Notice2022-18099

VALIC Timed Opportunity Fund, Inc.; Notice of Intention To Rescind Order

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
August 23, 2022

Issuing agencies

Securities and Exchange Commission

Abstract

The Commission intends to rescind an order issued on May 16, 1984, on an application filed by VALIC Timed Opportunity Fund, Inc. (the "Applicant"), which granted exemptions from sections 18(f)(1) and 17(f) of the Act (the "Exemptive Order ").\1\ ---------------------------------------------------------------------------

Full Text

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<title>Federal Register, Volume 87 Issue 162 (Tuesday, August 23, 2022)</title>
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[Federal Register Volume 87, Number 162 (Tuesday, August 23, 2022)]
[Notices]
[Page 51723]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-18099]


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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 34677; 812-05753]


VALIC Timed Opportunity Fund, Inc.; Notice of Intention To 
Rescind Order

August 17, 2022.
AGENCY: Securities and Exchange Commission (the ``Commission'').

ACTION: Notice of the Commission's intention to rescind an order 
pursuant to section 38(a) of the Investment Company Act of 1940 
(``Act'').

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SUMMARY: The Commission intends to rescind an order issued on May 16, 
1984, on an application filed by VALIC Timed Opportunity Fund, Inc. 
(the ``Applicant''), which granted exemptions from sections 18(f)(1) 
and 17(f) of the Act (the ``Exemptive Order '').\1\
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    \1\ VALIC Timed Opportunity Fund, Inc., Investment Company Act 
Release Nos. 13891 (Apr. 17, 1984) (notice) and 13943 (May 16, 1984) 
(order). The Applicant has undergone several name changes since the 
order was issued, and since December 31, 2001 has been named the 
``Asset Allocation Fund'' (a series company of the registrant VALIC 
Company I). See VALIC Company I, Statement of Additional 
Information, Co, Oct. 1, 2015, <a href="https://www.sec.gov/Archives/edgar/data/719423/000119312515327556/d93331d485bpos.htm">https://www.sec.gov/Archives/edgar/data/719423/000119312515327556/d93331d485bpos.htm</a>.
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    Hearing or Notification of Hearing: An order rescinding the 
Exemptive Order will be issued unless the Commission orders a hearing. 
Interested persons may request a hearing by emailing the Commission's 
Secretary at <a href="/cdn-cgi/l/email-protection#8eddebedfcebfaeffcf7fda3c1e8e8e7edebcefdebeda0e9e1f8"><span class="__cf_email__" data-cfemail="9fccfafcedfaebfeede6ecb2d0f9f9f6fcfadfecfafcb1f8f0e9">[email&#160;protected]</span></a>. Hearing requests should be 
received by the Commission by 5:30 p.m. on September 12, 2022. 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 emailing the 
Commission's Secretary at <a href="/cdn-cgi/l/email-protection#396a5c5a4b5c4d584b404a14765f5f505a5c794a5c5a175e564f"><span class="__cf_email__" data-cfemail="2774424455425346555e540a6841414e44426754424409404851">[email&#160;protected]</span></a>.

ADDRESSES: Secretary, Commission: <a href="/cdn-cgi/l/email-protection#e0b3858392859481929993cdaf8686898385a0938583ce878f96"><span class="__cf_email__" data-cfemail="d784b2b4a5b2a3b6a5aea4fa98b1b1beb4b297a4b2b4f9b0b8a1">[email&#160;protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: Jessica Leonardo, Senior Counsel, at 
202-551-7125, (Division of Investment Management, Chief Counsel's 
Office).

SUPPLEMENTARY INFORMATION: The Commission issued the Exemptive Order 
exempting the Applicant from the provisions of section 18(f)(1) and 
section 17(f) of the Act to the extent necessary to permit it to invest 
in stock index futures contracts and interest rate futures contracts 
for hedging purposes. The Exemptive Order was expressly subject to 
compliance with the undertakings made in the application.
    On November 2, 2020, the Commission adopted rule 18f-4, which 
provides an updated and more comprehensive approach to the regulation 
of registered investment company (``fund'') and business development 
company use of derivatives and certain other transactions by replacing 
existing Commission and staff guidance with a codified, consistent 
regulatory framework.\2\ The undertakings of the Exemptive Order 
relating to section 18(f)(1) and the Applicant's investments in stock 
index futures contracts and interest rate futures contracts are 
superseded by rule 18f-4, which became effective on February 19, 2021 
and with which funds will have to comply as of August 19, 2022. In 
addition, as a general matter, a fund trading in exchange-traded 
futures and commodity options can rely on rule 17f-6, which permits 
funds to maintain their assets with futures commission merchants in 
connection with futures contracts and commodity options traded on U.S. 
and foreign exchanges.\3\
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    \2\ See Use of Derivatives by Registered Investment Companies 
and Business Development Companies, Investment Company Act Release 
No. 34084 (Nov. 2, 2020) at <a href="https://www.sec.gov/rules/final/2020/ic-34084.pdf">https://www.sec.gov/rules/final/2020/ic-34084.pdf</a>.
    \3\ See 17 CFR 270.17f-6; Custody of Investment Company Assets 
with Futures Commissions Merchants and Commodity Clearing 
Organizations, Investment Company Act Release No. 22389 (Dec. 11, 
1996), <a href="https://www.sec.gov/rules/final/ic-22389.txt">https://www.sec.gov/rules/final/ic-22389.txt</a>. We also note 
that based on its filings on Form N-CEN, the Applicant has not 
reported that it relies on the Exemptive Order.
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    Section 38(a) of the Act states, in relevant part, that the 
Commission shall have authority to rescind an order as is necessary or 
appropriate to the exercise of the powers conferred upon the Commission 
elsewhere in the Act.\4\ On the basis of rules 18f-4 and 17f-6 and the 
discussions in the releases adopting each of those rules, and on the 
authority granted to the Commission in section 38(a) of the Act, the 
Commission intends to rescind the Exemptive Order.
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    \4\ 15 U.S.C. 80a-37(a). (stating in relevant part, ``[t]he 
Commission shall have authority from time to time to make, issue, 
amend, and rescind such rules and regulations and such orders as are 
necessary or appropriate . . . .'').

    By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2022-18099 Filed 8-22-22; 8:45 am]
BILLING CODE 8011-01-P


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Indexed from Federal Register on August 23, 2022.

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