

Act and rule 19b–1 under the Act to the 

extent necessary to comply with 

Internal Revenue Ruling 89–81, 1989–1 

C.B. 226 (‘‘Revenue Ruling 89–81’’) 

under the Internal Revenue Code of 

1986 (the ‘‘Code’’). 

APPLICANTS: PIMCO Municipal Income 

Fund, PIMCO Municipal Income Fund 

II, PIMCO Municipal Income Fund III, 

PIMCO California Municipal Income 

Fund, PIMCO California Municipal 

Income Fund II, PIMCO California 

Municipal Income Fund III, PIMCO 

New York Municipal Income Fund, 

PIMCO New York Municipal Income 

Fund II, PIMCO New York Municipal 

Income Fund III, PIMCO Municipal 

Advantage Fund Inc., PIMCO Corporate 

Income Fund, PIMCO Corporate 

Opportunity Fund, PIMCO High Income 

Fund, Nicholas-Applegate Convertible & 

Income Fund, Nicholas-Applegate 

Convertible & Income Fund II, PIMCO 

Floating Rate Income Fund, PIMCO 

Floating Rate Strategy Fund 

(collectively, the ‘‘Current Funds’’), and 

Allianz Global Investors Fund 

Management LLC (‘‘AGIFM’’). 

FILING DATES: The application was filed 

on May 2, 2007 and amended on 

January 10, 2008 and August 29, 2008. 

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 the 

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 26, 2008 and 

should be accompanied by proof of 

service on the 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, c/o AGIFM, 49th 

Floor, 1345 Avenue of the Americas, 

New York, NY 10105. 

FOR FURTHER INFORMATION CONTACT: 

Laura J. Riegel, Senior Counsel, at (202) 

551–6873 (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 

Commission’s Public Reference Room, 

100 F Street, NE., Washington, DC 

20549–1520 (telephone (202) 551–5850). 

Applicants’ Representations 

1. Each of the Current Funds is 

organized as a Massachusetts business 

trust or Maryland corporation. Each of 

the Current Funds is registered under 

the Act as a closed-end management 

investment company. AGIFM, an 

investment adviser registered under the 

Investment Advisers Act of 1940, serves 

as the investment adviser to each 

Current Fund. Each Current Fund has 

outstanding one class of common stock 

that trades on the New York Stock 

Exchange. Each Current Fund also has 

outstanding one or more series of 

preferred stock that pays out 

distributions at a rate generally set at 

periodic auctions (‘‘Auction Market 

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51868 Federal Register / Vol. 73, No. 173 / Friday, September 5, 2008 / Notices 

1A successor in interest is limited to entities that 

result from a reorganization into another 

jurisdiction or a change in the type of business 

organization. 

2All existing registered closed-end management 

investment companies that currently intend to rely 

on the requested order are named as applicants. 

Any Future Fund that relies on the order will 

comply with the terms of the application. 

3The maximum rate for a series of Auction 

Market Preferred Stock has been established or will 

be established in the organizational documents 

creating the applicable series of Auction Market 

Preferred Stock, by reference to independent 

lending rates. The dividend rate will be the 

maximum rate when sufficient clearing bids have 

not been made in an auction or an auction is unable 

to be held for any reason on the date the auction 

is scheduled to occur. 

Preferred Stock’’). Applicants request 

that the order apply to any registered 

closed-end management investment 

company currently advised or to be 

advised in the future by AGIFM 

(including any successor in interest) 1 or 

by an entity controlling, controlled by, 

or under common control (within the 

meaning of section 2(a)(9) of the Act) 

with AGIFM that determines to rely on 

the requested relief in the future (such 

investment companies, the ‘‘Future 

Funds’’ and together with the Current 

Funds, the ‘‘Funds’’).2

2. The board of directors or trustees of 

each Fund (a ‘‘Board’’) has set or will set 

the initial dividend rate for each series 

of Auction Market Preferred Stock. 

Subsequently, each Fund pays or will 

pay dividends generally at seven day 

intervals (or at such other interval or 

intervals as the Fund’s organizational 

documents permit) on its Auction 

Market Preferred Stock at a rate 

determined by auction or, under certain 

circumstances, at the maximum rate.3

3. Each Fund will make annual 

distributions of realized long-term 

capital gains, if any, to both the holders 

of its common stock and Auction 

Market Preferred Stock. Distributions of 

long-term capital gains are designed to 

comply with Revenue Ruling 89–81. 

Depending upon the amount of longterm capital gains realized in a fiscal 

year, the period of time between 

auctions, and the amount of the 

dividend as set by auction, each Fund 

may be required to make a greater 

number of long-term capital gains 

distributions to the holders of its 

Auction Market Preferred Stock than is 

permitted by section 19(b) and rule 19b–

1 to comply with Revenue Ruling 89–

81. Each Fund will make distributions 

of long-term capital gains to common 

stockholders in compliance with section 

19(b) and rule 19b–1. 

4. Applicants apply for an order 

pursuant to section 6(c) of the Act to 

exempt distributions of long-term 

capital gains that are made by the Funds 

to the holders of their Auction Market 

Preferred Stock in any one taxable year 

from the provisions of section 19(b) and 

rule 19b–1 to the extent necessary to 

comply with Revenue Ruling 89–81; 

provided that each Fund maintains in 

effect a distribution policy calling for 

periodic distributions to the holders of 

its Auction Market Preferred Stock (i.e., 

at seven day intervals or such other 

interval as specified in the 

organizational document creating such 

Auction Market Preferred Stock) at the 

rates determined by the Board at the 

time a series of Auction Market 

Preferred Stock is issued initially, and, 

thereafter pursuant to auction or at the 

maximum rate. 

Applicants’ Legal Analysis 

1. Section 19(b) of the Act generally 

makes it unlawful for any registered 

company to make long-term capital 

gains distributions more than once each 

year. Rule 19b–1 under the Act limits 

the number of capital gains dividends, 

as defined in the Code (‘‘distributions’’), 

that a registered investment company 

may make with respect to any one 

taxable year to one, plus a supplemental 

‘‘clean up’’ distribution made pursuant 

to section 855 of the Code not exceeding 

10% of the total amount distributed for 

the year, plus one additional capital 

gain dividend made in whole or in part 

to avoid the excise tax under section 

4982 of the Code. 

2. Revenue Ruling 89–81 requires a 

regulated investment company that has 

two or more classes of stock to make 

designations of various types of income 

in the same proportion as the total 

dividends distributed to each class for 

the tax year. To satisfy the proportionate 

designation requirements of Revenue 

Ruling 89–81, whenever a Fund realizes 

a long-term capital gain with respect to 

a given tax year, the Fund designates the 

required proportionate share of such 

capital gain to be included in the 

dividends on its Auction Market 

Preferred Stock and common stock. 

Each Fund calculates the ratio by 

dividing the total dividends paid to 

holders of each series of its Auction 

Market Preferred Stock during a taxable 

year by the total dividends paid to all 

classes during that year. Each Fund then 

declares and distributes designated 

long-term capital gains dividends to the 

holders of its common stock and 

Auction Market Preferred Stock in 

proportion to this ratio. 

3. Applicants state that under certain 

circumstances, a Fund will be able to 

comply with both Revenue Ruling 89–

81 and rule 19b–1. For example, if the 

entire dividend payment set at auction 

distributes in a single dividend the full 

amount of long-term capital gains 

required to be distributed by Revenue 

Ruling 89–81, the Fund will comply 

with both Revenue Ruling 89–81 and 

rule 19b–1. Applicants assert, however, 

that depending upon the amount of a 

Fund’s realized long-term capital gains 

in a taxable year, the period of time 

between auctions, the number of series 

of its Auction Market Preferred Stock 

outstanding, and the amount of the 

dividend set pursuant to an auction, a 

Fund may be required to make a greater 

number of long-term capital gains 

distributions to the holders of its 

Auction Market Preferred Stock under 

Revenue Ruling 89–81 than is permitted 

under section 19(b) and rule 19b–1. 

Applicants explain that while rule 19b–

1 does give regulated investment 

companies some flexibility with respect 

to long-term capital gains distributions, 

a Fund could have used all of the 

exceptions provided by rule 19b–1 and, 

because it would need to make 

additional distributions to the holders of 

series of its Auction Market Preferred 

Stock, be unable to comply with 

Revenue Ruling 89–81, section 19(b) 

and rule 19b–1 with respect to its 

Auction Market Preferred Stock. 

4. Applicants submit that one of the 

concerns leading to the enactment of 

section 19(b) and the adoption of rule 

19b–1 was that investors might be 

unable to distinguish between regular 

distributions of capital gains and 

distributions of investment income. In 

the case of Auction Market Preferred 

Stock, applicants state there is little 

chance for investor confusion since 

investors expect to receive only the cash 

amount representing the specified 

dividend distribution for any particular 

dividend period and the dividend rate 

is set through an auction process. With 

respect to each distribution to the 

holders of Auction Market Preferred 

Stock, applicants state that the Current 

Funds have adopted, and any Future 

Fund will adopt, procedures designed to 

comply with the disclosure 

requirements set forth in section 19(a) of 

the Act and rule 19a–1 under the Act. 

Applicants state that in accordance with 

such procedures, when the Current 

Funds or their service providers 

determine or reasonably estimate that a 

distribution will be comprised of a 

source other than the sources described 

in sections 19(a)(1) and 19(a)(2) of the 

Act, the Current Funds or their service 

providers include the source 

information required by rule 19a–1 on 

the wire confirmation that accompanies 

the electronic transfer of funds, which 

represents payment of the distribution. 

The Current Funds or their service 

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Federal Register / Vol. 73, No. 173 / Friday, September 5, 2008 / Notices 51869 

providers include a request that the 

recipient send the source information to 

the beneficial shareholder if the 

recipient is other than the beneficial 

shareholder of the stock to which the 

notice relates. 

5. Another concern underlying 

section 19(b) and rule 19b–1 is that 

frequent long-term capital gains 

distributions could facilitate improper 

distribution practices, including, in 

particular, the practice of urging an 

investor to purchase fund shares on the 

basis of an upcoming dividend (‘‘selling 

the dividend’’) where the dividend 

results in an immediate corresponding 

reduction in net asset value and would 

be, in effect, a return of the investor’s 

capital. Applicants state that the 

‘‘selling the dividend’’ concern is not 

applicable to Auction Market Preferred 

Stock, which entitles a holder to a 

specified periodic dividend and no 

more, and like a debt security, is 

initially sold at a price based on its 

liquidation preference, credit quality, 

dividend rate and frequency of 

payment. 

6. Applicants state that another 

concern leading to the adoption of 

section 19 and rule 19b–1, an increase 

in administrative costs, is not present 

because the Funds will make the same 

number of distributions with respect to 

their Auction Market Preferred Stock 

regardless of whether the 

characterization of such distributions is 

income or long-term capital gains. 

7. Section 6(c) of the Act provides that 

the Commission may exempt any 

person, security, or transaction or class 

or classes of any persons, securities, or 

transactions from any provision of the 

Act, if and to the extent that the 

exemption is necessary or appropriate 

in the public interest and consistent 

with the protection of investors and the 

purposes fairly intended by the policy 

and provisions of the Act. For the 

reasons stated above, applicants believe 

that the requested relief satisfies this 

standard. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–20615 Filed 9–4–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. IC–28371] 

Notice of Applications for 

Deregistration Under Section 8(f) of the 

Investment Company Act of 1940 

August 29, 2008. 

The following is a notice of 

applications for deregistration under 

section 8(f) of the Investment Company 

Act of 1940 for the month of August, 

2008. A copy of each application may be 

obtained for a fee at the Commission’s 

Public Reference Room, 100 F Street, 

NE., Washington, DC 20549–1520 (tel. 

202–551–5850). 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 

September 23, 2008, 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, U.S. Securities 

and Exchange Commission, 100 F 

Street, NE., Washington, DC 20549–

1090. 

For Further Information Contact: 

Diane L. Titus at (202) 551–6810, SEC, 

Division of Investment Management, 

Office of Investment Company 

Regulation, 100 F Street, NE., 

Washington, DC 20549–4041. 

Credit Suisse Japan Equity Fund, Inc. 

[File No. 811–7371] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. On April 22, 

2008, applicant made a liquidating 

distribution to its shareholders, based 

on net asset value. Expenses of $48,327 

incurred in connection with the 

liquidation were paid by Credit Suisse 

Asset Management, LLC, applicant’s 

investment adviser. Applicant has 

retained $41,722 in cash for the 

payment of outstanding expenses. 

Filing Date: The application was filed 

on July 24, 2008. 

Applicant’s Address: c/o Credit 

Suisse Asset Management, LLC, Eleven 

Madison Ave., New York, NY 10010. 

AIM Select Real Estate Income Fund 

[File No. 811–21048] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. On March 12, 

2007, applicant transferred its assets to 

a corresponding series of AIM 

Counselor Series Trust, based on net 

asset value. Expenses of $502,800 

incurred in connection with the 

reorganization were paid by applicant. 

Filing Date: The application was filed 

on August 8, 2008. 

Applicant’s Address: 11 Greenway 

Plaza, Suite 100, Houston, TX 77046–

1173. 

SEI Opportunity Master Fund, L.P. [File 

No. 811–21352] 

Summary: Applicant, a closed-end 

investment company and a master fund 

in a master-feeder structure, seeks an 

order declaring that it has ceased to be 

an investment company. On July 23, 

2008, applicant made a final liquidating 

distribution to its three feeder funds, 

based on net asset value. Expenses of 

$3,250 incurred in connection with the 

liquidation were paid by applicant. 

Filing Date: The application was filed 

on August 8, 2008. 

Applicant’s Address: One Freedom 

Valley Dr., Oaks, PA 19456. 

CGM Capital Development Fund [File 

No. 811–933] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. On June 27, 2008, 

applicant transferred its assets to CGM 

Focus Fund, a series of CGM Trust, 

based on net asset value. Expenses of 

$335,000 incurred in connection with 

the reorganization were paid by Capital 

Growth Management Limited 

Partnership, applicant’s investment 

adviser. 

Filing Date: The application was filed 

on August 11, 2008. 

Applicant’s Address: One 

International Place, Boston, MA 02110. 

AllianceBernstein International 

Research Growth Fund, Inc. [File No. 

811–8527] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. On July 25, 2008, 

applicant transferred its assets to 

AllianceBernstein International Growth 

Fund, Inc., based on net asset value. 

Expenses of $269,000 incurred in 

connection with the reorganization were 

paid by applicant. 

Filing Date: The application was filed 

on August 11, 2008. 

Applicant’s Address: 1345 Avenue of 

the Americas, New York, NY 10105. 

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