---------------------------------------------------------------------------

    \776\ Our amendments would also require prominent placement of
disclosures regarding investments in derivatives in a fund's
financial statements, rather than allowing such schedules to be
placed in the notes to the financial statements. See supra Part
II.C.
---------------------------------------------------------------------------

    We estimate that that there are 11,230 management companies that
would have to comply with these amendments.\777\ In addition, we
estimate that these amendments would likely increase the time spent
preparing, reviewing and certifying reports, if adopted. The extent to
which a fund's burden would increase as a result of the proposed
amendments would depend on the extent to which the fund invests in the
instruments covered by many of the amendments. We estimate that, on an
annual basis, funds generally will incur an additional 9 burden hours
in the first year \778\ and an additional 3

burden hours for filings in subsequent years in order to comply with
the proposed amendments.\779\ Amortized over three years, the average
annual hour burden associated with the amendments for Regulation S-X
would be 5 hours per fund.\780\ Accordingly, the estimated total annual
average hour burden associated with the amendments would be
56,150.\781\
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    \777\ This estimate includes 9,259 mutual funds (including money
market funds), 1,403 ETFs (1,411 ETFs--8 UIT ETFs) and 568 closed-
end funds and is based on internal SEC data as well as ICI
statistics as of December 31, 2014 available at http://www.ici.org/research/stats.
    \778\ With respect to the amendments to Article 6 of Regulation
S-X, we estimate that each fund would spend an average of five hours
to initially comply with the amendments. For example, amendments to
Article 6-07.1 would likely require funds to identify non-cash
income and put a process in place to capture it in the financial
statements. In addition, some funds would also likely move their
schedules from financial statement notes to the financial statements
themselves. With respect to the amendments requiring disclosure of
the components of a custom basket/index, some funds voluntarily
provide this disclosure now, but others do not; we recognize that
funds would be affected by this requirement differently depending on
their investments.
    With respect to the amendments to article 12 of Regulation S-X,
we estimate each fund would spend an average of four hours to
initially comply with the amendments. For example, while accounting
guidance already requires funds to identify the level of each
security (such as Level 3 securities), we estimate there will be an
increased burden in adding another note to the financial statements.
This increased burden would vary depending on the information
already reported by funds in their financial statements. Likewise,
while many funds voluntarily identify illiquid securities in their
schedule of investments, the funds that do not make this disclosure
would bear an initial burden to comply with these amendments.
    \779\ With respect to the amendments to Article 6 of Regulation
S-X, we estimate each fund would require two hours to comply with
the requirements in each subsequent year. We likewise estimate that
each fund would require one hour to comply with the requirements of
the proposed amendments to Article 12 in each subsequent year.
    \780\ The estimate is based on the following calculation: (9
hours + (3 hours x 2))/3 = 5.
    \781\ The estimate is based on the following calculation: 5
hours x 11,230 management investment companies = 56,150.
---------------------------------------------------------------------------

    We estimate that the annual external cost burden of compliance with
the information collection requirements of rule 30e-1, which is
currently $31,061 per fund, will not change as a result of the proposed
amendments to Regulation S-X.\782\ We further estimate that the total
annual external cost burden for rule 30e-1 would be $348,815,030.\783\
External costs include, for example, the costs for funds to prepare,
print, and mail the reports.
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    \782\ Because the proposed amendments would largely reorganize
information currently reported by funds in their financial
statements, either voluntarily or because it is required, we do not
believe the external costs, such as printing and mailing costs, will
increase as a result of the amendments.
    \783\ This estimate is based on the following calculation:
11,230 funds x$31,061 = $348,815,030. The current total annual cost
burden of rule 30e-1 is $333,905,750, which reflects the higher
estimated number of funds subject to rule 30e-1 at the time of the
last renewal for the rule. See supra note 775.
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2. Rule 30e-2
    Rule 30e-2 requires registered UITs that invest substantially all
of their assets in shares of a management investment company to send
their unitholders annual and semiannual reports containing financial
information on the underlying company.\784\ Specifically, rule 30e-2
requires that the report contain all the applicable information and
financial statements or their equivalent, required by rule 30e-1 under
the Investment Company Act to be included in reports of the underlying
fund for the same fiscal period.\785\ Rule 30e-2 also permits UITs to
rely on the householding provision in rule 30e-1 to transmit a single
shareholder report to investors who share an address.\786\
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    \784\ Rule 30e-2.
    \785\ As discussed above, rule 30e-1 (together with Forms N-1A
and N-2) essentially requires management investment companies to
transmit to their shareholders, at least semi-annually, reports
containing the financial statements required by Regulation S-X.
    \786\ See rule 30e-2(b); see also supra note 774 and
accompanying text.
---------------------------------------------------------------------------

    Compliance with the disclosure requirements of rule 30e-2 is
mandatory. Responses to the disclosure requirements are not kept
confidential.
    The Commission currently estimates that the annual burden
associated with rule 30e-2, including the householding requirements, is
121 hours per respondent. The Commission currently estimates that the
total hour burden is approximately 91,960 hours.\787\
---------------------------------------------------------------------------

    \787\ 760 UITs (the estimated number of UITs the last time the
rule's information collections were submitted for PRA renewal in
2012) x 121 hours per UIT = 91,960.
---------------------------------------------------------------------------

    As discussed above, we are proposing certain amendments to Articles
6 and 12 of Regulation S-X that, if adopted, would likely increase the
time spent preparing, reviewing and certifying reports.\788\ The extent
to which a UIT's burden increases as a result of the proposed
amendments would depend on the extent to which an underlying fund
invests in the instruments covered by many of the amendments. We
estimate that there are 727 UITs that may be subject to the proposed
amendments.\789\ We also estimate that, on an annual basis, UITs
generally will incur an additional 9 burden hours in the first year
\790\ and an additional 3 burden hours for filings in subsequent years
in order to comply with the proposed amendments.\791\ Amortized over
three years, we estimate that the average annual hour burden associated
with the proposed amendments would be 5 hours per fund.\792\
Accordingly, we estimate that the total average annual hour burden
associated with the proposed amendments to Regulation S-X would be
3,635 hours.\793\
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    \788\ As discussed above, the amendments would: (1) Require new,
standardized disclosures regarding fund holdings in open futures
contracts, open forward foreign currency contracts, and open swap
contracts, and additional disclosures regarding fund holdings of
written and purchased options; (2) update the disclosures for other
investments, as well as reorganize the order in which some
investments are presented; (3) amend the rules regarding the general
form and content of fund financial statements; and (iv) require a
new disclosure in the notes to the financial statements relating to
a fund's securities lending activities. In addition, our amendments
would also require prominent placement of disclosures regarding
investments in derivatives in a fund's financial statements, rather
than allowing such schedules to be placed in the notes to the
financial statements.
    \789\ This estimate is based on the number of UITs that filed
Form N-SAR with the Commission as of December 31, 2014.
    \790\ See supra note 778.
    \791\ See supra note 779.
    \792\ The estimate is based on the following calculation: (9
hours + (3 hours x 2))/3 = 5.
    \793\ The estimate is based on the following calculation: 5
hours x 727 UITs = 3,635.
---------------------------------------------------------------------------

    In addition, we estimate that the annual external cost burden of
compliance with the information collection requirements of rule 30e-2,
which are currently $20,000 per respondent, will not change as a result
of the proposed amendments to Regulation S-X.\794\ We further estimate
that the total annual external cost burden for rule 30e-2 would be
$14,540,000.\795\ External costs include, for example, the costs for
the funds to prepare, print, and mail the reports.
---------------------------------------------------------------------------

    \794\ See supra note 782.
    \795\ This estimate is based on the following calculation: 727
UITs x $20,000 = $14,540,000. The current total annual cost burden
of rule 30e-2 is $15,200,000, which reflects the higher estimated
number of UITs at the time of the last renewal for the rule. See
supra note 787.
---------------------------------------------------------------------------

D. Option for Web Site Transmission of Shareholder Reports

    We are also proposing new rule 30e-3, which would permit, but not
require, a fund to transmit its reports to shareholders by posting them
on its Web site, as long as the fund meets certain other conditions of
the rule regarding (a) availability of the report and other materials,
(b) shareholder consent, (c) notice to shareholders, and (d) delivery
of materials upon request of the shareholder.\796\ Reliance on the rule
would be voluntary; however, compliance with the rule's conditions is
mandatory for funds relying on the rule. Responses to the information
collections would not be kept confidential.
---------------------------------------------------------------------------

    \796\ See proposed rule 30e-3.
---------------------------------------------------------------------------

1. Availability of Report and Other Materials and Delivery Upon Request
    Proposed rule 30e-3 would provide that a fund's annual or
semiannual report to shareholders would be considered transmitted to a
shareholder of record if certain conditions set forth in the rule are
satisfied. Among these conditions are the requirements that (i) the
fund's shareholder report, any previous shareholder report transmitted
to shareholders of record within the last 244 days, and in the case of
a fund that is not an SBIC, the fund's complete portfolio holdings as
of the close of its most recent first and third fiscal quarters, be
publicly accessible, free of charge, at a specified Web site

address,\797\ and (ii) the fund (or a financial intermediary through
which shares of the fund may be purchased or sold) must send a paper
copy of any of the materials discussed in (i) above to a shareholder
upon request.\798\
---------------------------------------------------------------------------

    \797\ Proposed rule 30e-3(b)(1)(i)-(iii).
    \798\ Proposed rule 30e-30(e).
---------------------------------------------------------------------------

    We estimate that 11,957 funds could rely on proposed new rule 30e-
3.\799\ Of these funds, we estimate that 90% of all funds (or 10,761
funds) would rely on proposed rule 30e-3.\800\ Of this 10,761, we
estimate 9,634 are funds relying on the summary prospectus rule (rule
498 under the Securities Act) and, thus, currently posting annual and
semiannual shareholder reports on their Web sites. Accordingly, with
respect to these funds, we estimate that annual compliance with the
posting requirements of proposed rule 30e-3 will require a half hour
burden per fund.\801\
---------------------------------------------------------------------------

    \799\ This estimate includes 9,259 mutual funds (including money
market funds), 1,403 ETFs (1,411 ETFs--8 UIT ETFs), 568 closed-end
funds, and 727 UITs (including UIT ETFs) based on ICI statistics,
Form N-SAR filings, and internal SEC data as of December 31, 2014.
See ICI statistics available at http://www.ici.org/research/stats.
    \800\ Open-end funds relying on the summary prospectus rule,
rule 498 under the Securities Act, are required to post their annual
and semi-annual reports online. See rule 498(e)(1). In 2014, 9,634
funds filed a summary prospectus, which amounts to 90% of all open-
end funds (9,634/(9,259 mutual funds + 1,403 ETFs (not including
UITs))). Because these funds are already posting their shareholder
reports online, we estimate that they will rely on proposed rule
30e-3 to transmit their reports. Based on the percentage of funds
that rely on the summary prospectus rule, which, like proposed rule
30e-3, requires posting of documents online while also reducing
printing and mailing costs for funds, we estimate that 90% of
closed-end funds and UITs (or 1,166 funds ((568 closed-end funds +
727 UITs) x 90%) will rely on proposed rule 30e-3. Accordingly, we
estimate that 90% of all funds ((9,634 open-end funds + 1,166 other
funds)/11,957 funds) would also rely on proposed rule 30e-3.
    \801\ Because each of these funds is already required to have a
Web site and to post its annual and semiannual shareholder reports
on this Web site, we estimate that proposed rule 30e-3 will only
result in each of these funds incurring a half hour burden per year
to post their first and third quarter portfolio holdings on their
Web sites, including in the first year of compliance with the rule.
---------------------------------------------------------------------------

    Of the remaining funds estimated to rely on proposed rule 30e-3, we
further estimate that approximately 90% of those funds \802\ (or 1,014
funds) already have a Web site.\803\ With respect to these funds, we
estimate that the posting requirements of proposed rule 30e-3 will
require a one and half hour burden per fund to post the required
documents online, both in the first year and annually thereafter. For
the remaining 10% of funds (or 113 funds) that we estimate will rely on
the proposed rule but that do not have a Web site,\804\ we estimate
initial compliance with the posting requirements will require
approximately 24 hours per fund of internal fund staff time to develop
a Web page and post the required documents on the Web page.\805\ In
addition, we estimate that each of these funds would spend
approximately four hours of professional time to maintain and update a
Web page with the required information on a quarterly basis.\806\
---------------------------------------------------------------------------

    \802\ See Money Market Fund Reform 2010 Release, supra note 13,
at 10092 (estimating that 20% of money market funds would have to
develop a Web site in connection with new Web site posting
requirements). Because five years have passed since we estimated 80%
of money market funds had Web sites, and given the increased use of
the Internet, we believe it is appropriate to estimate that 90% of
funds currently have Web sites.
    \803\ This estimate is based on the following calculation:
(10,761 funds--9,634 open-end funds relying on the summary
prospectus rule) x 90% = 1,014 funds.
    \804\ This estimate is based on the following calculation:
(10,761 funds--9,634 open-end funds relying on the summary
prospectus rule) x 10% = 113 funds.
    \805\ See Money Market Fund Reform 2010 Release, supra note 13,
at 10092 (estimating 24 hours of internal staff time to develop a
Web page). Funds that are part of a larger fund complex may realize
certain economies of scale in connection with creating a Web site.
For purposes of our analysis, we do not account for such economies
of scale.
    \806\ See id. (estimating 4 hours of professional time to
maintain and update a Web page with the required money market fund
information on a monthly basis). Funds that are part of a larger
fund complex may realize certain economies of scale in connection
with maintaining and updating a Web site. For purposes of our
analysis, we do not account for such economies of scale.
---------------------------------------------------------------------------

    Accordingly, we estimate that the posting requirements will result
in an average annual hour burden of 0.84 hours per fund in the first
year of compliance \807\ and 0.76 hours per fund for each of the next
two years.\808\ Amortized over three years, the average annual hour
burden would be 0.79 hours per fund.\809\ In sum, we estimate that the
posting requirements of proposed rule 30e-3 would impose an average
total annual hour burden of 8,447 hours on applicable funds.\810\
---------------------------------------------------------------------------

    \807\ This estimate is based on the following calculations:
9,634 open-end funds relying on the summary prospectus rule x .5
hours = 4,817 hours; 1,014 funds with a Web site but not relying on
the summary prospectus rule x 1.5 hours = 1,521 hours; 113 funds
without a Web site x 24 hours in the first year = 2,712 hours; 4,817
hours + 1,521 hours + 2,712 hours = 9,050; 9,050/10,761 = 0.84
hours.
    \808\ This estimate is based on the following calculations:
9,634 open-end funds relying on the summary prospectus rule x .5
hours = 4,817 hours; 1,014 funds with a Web site but not relying on
the summary prospectus rule x 1.5 hours = 1,521 hours; 113 funds
without a Web site x (4 hours x 4 quarters) = 1,808 hours; 4,817 +
1,521 + 1,808 = 8,146; 8,146/10,761= 0.76 hours.
    \809\ The estimate is based on the following calculation: (0.84
+ (0.76 x 2))/3 = 0.79 hours.
    \810\ This estimate is based on the following calculations:
9,050 hours for the first year + (8,146 hours x the 2 following
years) = 25,342; 25,342/3 = 8,447.
---------------------------------------------------------------------------

    In addition, with respect to those funds that would rely on
proposed rule 30e-3 but that do not currently have a Web site, we
estimate that the posting requirements of the proposed rule will result
in an external cost burden of $2000 per fund in the first year to
develop a Web site,\811\ but no cost burden in subsequent years.\812\
We further estimate that the amortized annual external cost burden
associated with developing a Web site would be $667.\813\ In the
aggregate, we estimate that the annual total external cost burden with
respect to these funds would be $75,371.\814\ With respect to those
funds that currently have Web sites, we estimate that the posting
requirements of the proposed rule will not result in any external
costs.\815\ The external cost burden is the cost of goods and services
purchased in connection with complying with the rule, which, with
respect to the posting requirements, would include costs associated
with development of a Web site.
---------------------------------------------------------------------------

    \811\ See, e.g., How Much Should a Web Design Cost, Budgeting
for a Professional Design for a Small Business Web site, available
at http://webdesign.about.com/od/beforeyoustartaWebsite/a/how-much-should-a-web-design-cost.htm (suggesting that a fairly basic Web
site would cost $1250-$1500); What Does a Web site Cost? Web site
Development Costs, available at http://www.atilus.com/what-does-a-Website-cost-Website-development-costs/ (suggesting a basis Web site
can be created for $2000-$5000). We believe that a Web site
developed for purposes of proposed rule 30e-3 could be fairly basic
considering the Web site would only need to accommodate posting of
the required documents.
    \812\ We believe the collection of information burden in
subsequent years will be handled internally and have, therefore,
accounted for this burden in our estimate of the hourly burden for
subsequent years. See supra note 806.
    \813\ This estimate is based on the following calculation:
$2000/3 = $667.
    \814\ This estimate is based on the following calculation: 113
funds x $667 = $75,371.
    \815\ Because these funds maintain their Web sites for reasons
other than compliance with proposed rule 30e-3, we do not attribute
any costs related to such maintenance to proposed rule 30e-3.
---------------------------------------------------------------------------

    Furthermore, we also estimate that funds may incur external costs
in connection with the requirement to provide a complete shareholder
report upon request of a shareholder. We estimate that the annual costs
associated with printing and mailing these reports would be $500 per
fund.\816\

Accordingly, we estimate that the aggregate annual external costs
associated with printing and mailing shareholder reports upon request
would be $5,380,500.\817\ Together with the external costs for those
funds that would rely on proposed rule 30e-3 but that do not currently
have a Web site, we estimate that the posting and shareholder request
requirements of the proposed rule will result in an annual external
cost burden of $5,455,871.\818\
---------------------------------------------------------------------------

    \816\ As noted above, we estimate the external costs associated
with rules 30e-1 and 30e-2 (the rules relating to shareholder
reports) to be $31,061 and $20,000, respectively. These costs
account for preparation and transmission of complete shareholder
reports twice a year in paper to shareholders. We estimate that one-
third of these external costs are attributed to printing and mailing
shareholder reports. Additionally, we estimate that 5% of
shareholders may request paper copies of shareholder reports
transmitted via Web site pursuant to proposed rule 30e-3. In this
regard, we note that shareholders preferring paper copies of
shareholder reports will also have the ability to return the
postage-paid, pre-addressed reply card that all shareholders will
receive with their Initial Statement to indicate that they want to
opt-out of Web site transmission. See Part II.D.3.b. above
(discussing the Initial Statement). Accordingly, we believe that
only a small percentage of shareholders whose shareholder reports
are transmitted via Web site will request paper copies. In order to
be conservative in our estimates, we have multiplied 5% by $10,000,
which is approximately one-third of the external costs associated
with management companies' shareholder reports ($31,061/3 =
$10,354), which are higher than the external costs associated with
UITs' shareholder reports. Thus, we estimate that the external costs
associated with providing complete shareholder reports upon request
would be $500 (5% x $10,000).
    \817\ This estimate is based on the following calculation: $500
x 10,761 funds = $5,380,500.
    \818\ This estimate is based on the following calculation:
$5,380,500 + $75,371 = $5,455,871.
---------------------------------------------------------------------------

2. Shareholder Consent and Notice
    Proposed rule 30e-3 would permit electronic transmission of a
shareholder report to a particular shareholder only if the shareholder
has either previously consented to this method of transmission or has
been determined to have provided implied consent under certain
conditions specified in the rule.\819\ One of the conditions for
implied consent requires that the fund transmit to the shareholder an
Initial Statement, at least 60 days before it begins to rely on the
rule, notifying the shareholder of the fund's intent to make future
shareholder reports available on the fund's Web site until the
shareholder revokes consent. Additionally, proposed rule 30e-3 would
require funds relying on the rule with respect to a shareholder who has
consented to electronic transmission to send a Notice containing
certain information to the shareholder within 60 days of the close of
the fiscal period to which the report relates.\820\ The proposed rule
would also require funds to file a form of the Notice with the
Commission not later than 10 days after the Notice is sent to
shareholders.\821\
---------------------------------------------------------------------------

    \819\ See proposed rule 30e-3(c).
    \820\ See proposed rule 30e-3(d).
    \821\ See proposed rule 30e-3(d)(7).
---------------------------------------------------------------------------

    As discussed in Part V.D.1. above, we estimate that 90% of all
eligible funds (or 10,761 funds) will choose to rely on proposed rule
30e-3.\822\ For those funds relying on the rule, we estimate that it
will take each fund one and a half hours to prepare the Initial
Statement in the first year of compliance with the rule.\823\ We
further estimate that each fund will incur a half hour burden in
subsequent years to the extent the fund has shareholders that have not
previously consented to Web site transmission of the fund's shareholder
reports.\824\ We also estimate that each fund will incur two hours to
prepare and file the first Notice in the first year \825\ and an hour
for each subsequent notice.\826\ Additionally, with respect to both the
Initial Statement and the Notice, we estimate that 75% of the annual
hour burden would be incurred by the fund and that 25% of the burden
would be incurred by outside counsel retained by the fund.\827\
---------------------------------------------------------------------------

    \822\ See supra note 800 and accompanying text.
    \823\ See Internet Availability of Proxy Materials, Exchange Act
Release No. 55146 (Jan. 22, 2007) [72 FR 4148, 4161 (Jan. 29, 2007)]
(``Proxy Notice Release'') (estimating the annual burden for an
issuer or other soliciting person to prepare a notice of Internet
availability of proxy materials (``proxy notice'') to be
approximately one and half hours). We estimate that the length and
breadth of the Initial Statement would be similar to that of a proxy
notice.
    \824\ Based our initial hour burden estimate for the Initial
Statement, and given that a fund will only have to provide the
Initial Statement in subsequent years to those shareholders who have
not previously consented, we believe the subsequent hour burden will
be minimal. Accordingly, we have estimated a half hour burden per
fund in subsequent years.
    \825\ See supra note 823. We estimate that the length and
breadth of the Notice would be similar to that of a proxy notice.
However, under proposed rule 30e-3, a Notice would also have to be
separately filed with the Commission. Accordingly, we have increased
the initial estimated hour burden for the Notice to two hours versus
the hour and half estimated hour burden for the proxy notice. In
addition, a fund relying on the proposed rule would have to prepare
and send a notice to relevant shareholders, and file the notice with
the Commission, twice a year--once for the annual shareholder report
and once for the semiannual shareholder report. In the first year of
compliance with the rule, we estimate that the fund would need two
hours to prepare and file the first notice and one hour to prepare
and file the second notice, for a total of three hours in the first
year of compliance.
    \826\ Based our initial hour burden estimate for the Notice, and
given that a fund will likely use its original Notice as a template
for subsequent notices but will also have to file each Notice with
the Commission, we believe one hour burden per fund per subsequent
filing is an appropriate estimate. As noted above, a fund would have
to prepare and file a Notice twice a year. As such, we estimate the
hour burden for each fund in subsequent years would be two hours.
    \827\ See Proxy Notice Release, supra note 823 (estimating 75%
of the proxy notice burden would be prepared by the issuer and that
25% of the burden would be prepared by outside counsel retained by
the issuer).
---------------------------------------------------------------------------

    Accordingly, we estimate that the Initial Statement will result in
an average hourly burden per fund of 1.3 hours in the first year \828\
and 0.38 hours in each subsequent year.\829\ Amortized over three
years, the average annual hour burden associated with the Initial
Statement would be 0.69 hours per fund.\830\ In addition, we estimate
that the Notice will result in an average annual hour burden of 2.3
hours per fund in the first year \831\ and 1.5 hours per fund in each
subsequent year.\832\ Amortized over three years, the average annual
hour burden associated with the Notice would be 1.8 hours per
fund.\833\ In sum, we estimate that the shareholder consent and Notice
requirements of proposed rule 30e-3 would impose an average total
annual hour burden of 8,932 hours on applicable funds.\834\
---------------------------------------------------------------------------

    \828\ The estimate is based on the following calculation: 1.5
hours x 75% = 1.3 hours.
    \829\ The estimate is based on the following calculation: 0.5
hours x 75% = 0.38 hours.
    \830\ The estimate is based on the following calculation: (1.3
hours + (2 years x 0.38 hours))/3 years = 0.69 hours.
    \831\ The estimate is based on the following calculation: (2
hours + 1 hour) x 75% = 2.3 hours.
    \832\ The estimate is based on the following calculation: (1
hour + 1 hour) x 75% = 1.5 hours.
    \833\ The estimate is based on the following calculation: (2.3
hours + (2 years x 1.5 hours))/3 years = 1.8 hours.
    \834\ This estimate is based on the following calculations:
(0.69 hours for the Initial Statement x 10,761 funds) + (1.8 hours
for the Notice x 10,761 funds) = 26,795; 26,795 hours/3 years =
8,932.
---------------------------------------------------------------------------

    In addition, we estimate that funds will incur external costs if
they rely on proposed rule 30e-3. The external cost burden is the cost
of goods and services purchased in connection with complying with the
rule, which, with respect to the Initial Statement and Notice, we
estimate would include the costs associated with outside counsel and
printing and mailing costs.
    We estimate outside counsel retained by the fund will incur 25% of
the hourly burden associated with each of the Initial Statement and
Notice at a rate of $380 per hour.\835\ Accordingly, we estimate that
outside counsel costs associated with the Initial Statement will result
in an average cost burden per fund of $144 in the first year,\836\ $49
in subsequent years, \837\ and amortized over three years, $81.\838\
Additionally, we estimate that outside counsel costs associated with
the Notice will result in

an average cost burden per fund of $285 in the first year,\839\ $190 in
subsequent years, \840\ and amortized over three years, $222.\841\ In
sum, we estimate that the outside counsel costs related to the
shareholder consent and Notice requirements of proposed rule 30e-3
would impose an annual average total cost burden of $3,260,583 on
applicable funds.\842\
---------------------------------------------------------------------------

    \835\ This estimate is based on the rate for attorneys in
SIFMA's Management and Professional Earnings in the Securities
Industry 2013, modified by Commission staff to account for an 1800-
hour work year and multiplied by 5.35 to account for bonuses, firm
size, employee benefits, and overhead.
    \836\ The estimate is based on the following calculation: 1.5
hours associated with x 25% = 0.38 hours; 0.38 hours x $380 = $144.
    \837\ The estimate is based on the following calculation: 0.5
hours x 25% = 0.13 hours; 0.13 hours x $380 = $49.
    \838\ The estimate is based on the following calculation: ($144
+ (2 years x $49))/3 = $81.
    \839\ The estimate is based on the following calculation: (2
hours + 1 hour) x 25% = 0.75 hours; 0.75 hours x $380 = $285.
    \840\ The estimate is based on the following calculation: (1
hour + 1 hour) x 25% = 0.5 hours; 0.5 hours x $380 = $190.
    \841\ The estimate is based on the following calculation: ($285
+ (2 years x $190))/3 = $222.
    \842\ This estimate is based on the following calculations: ($81
for the Initial Statement x 10,761 funds) + ($222 for the Notice x
10,761) = $3,260,583.
---------------------------------------------------------------------------

    We also estimate that, in the first year, each fund will incur
approximately $1000 in printing and mailing costs related to each of
the first Initial Statement and Notice.\843\ In subsequent years, we
estimate each fund will incur $333 in printing and mailing costs
related to the Initial Statement\844\ and $1000 with respect to each
Notice.\845\ Amortized over three years, we estimate that the Initial
Statement will result in $555 annual cost burden per fund\846\ and the
Notice will result in a $2000 annual cost burden per fund.\847\ In sum,
we estimate that the printing and mailing costs related to the
shareholder consent and Notice requirements of proposed rule 30e-3
would impose an average annual total cost burden of $27,494,355 on
applicable funds.\848\ Accordingly, together with the costs associated
with outside counsel, we estimate that the shareholder consent and
Notice requirements of the proposed rule would impose an average annual
total cost burden of $30,754,938.\849\
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    \843\ As noted above, we estimate the external costs associated
with rules 30e-1 and 30e-2 (the rules relating to shareholder
reports) to be $31,061 and $20,000, respectively. These costs
account for preparation and transmission of complete shareholder
reports twice a year in paper to shareholders. We estimate that one-
third of these external costs are attributed to printing and mailing
shareholder reports. We estimate that the Initial Statement and
Notice would require significantly less be spent on printing and
mailing costs given the significantly smaller size of the documents.
Accordingly, we estimate that each of the Initial Statement and
Notice would require 10% of the printing and mailing costs
associated with complete shareholder reports. We also estimate that
there would be no other external costs attributable to the Initial
Statement or Notice. In order to be conservative in our estimates,
we have multiplied 10% by $10,000, which is approximately one-third
of the external costs associated with management companies'
shareholder reports ($31,061/3 = $10,354), which are higher than the
external costs associated with UITs' shareholder reports. Thus, we
estimate that the initial printing and mailing costs associated with
each of the Initial Statement and Notice would be $1000 (10% x
$10,000). Additionally, however, with respect to the Notice, we note
that a fund would send two Notices a year--one for each shareholder
report. Accordingly, we estimate that the printing and mailing costs
associated with the Notice would be $2000 ($100 x 2 Notices) in the
first year.
    \844\ Given that funds will only have to send the Initial
Statement to shareholders who have not yet consented (e.g., new
shareholders), we estimate that the external cost burden in
subsequent years would only be one-third the cost of the first
Initial Statement ($1000/3 = $333).
    \845\ We do not believe the external costs associated with
printing and mailing the Notice will be different in subsequent
years because proposed rule 30e-3 specifies the information to be
included in the Notice, which must be sent each time a shareholder
report is transmitted. As noted above, funds would send two Notices
a year--one for each shareholder report. Accordingly, we estimate
that the printing and mailing costs associated with the Notice would
be $2000 ($1000 x 2 Notices) in each subsequent year.
    \846\ This estimate is based on the following calculation:
($1000 + (2 years x $333))/3 = $555.
    \847\ This estimate is based on the following calculation:
($2000 per year x 3 years)/3 = $2000.
    \848\ This estimate is based on the following calculations:
($555 for the Initial Statement x 10,761 funds) + ($2000 for the
Notice x 10,761) = $27,494,355.
    \849\ This estimate is based on the following calculations:
$3,260,583+ $27,494,355 = $30,754,938.
---------------------------------------------------------------------------

    In total, proposed rule 30e-3 would impose an average total annual
hour burden of 17,379 hours on applicable funds\850\ and a total annual
external cost burden of $36,210,809 on applicable funds.\851\
---------------------------------------------------------------------------

    \850\ This estimate is based on the following calculation: 8,447
hours for the posting requirements + 8,932 hours for the written
shareholder consent statement and Notice requirements = 17,379
hours.
    \851\ This estimate is based on the following calculation:
$5,455,871 + $30,754,938 = $36,210,809.
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3. Impact on Information Collections for Rules 30e-1 and 30e-2
    As discussed in Sections V.C.1. and 2. above, rule 30e-1 under the
Investment Company Act requires management companies to transmit semi-
annual reports to their shareholders and rule 30e-2 under the
Investment Company Act requires certain UITs to similarly transmit
semi-annual reports to their unitholders.\852\ Also as discussed above,
we currently estimate, with respect to rule 30e-1, that each fund
incurs an annual hourly burden of 84 hours \853\ and an annual external
cost burden of $31,061 per fund.\854\ Additionally, with respect to
rule 30e-2, we currently estimate that each UIT respondent incurs an
annual hourly burden of 121 hours per fund \855\ and an annual external
cost burden of $20,000 per fund.\856\
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    \852\ See supra notes 784 and 785 and accompanying text.
    \853\ As discussed in Part V.C.1., the current estimated total
annual hourly burden for all funds is 903,000 hours. See supra note
775.
    \854\ As discussed in Part V.C.1., the current total estimated
annual cost burden for all funds is $333,905,750. See supra note
783.
    \855\ As discussed in Part V.C.2., the current estimated total
annual hourly burden for all UIT respondents is 91,960 hours. See
supra note 787.
    \856\ As discussed in Part V.C.2., the current total estimated
annual cost burden for all UIT respondents is $15,200,000. See supra
note 795.
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    As discussed above, we estimate that 90% of all funds will rely on
proposed rule 30e-3. In addition, we estimate that a fund's hourly
burden associated with rule 30e-1 or rule 30e-2 will not change as
result of proposed rule 30e-3. However, we estimate that, for those
funds that rely on proposed rule 30e-3, the fund's external cost burden
would decrease. In this regard, we estimate that for 90% of funds
relying on rule 30e-3, their annual cost burden related to rule 30e-1
would decrease from $31,061 to $20,707.\857\ Additionally, we estimate
that for the 90% of funds relying on rule 30e-3, their annual cost
burden related to rule 30e-2 would decrease from $20,000 to
$13,333.\858\ Accordingly, if proposed rule 30e-3 is adopted, we
estimate that for 90% of management companies the total annual external
cost burden for rule 30e-1 would be $209,285,649 \859\ and the total
annual external cost burden for all management companies under rule
30e-1 would be $244,167,152.\860\ Additionally, if proposed rule 30e-3
is adopted, we estimate that for 90% of UITs the total annual external
cost burden for rule 30e-2 would be $8,719,782 \861\ and the total
annual external cost burden for all UITs under rule 30e-2 would be
$10,179,782.\862\
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    \857\ As discussed above, we estimate that one-third of the
external costs currently attributed to rule 30e-1 relate to printing
and mailing costs, which would not be applicable to management
companies relying on proposed rule 30e-3. Accordingly, our estimate
is based on the following calculation: $31,061/3 = $10,354;
$31,061--$10,354 = $20,707.
    \858\ As discussed above, we estimate that one-third of the
external costs currently attributed to rule 30e-2 relate to printing
and mailing costs, which would not be applicable to UITs relying on
proposed rule 30e-3. Accordingly, our estimate is based on the
following calculation: $20,000/3 = $6,667; $20,000--$6,667 =
$13,333.
    \859\ This estimate is based on the following calculation:
11,230 funds x 90% = 10,107; 10,107 funds x $20,707 = $209,285,649.
See also note 777 (estimating the number of management companies
subject to rule 30e-1 as 11,230).
    \860\ This estimate is based on the following calculation:
11,230 funds--10,107 funds = 1,123 funds; 1,123 funds x $31,061 =
$34,881,503; $209,285,649 + $34,881,503 = $244,167,152.
    \861\ This estimate is based on the following calculation: 727
UITs x 90% = 654; 654 UITs x $13,333 = $8,719,782; see also note 789
(estimating the number of UITs subject to rule 30e-2 as 727).
    \862\ This estimate is based on the following calculation: 727
UITs--654 UITs = 73 UITs; 73 UITs x $20,000 = $1,460,000; $8,719,782
+ $1,460,000 = $10,179,782.

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E. Amendments to Certification Requirements of Form N-CSR

    In connection with the rescission of Form N-Q, we are proposing to
amend Form N-CSR, the reporting form used by management companies to
file certified shareholder reports under the Investment Company Act and
the Exchange Act. Form N-Q currently requires principal executive and
financial officers of the fund to make certifications for the first and
third fiscal quarters relating to (1) the accuracy of information
reported to the Commission, and (2) disclosure controls and procedures
and internal control over financial reporting.\863\ Rescission of Form
N-Q would eliminate these certifications.
---------------------------------------------------------------------------

    \863\ See supra note 178 and accompanying text.
---------------------------------------------------------------------------

    Form N-CSR requires similar certification with respect to the
fund's second and fourth fiscal quarters. As a result of the proposed
rescission of Form N-Q, we are proposing to amend the form of
certification in Form N-CSR to require each certifying officer to state
that he or she has disclosed in the report any change in the
registrant's internal control over financial reporting that occurred
during the most recent fiscal half-year, rather than the registrant's
most recent fiscal quarter as currently required by the form.\864\
Lengthening the look-back of this certification to six months, so that
the certifications on Form N-CSR for the semi-annual and annual reports
would cover the first and second fiscal quarters and third and fourth
fiscal quarters, respectively, would fill the gap in certification
coverage that would otherwise occur once Form N-Q is rescinded.
---------------------------------------------------------------------------

    \864\ Proposed Item 11(b) of Form N-CSR; proposed paragraph 5(b)
of certification exhibit of Item 11(a)(2) of Form N-CSR.
---------------------------------------------------------------------------

    Compliance with the amended certification requirements would be
mandatory and responses would not be kept confidential.
    We currently estimate that the annual burden associated with Form
N-CSR is 14.42 hours per fund \865\ and that the current total annual
time burden for Form N-CSR is 177,799 hours.\866\ We note that the
amount and content of the information contained in the reports filed on
Form N-CSR would not change as the result of the proposed amendments
and the funds likely already have policies and procedures in place to
assist officers in their certifications of this information.
Accordingly, we estimate that the proposed amendments to Form N-CSR
would not change the annual hour burden associated with Form N-CSR and,
thus, we continue to estimate the annual hour burden associated with
Form N-CSR to be 14.42 hours per fund. With respect to the total annual
hour burden, however, we estimate 161,937 hours.\867\ This decrease in
the current total annual hour burden is a result of the decrease in the
number of funds estimated to file Form N-CSR.
---------------------------------------------------------------------------

    \865\ This estimate accounts for two filings per year. In
addition, we note that our current estimate does not separately
account for the certifications on Form N-CSR.
    \866\ This estimate is based on the following calculation: 14.42
hours x 12,330 funds (the estimated number of funds the last time
the rule's information collections were submitted for PRA renewal in
2013)).
    \867\ This estimate is based on the following calculation:
11,230 funds x 14.42 hours = 161,937. See supra note 777
(calculating the estimate for 11,230 funds).
---------------------------------------------------------------------------

    In addition, we currently estimate that the annual cost of outside
services associated with Form N-CSR is approximately $129 per
fund.\868\ External costs include the cost of goods and services
purchased to prepare and update filings on Form N-CSR. We do not
believe that these costs will change as a result of the proposed
amendments to Form N-CSR and, thus, continue to estimate an external
cost burden of $129 per fund to file Form N-CSR. We further estimate
that the total annual external cost burden for Form N-CSR would be
$2,897,340.\869\
---------------------------------------------------------------------------

    \868\ The external costs associated with Form N-CSR do not
include the external costs associated with the shareholder report.
The external costs associated with the shareholder report are
accounted for under the collections of information related to rules
30e-1 and 30e-2 under the Investment Company Act.
    \869\ This estimate is based on the following calculation:
11,230 funds x $129 = $1,448,670; $1,448,670 x 2 times per year =
$2,897,340. The current total annual cost burden of Form N-CSR is
$3,189,771, which reflects the higher estimated number of filers for
Form N-CSR at the time of the last renewal for the form. See supra
n.866.
---------------------------------------------------------------------------

F. Amendments to Registration Statement Forms

    We are also proposing to amend Forms N-1A, N-2, N-3, N-4, and N-6
to exempt funds from those forms' respective books and records
disclosures if the information is provided in a fund's most recent
report on Form N-CEN.\870\ The books and records disclosures required
by these registration statement forms are not provided in a structured
format. We believe that having this information in a structured format
would increase our efficiency in preparing for exams as well as our
ability to identify current industry trends and practices and,
therefore, are proposing it be reported on proposed Form N-CEN.
---------------------------------------------------------------------------

    \870\ See supra notes 397-399 and accompanying text. As
discussed in Part II.F. above, we are also proposing technical and
conforming amendments to certain registration forms. We do not
believe these changes will result in any change to the burden and
cost estimates currently applicable to those forms.
---------------------------------------------------------------------------

    Currently, we estimate the following total hour burden for each of
the relevant forms: (i) Form N-1A--1,579,974 hours; (ii) Form N-2--
86,533 hours; (iii) Form N-3--2,173 hours; (iv) Form N-4--256,835
hours; and (v) Form N-6--34,349 hours. We estimate the total hour
burden, as discussed above, for each respective form will not change as
result of the proposed amendments. Additionally, we do not believe the
total cost burden for any of the relevant forms would change as a
result of the proposed amendments and, therefore, we continue to
estimate the following total cost burden for each of the respective
forms: (i) Form N-1A--$124,820,197; (ii) Form N-2--$5,488,048; (iii)
Form N-3--$139,300; (iv) Form N-4--$26,609,241; and (v) Form N-6--
$3,820,447.

G. Request for Comments

    We request comment on whether our estimates for burden hours and
any external costs as described above are reasonable. Pursuant to 44
U.S.C. 3506(c)(2)(B), the Commission solicits comments in order to: (i)
Evaluate whether the proposed collections of information are necessary
for the proper performance of the functions of the Commission,
including whether the information will have practical utility; (ii)
evaluate the accuracy of the Commission's estimate of the burden of the
proposed collections of information; (iii) determine whether there are
ways to enhance the quality, utility, and clarity of the information to
be collected; and (iv) determine whether there are ways to minimize the
burden of the collections of information on those who are to respond,
including through the use of automated collection techniques or other
forms of information technology.
    The agency has submitted the proposed collection of information to
OMB for approval. Persons wishing to submit comments on the collection
of information requirements of the proposed amendments should direct
them to the Office of Management and Budget, Attention Desk Officer for
the Securities and Exchange Commission, Office of Information and
Regulatory Affairs, Washington, DC 20503, and should send a copy to
Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F
Street NE., Washington, DC 20549 1090, with reference to File No. S7-
08-15. OMB is required to make a decision concerning the collections of
information between 30 and 60 days after publication of this

release; therefore, a comment to OMB is best assured of having its full
effect if OMB receives it within 30 days after publication of this
release. Requests for materials submitted to OMB by the Commission with
regard to these collections of information should be in writing, refer
to File No. S7-08-15, and be submitted to the Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC
20549-2736.

VI. Initial Regulatory Flexibility Analysis

    This Initial Regulatory Flexibility Analysis (``IRFA'') has been
prepared in accordance with section 3 of the Regulatory Flexibility Act
(``RFA'').\871\ It relates to proposed new Form N-PORT and amendments
to the Form N-CSR certification requirement, amendments to Regulation
S-X, the proposed rule governing electronic transmission of shareholder
reports, the rescission of Forms N-Q and N-SAR, and proposed amendments
to Forms N-1A, N-2, N-3, N-4, and N-6.
---------------------------------------------------------------------------

    \871\ 5 U.S.C. 603.
---------------------------------------------------------------------------

A. Reasons for and Objectives of the Proposed Actions

    The Commission collects certain information about the funds that it
regulates. The Commission is proposing new rules, rule amendments, and
new forms and form amendments that would improve the quality of
information that funds report to the Commission, benefitting the
Commission's risk monitoring and oversight, examination, and
enforcement programs.
    We believe that our proposals would improve the information that
funds report to their shareholders and the Commission. In addition, the
proposed new forms would require reports be filed in a structured data
format (XML) to allow for easier collection and analysis of data by
Commission staff and the public. This is the format used by Form N-MFP,
Form 13F, and Form D, which greatly improves the ability of Commission
staff and other potential users to aggregate and analyze the data
reported.
    The Commission's objective is to gain more timely and useful
information about funds' operations and portfolio holdings. The
Commission also believes that its risk monitoring and oversight,
examination, and enforcement programs would be improved by requiring
enhanced information from funds.

B. Legal Basis

    The Commission is proposing the rules and forms contained in this
document under the authority set forth in the Securities Act,
particularly, section 19 thereof [15 U.S.C. 77a et seq.], the Trust
Indenture Act, particularly, section 319 thereof [15 U.S.C. 77aaa et
seq.], the Exchange Act, particularly, sections 10, 13, 15, 23, and 35A
thereof [15 U.S.C. 78a et seq.], the Investment Company Act,
particularly, sections 8, 30, and 38 thereof [15 U.S.C. 80a et seq.],
and 44 U.S.C. 3506, 3507.

C. Small Entities Subject to the Rule

    An investment company is a small entity if, together with other
investment companies in the same group of related investment companies,
it has net assets of $50 million or less as of the end of its most
recent fiscal year.\872\ Commission staff estimates that, as of
December 2014, approximately 146 registered investment companies,
including 133 open and closed-end funds (including one SBIC) and 13
UITs. The Commission staff further estimates that, as of December 2014,
approximately 28 BDCs are small entities.
---------------------------------------------------------------------------

    \872\ 17 CFR 270.0-10(a).
---------------------------------------------------------------------------

D. Projected Reporting, Recordkeeping, and Other Compliance
Requirements

    The proposed amendments would create, amend, or eliminate current
reporting requirements for small entities.
1. Form N-PORT
    Funds currently report portfolio holdings information quarterly on
Form N-Q (first and third fiscal quarters) and Form N-CSR (second and
fourth fiscal quarters). The Commission is proposing to adopt new Form
N-PORT on which funds, other than MMFs, UITs, and SBICs, would be
required to report portfolio holdings information and information
related to liquidity, derivatives, securities lending, purchases and
redemptions, and counterparty exposure each month. Funds would be
required to file Form N-PORT within 30 days after the end of the
monthly period using a structured format. Only information reported for
the third month of each quarter would be available to the public and
such information would not be made public until 60 days after the end
of the third month of the fund's fiscal quarter. For smaller funds and
fund groups (i.e., funds that together with other investment companies
in the same ``group of related investment companies'' have net assets
of less than $1 billion as of the end of the most recent fiscal year),
which would include small entities, we expect to provide for an extra
12 months (or 30 months after the effective date) to comply with the
new Form N-PORT reporting requirements.
    Based on our experience with other interactive data filings, we
estimate that funds would prepare and file their reports on proposed
Form N-PORT by either (1) licensing a software solution and preparing
and filing the reports in house, or (2) retaining a service provider to
provide data aggregation and validation services as part of the
preparation and filing of reports on proposed Form N-PORT on behalf of
the fund. We estimate that approximately 132 open and closed-end funds
(other than money market funds and SBICs), are small entities that
would be required to file, on a monthly basis, a complete report on
proposed Form N-PORT reporting certain information regarding the fund
and its portfolio holdings. As discussed above, we estimate, for funds
that choose to license a software solution to file reports on Form N-
PORT, that completing, reviewing, and filing Form N-PORT would cost
$55,970 for each fund, including small entities, in its first year of
reporting and $46,745 per year for each subsequent year.\873\ We
further estimate, for funds that choose to retain a third-party service
provider to provide data aggregation and validation services as part of
the preparation and filing of reports on Form N-PORT, that completing,
reviewing, and filing Form N-PORT would cost $54,821 for each fund,
including small entities, in its first year of reporting, and $38,746
per year for each subsequent year.\874\
---------------------------------------------------------------------------

    \873\ See supra notes 658-659 and accompanying text.
    \874\ See supra notes 660-661 and accompanying text.
---------------------------------------------------------------------------

2. Rescission of Form N-Q
    Our proposal would rescind Form N-Q in order to eliminate
unnecessarily duplicative reporting requirements. The proposed
rescission of Form N-Q would affect all management investment companies
required to file reports on the form. We expect that approximately 132
open and closed-end funds are small entities that would be affected by
the recession of Form N-Q.
    As discussed above, we estimate that the rescission of Form N-Q
would save $6,762 per year for each fund, including small
entities.\875\
---------------------------------------------------------------------------

    \875\ The estimated cost is based upon the following
calculations: ($6,762 = 21 hours/fund x $322/hour compensation for
professionals commonly used in preparation of Form N-Q filings.) See
supra Part V.A.2.

---------------------------------------------------------------------------

3. Form N-CEN
    Funds currently report census type information relating to the
fund's organization, service providers, fees and expenses, portfolio
strategies and investments, portfolio transactions, and share
transactions on Form N-SAR. Funds file this form semi-annually with the
Commission, except for UITs, which must file such reports
annually.\876\ The utility of the information reported on Form N-SAR
has been limited for two reasons. First, the data items funds are
required to report on Form N-SAR have not been updated to reflect
current Commission staff needs. Second, the technology by which funds
file reports on Form N-SAR has not been updated and limits the
Commission staff's ability to extract and analyze reported data.
---------------------------------------------------------------------------

    \876\ See rule 30b1-1 and rule 30a-1.
---------------------------------------------------------------------------

    Because of these limitations, the Commission is proposing to
replace Form N-SAR with new Form N-CEN. This new form would streamline
and updated the required data items to reflect current Commission staff
needs. The Commission is also proposing that funds file reports on Form
N-CEN in a structured (XML) format, which would allow for easier data
analysis and use in the Commission's rulemaking, inspection, and risk
monitoring functions and reduce burdens on filers. Finally, the
Commission is proposing that funds file reports on Form N-CEN annually,
opposed to semi-annually, which is currently required for Form N-SAR
(except UITs, which currently must file reports annually).
    We estimate that approximately 146 registered investment companies,
including 133 open and closed-end funds (including one SBIC) and 13
UITs, are small entities that would be required to file a complete
report on Form N-CEN. Although UITs are required to complete fewer
items on Form N-CEN than other registered investment companies, the
burden on UITs would increase because UITs would be required to respond
to more items in Form N-CEN than they are currently required to respond
to under Form N-SAR.
    As discussed above, the SEC estimates that completing, reviewing,
and filing Form N-CEN would cost $10,622 for each fund,\877\ including
small entities, in its first year of reporting, and $4,252 per year for
each subsequent year.\878\ We further estimate that completing,
reviewing, and filing Form N-CEN would cost $9,272 for each UIT,\879\
including small entities, in its first year of reporting, and $2,902
per year for each subsequent year.\880\
---------------------------------------------------------------------------

    \877\ See supra notes 723 and 725 and accompanying text. The
estimated costs is based upon the following calculations: ($10,622 =
(13.35 hours/fund ongoing costs + 20 hours/fund initial costs) x
$318.50/hour compensation for professionals commonly used in
preparation of Form N-CEN filings).
    \878\ See supra note 724 and accompanying text. The estimated
costs is based upon the following calculations: ($4,252 = 13.35
hours/fund ongoing costs x $318.50/hour compensation for
professionals commonly used in preparation of Form N-CEN filings).
    \879\ See supra notes 723 and 725 and accompanying text. The
estimated costs is based upon the following calculations: ($9,272 =
(9.11 hours/UIT ongoing costs + 20 hours/UIT initial costs) x
$318.50/hour compensation for professionals commonly used in
preparation of Form N-CEN filings).
    \880\ See supra note 724 and accompanying text. The estimated
costs is based upon the following calculations: ($2,902 = 9.11
hours/UIT ongoing costs x $318.50/hour compensation for
professionals commonly used in preparation of Form N-CEN filings).
---------------------------------------------------------------------------

4. Rescission of Form N-SAR
    Our proposal would rescind Form N-SAR in order to eliminate
unnecessarily duplicative reporting requirements. We estimate that that
approximately 146 registered investment companies that are small
entities, including 133 open and closed-end funds (including one SBIC)
and 13 UITs would be affected by the rescission of Form N-SAR.
    We estimate that rescinding Form N-SAR would save $9,778 per year
for each fund, including small entities.\881\ We further estimate that
rescinding Form N-SAR would save $2,265 per year for each UIT,
including small entities.\882\
---------------------------------------------------------------------------

    \881\ The estimated savings is based upon the following
calculations: ($9,778 = 15.35 hours/fund x $318.50/hour compensation
for professionals commonly used in preparation of Form N-SAR filings
x 2 filings/year.) See supra notes 724-725 and accompanying text
(using a weighted average annual hour burden per response for Form
N-SAR of 14.25 hours).
    \882\ The estimated savings is based upon the following
calculations: ($2,265 = 7.11 hours/UIT x $318.50/hour compensation
for professionals commonly used in preparation of Form N-SAR
filings.) See supra notes 724-725 and accompanying text (using a
weighted average annual hour burden per response for Form N-SAR of
14.25 hours).
---------------------------------------------------------------------------

5. Regulation S-X Amendments
    The Commission is also proposing to amend Regulation S-X to require
new, standardized disclosures regarding fund holdings in open futures
contracts, open forward foreign currency contracts, and open swap
contracts, and additional disclosures regarding fund holdings of
written and purchased options, update the disclosures for other
investments with conforming amendments, and amend the rules regarding
the form and content of fund financial statements. We believe that the
amendments we are proposing today are generally consistent with how
many funds are currently reporting investments (including derivatives),
and other information according to current industry practices. The
Commission believes investors would benefit from our proposed
amendments because increased disclosure and standardization of fund
holdings would improve comparability among funds including transparency
for investors regarding a fund's use of derivatives and the liquidity
of certain investments. The Commission also believes that greater
clarity would benefit the industry, while any additional burdens would
be reduced since similar disclosures would be proposed to be required
on Form N-PORT.
    We expect that approximately 146 registered investment companies,
including 133 open and closed-end funds (including one SBIC) and 13
UITs and, approximately 28 BDCs, are small entities that would be
affected by the amendments to Regulation S-X. As discussed above, we
estimate that amending Regulation S-X would cost $2,417 for each fund,
including small entities, in its first year of reporting, and $806 per
year for each subsequent year.\883\ As discussed above, we further
estimate that amending Regulation S-X would cost $2,417 for each UIT,
including small entities, in its first year of reporting, and $806 per
year for each subsequent year.\884\
---------------------------------------------------------------------------

    \883\ See supra notes 694-699 and accompanying text.
    \884\ See supra notes 698-701 and accompanying text.
---------------------------------------------------------------------------

6. Web Site Transmission of Shareholder Reports
    The Commission is proposing new rule 30e-3 under the Investment
Company Act, which would, if adopted, permit, but not require, a fund
to satisfy requirements under the Act and rules thereunder to transmit
reports to shareholders if the fund makes the reports and certain other
materials accessible on its Web site and periodically notifies
investors of the materials' availability.\885\ Proposed rule 30e-3
would provide that a fund's annual or semiannual report to shareholders
would be considered ``transmitted'' to a shareholder of record if
certain conditions set forth in the rule are satisfied.\886\ Funds that
do not maintain Web sites or that otherwise wish to transmit
shareholder reports in paper or pursuant the Commission's

existing electronic delivery guidance would continue to be able to
satisfy their transmission requirements by those transmission methods.
---------------------------------------------------------------------------

    \885\ See supra Part II.D.
    \886\ Proposed rule 30e-3(a).
---------------------------------------------------------------------------

    We expect that approximately 146 registered investment companies,
including 133 open and closed-end funds (including one SBIC) and 13
UITs, are small entities that would rely on the Web site reporting
rules. As discussed above, the SEC estimates that our proposed Web site
reporting would save $4,792 for each fund, including small entities, in
its first year of reporting, and $6,122 per year for each subsequent
year.\887\
---------------------------------------------------------------------------

    \887\ See supra notes 715, 717, and 718 and accompanying text.
---------------------------------------------------------------------------

7. Amendments to Form N-CSR
    Form N-Q and Form N-CSR currently require a quarterly SOX
certification relating to the accuracy of information reported to the
Commission and disclosure controls and procedures and internal control
over financial reporting. To facilitate the elimination of Form N-Q, we
are proposing to expand the SOX certification for Form N-CSR to six
months to maintain coverage for the entire fiscal year. We expect that
approximately 146 registered investment companies, including 133 open
and closed-end funds (including one SBIC) and 13 UITs, are small
entities that would be affected by the amendments to Form N-CSR. As
discussed above, the Commission does not believe that the costs
associated with reporting on Form N-CSR for will change for funds,
including small entities, as a result of the proposed amendments to
Form N-CSR.\888\
---------------------------------------------------------------------------

    \888\ See supra Part V.E.
---------------------------------------------------------------------------

8. Amendments to Registration Statement Forms
    We are also proposing to amend Forms N-1A, N-2, N-3, N-4, and N-6
to exempt funds from those forms' respective books and records
disclosures if the information is provided in a fund's most recent
report on Form N-CEN.\889\ The books and records disclosures required
by these registration statement forms are not provided in a structured
format. We believe that having this information in a structured format
would increase our efficiency in preparing for exams as well as our
ability to identify current industry trends and practices and,
therefore, are proposing it be reported on proposed Form N-CEN. We are
also proposing amendments that would restrict funds that would rely on
proposed rule 30e-3 from providing a Summary Schedule in their
shareholder reports in lieu of a complete schedule, and certain
technical and conforming amendments to Forms N-1A, N-2 and N-3 to refer
to the availability of portfolio holdings schedules attached to reports
on Form N-PORT and posted on fund Web sites rather than on reports on
Form N-Q.
---------------------------------------------------------------------------

    \889\ See supra notes 397-399 and accompanying text.
---------------------------------------------------------------------------

    We expect that approximately 146 registered investment companies,
including 133 open and closed-end funds (including one SBIC) and 13
UITs, and approximately 28 BDCs, are small entities that would be
required to file registration statements. As discussed above, the SEC
estimates that our proposed amendments would not change for funds,
including small entities, as a result of our proposed amendments to
Forms N-1A, N-2, N-3, N-4, and N-6.\890\
---------------------------------------------------------------------------

    \890\ See supra Part V.F.
---------------------------------------------------------------------------

E. Duplicative, Overlapping, or Conflicting Federal Rules

    Funds currently report portfolio holdings information for the first
and third fiscal quarters on Form N-Q and for the second and fourth
fiscal quarters on Form N-CSR. As a result of our proposal to create
new Form N-PORT, on which funds will report portfolio holdings
information monthly, the Commission is proposing to eliminate Form N-Q,
which will reduce duplication of portfolio holdings information for the
first and third fiscal quarters. We acknowledge that Form N-CSR, Form
N-PORT, Regulation S-X, and Web reporting would require reporting of
some duplicative information, including information currently reported
on the fund's registration statements and annual reports. However, we
believe that both the nature and structure of the reporting are
sufficiently different to justify overlapping information requirements
on the fund's Web site or on respective Commission forms.\891\
---------------------------------------------------------------------------

    \891\ For example, the purpose of Form N-PORT is to provide
structured portfolio holdings data for Commission staff and other to
analyze, while the purpose of web reporting is to provide
shareholders with investor-friendly portfolio disclosures on a
quarterly basis.
---------------------------------------------------------------------------

    Funds currently report census information on Form N-SAR. As part of
our proposed amendments, the Commission is proposing to replace Form N-
SAR with new Form N-CEN. In addition, we are proposing that reports on
Form N-CEN be filed annually, as opposed to semi-annually, which is
generally required for Form N-SAR. Again, we acknowledge that Form N-
CEN would require reporting of some duplicative information, including
information currently reported on the fund's registration statements
and annual reports. Like Form N-PORT and Form N-CSR, we believe that
both the nature and structure of the reporting are sufficiently
different to justify overlapping information requirements.
    Finally, in order to reduce duplicative information in Form N-CEN
and fund registration statements, we are proposing to amend Forms N-1A,
N-2, N-3, N-4, and N-6 to exempt funds from those forms' respective
books and records disclosures if the information is provided in a
fund's most recent report on Form N-CEN.

F. Significant Alternatives

    The RFA directs the Commission to consider significant alternatives
that would accomplish our stated objective, while minimizing any
significant economic impact on small entities. The Commission
considered the following alternatives for small entities in relation
our proposed amendments: (i) Establishing different reporting
requirements or frequency to account for resources available to small
entities; (ii) using performance rather than design standards; and
(iii) exempting small entities from all or part of the proposal.
    Small entities currently follow the same requirements that large
entities do when filing reports on Form N-SAR, Form N-CSR, and Form N-
Q. The Commission believes that establishing different reporting
requirements or frequency for small entities would not be consistent
with the Commission's goal of industry oversight and investor
protection. However, as discussed above, we are proposing a delayed
compliance period for small entities that would file reports on Form N-
PORT.

G. General Request for Comment

    The Commission requests comments regarding this IRFA. We request
comments on the number of small entities that may be affected by our
proposed rules and guidelines, and whether the proposed rules and
guidelines would have any effects not considered in this analysis. We
request that commenters describe the nature of any effects on small
entities subject to the rules, and provide empirical data to support
the nature and extent of such effects. We also request comment on the
proposed compliance burdens and the effect these burdens would have on
smaller entities.

VII. Consideration of Impact on The Economy

    For purposes of the Small Business Regulatory Enforcement Fairness
Act of 1996 (``SBREFA''),\892\ the Commission must advise OMB whether a
proposed regulation constitutes a ``major'' rule. Under SBREFA, a rule
is considered ``major'' where, if adopted, it results in or is likely
to result in:
---------------------------------------------------------------------------

    \892\ Public Law 104-121, Title II, 110 Stat. 857 (1996)
(codified in various sections of 5 U.S.C., 15 U.S.C., and as a note
to 5 U.S.C. 601).
---------------------------------------------------------------------------

     An annual effect on the economy of $100 million or more;
     A major increase in costs or prices for consumers or
individual industries; or
     Significant adverse effects on competition, investment, or
innovation.
    We request comment on whether our proposal would be a ``major
rule'' for purposes of SBREFA. We solicit comment and empirical data
on:
     The potential effect on the U.S. economy on an annual
basis;
     Any potential increase in costs or prices for consumers or
individual industries; and
     Any potential effect on competition, investment, or
innovation.
    Commenters are requested to provide empirical data and other
factual support for their views to the extent possible.

VIII. Statutory Authority and Text of Proposed Amendments

    We are proposing the rules and forms contained in this document
under the authority set forth in the Securities Act, particularly,
section 19 thereof [15 U.S.C. 77a et seq.], the Trust Indenture Act,
particularly, section 319 thereof [15 U.S.C. 77aaa et seq.], the
Exchange Act, particularly, sections 10, 13, 15, 23, and 35A thereof
[15 U.S.C. 78a et seq.], the Investment Company Act, particularly,
sections 8, 30, and 38 thereof [15 U.S.C. 80a et seq.], and 44 U.S.C.
3506, 3507.

List of Subjects

17 CFR Part 200

    Administrative practice and procedure, Organization and functions
(Government agencies).

17 CFR Part 210

    Accounting, Investment companies, Reporting and recordkeeping
requirements, Securities.

17 CFR Parts 230 and 239

    Investment companies, Reporting and recordkeeping requirements,
Securities.

17 CFR Part 232

    Administrative practice and procedure, Reporting and recordkeeping
requirements, Securities.

17 CFR Parts 240 and 249

    Reporting and recordkeeping requirements, Securities.

17 CFR Parts 270 and 274

    Investment companies, Reporting and recordkeeping requirements,
Securities.

    For reasons set forth in the preamble, Title 17, Chapter II of the
Code of Federal Regulations is proposed to be amended as follows:

PART 200--ORGANIZATION; CONDUCT AND ETHICS; AND INFORMATION AND
REQUESTS

Subpart N--Commission Information Collection Requirements Under the
Paperwork Reduction Act: OMB Control Numbers

0
1. The authority citation for Part 200 Subpart N continues to read as
follows:

    Authority: 44 U.S.C. 3506; 44 U.S.C. 3507.

0
2. Section 200.800 is amended in paragraph (b) by removing the entry
for ``Form N-SAR'' and adding in its place an entry ``Form N-CEN'' and
adding an entry in numerical order by part and section number for
``Form N-PORT'', to read as follows:

Sec.  200.800  OMB control numbers assigned pursuant to the Paperwork
Reduction Act.

* * * * *
    (b) * * *

----------------------------------------------------------------------------------------------------------------
                                               17 CFR part or
                                                section where
      Information collection requirement       identified and               Current OMB control No.
                                                  described
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
Form N-CEN...................................         274.101  [OMB control number TBD].

                                                  * * * * * * *
Form N-PORT..................................         274.150  [OMB control number TBD].

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

PART 210--FORM AND CONTENT OF AND REQUIREMENTS FOR FINANCIAL
STATEMENTS, SECURITIES ACT OF 1933, SECURITIES EXCHANGE ACT OF
1934, INVESTMENT COMPANY ACT OF 1940, INVESTMENT ADVISERS ACT OF
1940, AND ENERGY POLICY AND CONSERVATION ACT OF 1975

0
3. The authority citation for part 210 continues to read as follows:

    Authority: 15 U.S.C. 77f, 77g, 77h, 77j, 77s, 77z-2, 77z-3,
77aa(25), 77aa(26), 77nn(25), 77nn(26), 78c, 78j-1, 78l, 78m, 78n,
78o(d), 78q, 78u-5, 78w, 78ll, 78mm, 80a-8, 80a-20, 80a-29, 80a-30,
80a-31, 80a-37(a), 80b-3, 80b-11, 7202 and 7262, unless otherwise
noted.

0
4. Revise Sec.  210.6-01 and the undesignated heading preceding it to
read as follows:

Registered Investment Companies and Business Development Companies

Sec.  210.6-01  Application of Sec. Sec.  210.6-01 to 210.6-10.

    Sections 210.6-01 to 210.6-10 shall be applicable to financial
statements filed for registered investment companies and business
development companies.
0
5. Revise Sec.  210.6-03 to read as follows:

Sec.  210.6-03  Special rules of general application to registered
investment companies and business development companies.

    The financial statements filed for persons to which Sec. Sec.
210.6-01 to 210.6-10 are applicable shall be prepared in accordance
with the following special

rules in addition to the general rules in Sec. Sec.  210.1-01 to 210.4-
10 (Articles 1, 2, 3, and 4). Where the requirements of a special rule
differ from those prescribed in a general rule, the requirements of the
special rule shall be met.
    (a) Content of financial statements. The financial statements shall
be prepared in accordance with the requirements of this part
(Regulation S-X) notwithstanding any provision of the articles of
incorporation, trust indenture or other governing legal instruments
specifying certain accounting procedures inconsistent with those
required in Sec. Sec.  210.6-01 to 210.6-10.
    (b) Audited financial statements. Where, under Article 3 of this
part, financial statements are required to be audited, the independent
accountant shall have been selected and ratified in accordance with
section 32 of the Investment Company Act of 1940 (15 U.S.C. 80a-31).
    (c) Consolidated and combined statements. (1) Consolidated and
combined statements filed for registered investment companies and
business development companies shall be prepared in accordance with
Sec. Sec.  210.3A-01 to 210.3A-04 (Article 3A) except that:
    (i) Statements of the registrant may be consolidated only with the
statements of subsidiaries which are investment companies;
    (ii) A consolidated statement of the registrant and any of its
investment company subsidiaries shall not be filed unless accompanied
by a consolidating statement which sets forth the individual statements
of each significant subsidiary included in the consolidated statement:
Provided, however, That a consolidating statement need not be filed if
all included subsidiaries are totally held; and
    (iii) Consolidated or combined statements filed for subsidiaries
not consolidated with the registrant shall not include any investment
companies unless accompanied by consolidating or combining statements
which set forth the individual statements of each included investment
company which is a significant subsidiary.
    (2) If consolidating or combining statements are filed, the amounts
included under each caption in which financial data pertaining to
affiliates is required to be furnished shall be subdivided to show
separately the amounts:
    (i) Eliminated in consolidation; and
    (ii) Not eliminated in consolidation.
    (d) Valuation of investments. The balance sheets of registered
investment companies and business development companies, other than
issuers of face-amount certificates, shall reflect all investments at
value, with the aggregate cost of each category of investment reported
under Sec. Sec.  210.6-04.1, 6-04.2, 6-04.3 and 6-04.9 or the aggregate
cost of each category of investment reported under Sec.  210.6-05.1
shown parenthetically. State in a note the methods used in determining
value of investments. As required by section 28(b) of the Investment
Company Act of 1940 (15 U.S.C. 80a-28(b)), qualified assets of face-
amount certificate companies shall be valued in accordance with certain
provisions of the Code of the District of Columbia. For guidance as to
valuation of securities, see Sec. Sec.  404.03 to 404.05 of the
Codification of Financial Reporting Policies.
    (e) Qualified assets. State in a note the nature of any investments
and other assets maintained or required to be maintained, by applicable
legal instruments, in respect of outstanding face-amount certificates.
If the nature of the qualifying assets and amount thereof are not
subject to the provisions of section 28 of the Investment Company Act
of 1940 (15 U.S.C. 80a-28), a statement to that effect shall be made.
    (f) Restricted securities. State in a note unless disclosed
elsewhere the following information as to investment securities which
cannot be offered for public sale without first being registered under
the Securities Act of 1933 (restricted securities):
    (1) The policy of the person with regard to acquisition of
restricted securities.
    (2) The policy of the person with regard to valuation of restricted
securities. Specific comments shall be given as to the valuation of an
investment in one or more issues of securities of a company or group of
affiliated companies if any part of such investment is restricted and
the aggregate value of the investment in all issues of such company or
affiliated group exceeds five percent of the value of total assets. (As
used in this paragraph, the term affiliated shall have the meaning
given in Sec.  210.6-02(a).)
    (3) A description of the person's rights with regard to demanding
registration of any restricted securities held at the date of the
latest balance sheet.
    (g) Income recognition. Dividends shall be included in income on
the ex-dividend date; interest shall be accrued on a daily basis.
Dividends declared on short positions existing on the record date shall
be recorded on the ex-dividend date and included as an expense of the
period.
    (h) Federal income taxes. The company's status as a regulated
investment company as defined in subtitle A, chapter 1, subchapter M of
the Internal Revenue Code, as amended, shall be stated in a note
referred to in the appropriate statements. Such note shall also
indicate briefly the principal assumptions on which the company relied
in making or not making provisions for income taxes. However, a company
which retains realized capital gains and designates such gains as a
distribution to shareholders in accordance with section 852(b)(3)(D) of
the Internal Revenue Code shall, on the last day of its taxable year
(and not earlier), make provision for taxes on such undistributed
capital gains realized during such year.
    (i) Issuance and repurchase by a registered investment company or
business development company of its own securities. Disclose for each
class of the company's securities:
    (1) The number of shares, units, or principal amount of bonds sold
during the period of report, the amount received therefor, and, in the
case of shares sold by closed-end management investment companies, the
difference, if any, between the amount received and the net asset value
or preference in involuntary liquidation (whichever is appropriate) of
securities of the same class prior to such sale; and
    (2) The number of shares, units, or principal amount of bonds
repurchased during the period of report and the cost thereof. Closed-
end management investment companies shall furnish the following
additional information as to securities repurchased during the period
of report:
    (i) As to bonds and preferred shares, the aggregate difference
between cost and the face amount or preference in involuntary
liquidation and, if applicable net assets taken at value as of the date
of repurchase were less than such face amount or preference, the
aggregate difference between cost and such net asset value;
    (ii) As to common shares, the weighted average discount per share,
expressed as a percentage, between cost of repurchase and the net asset
value applicable to such shares at the date of repurchases.

Note to paragraphs (h)(2)(i) and (ii): The information required by
paragraphs (h)(2)(i) and (ii) of this section may be based on
reasonable estimates if it is impracticable to determine the exact
amounts involved.
    (j) Series companies. (1) The information required by this part
shall, in the case of a person which in essence

is comprised of more than one separate investment company, be given as
if each class or series of such investment company were a separate
investment company; this shall not prevent the inclusion, at the option
of such person, of information applicable to other classes or series of
such person on a comparative basis, except as to footnotes which need
not be comparative.
    (2) If the particular class or series for which information is
provided may be affected by other classes or series of such investment
company, such as by the offset of realized gains in one series with
realized losses in another, or through contingent liabilities, such
situation shall be disclosed.
    (k) Certificate reserves. (1) For companies issuing face-amount
certificates subsequent to December 31, 1940 under the provisions of
section 28 of the Investment Company Act of 1940 (15 U.S.C. 80a-28),
balance sheets shall reflect reserves for outstanding certificates
computed in accordance with the provisions of section 28(a) of the Act.
    (2) For other companies, balance sheets shall reflect reserves for
outstanding certificates determined as follows:
    (i) For certificates of the installment type, such amount which,
together with the lesser of future payments by certificate holders as
and when accumulated at a rate not to exceed 3\1/2\ per centum per
annum (or such other rate as may be appropriate under the circumstances
of a particular case) compounded annually, shall provide the minimum
maturity or face amount of the certificate when due.
    (ii) For certificates of the fully-paid type, such amount which, as
and when accumulated at a rate not to exceed 3\1/2\ per centum per
annum (or such other rate as may be appropriate under the circumstances
of a particular case) compounded annually, shall provide the amount or
amounts payable when due.
    (iii) Such amount or accrual therefor, as shall have been credited
to the account of any certificate holder in the form of any credit, or
any dividend, or any interest in addition to the minimum maturity or
face amount specified in the certificate, plus any accumulations on any
amount so credited or accrued at rates required under the terms of the
certificate.
    (iv) An amount equal to all advance payments made by certificate
holders, plus any accumulations thereon at rates required under the
terms of the certificate.
    (v) Amounts for other appropriate contingency reserves, for death
and disability benefits or for reinstatement rights on any certificate
providing for such benefits or rights.
    (l) Inapplicable captions. Attention is directed to the provisions
of Sec. Sec.  210.4-02 and 210.4-03 which permit the omission of
separate captions in financial statements as to which the items and
conditions are not present, or the amounts involved not significant.
However, amounts involving directors, officers, and affiliates shall
nevertheless be separately set forth except as otherwise specifically
permitted under a particular caption.
    (m) Securities Lending. State in a note unless disclosed elsewhere
the following information regarding securities lending activities and
cash collateral management:
    (1) The gross income from securities lending activities, including
income from cash collateral reinvestment;
    (2) The dollar amount of all fees and/or compensation paid by the
registrant for securities lending activities and related services,
including borrower rebates and cash collateral management services;
    (3) The net income from securities lending activities;
    (4) The terms governing the compensation of the securities lending
agent, including any revenue sharing split, with the related percentage
split between the registrant and the securities lending agent, and/or
any fee-for-service, and a description of services included;
    (5) The details of any other fees paid directly or indirectly,
including any fees paid directly by the registrant for cash collateral
management and any management fee deducted from a pooled investment
vehicle in which cash collateral is invested; and
    (6) The monthly average of the value of portfolio securities on
loan.

0
6. Revise Sec.  210.6-04 to read as follows:

Sec.  210.6-04  Balance sheets.

    This section is applicable to balance sheets filed by registered
investment companies and business development companies except for
persons who substitute a statement of net assets in accordance with the
requirements specified in Sec.  210.6-05, and issuers of face-amount
certificates which are subject to the special provisions of Sec.
210.6-06. Balance sheets filed under this rule shall comply with the
following provisions:
Assets
    1. Investments in securities of unaffiliated issuers.
    2. Investments in and advances to affiliates. State separately
investments in and advances to: (a) Controlled companies and (b) other
affiliates.
    3. Other investments. State separately amounts of assets related to
(a) variation margin receivable on futures contracts, (b) forward
foreign currency contracts; (c) swap contracts; and (d) investments--
other than those presented in Sec. Sec.  210.12-12, 12-12A, 12-12B, 12-
13, 12-13A, 12-13B, and 12-13C.
    4. Cash. Include under this caption cash on hand and demand
deposits. Provide in a note to the financial statements the information
required under Sec.  210.5-02.1 regarding restrictions and compensating
balances.
    5. Receivables. (a) State separately amounts receivable from (1)
sales of investments; (2) subscriptions to capital shares; (3)
dividends and interest; (4) directors and officers; and (5) others.
    (b) If the aggregate amount of notes receivable exceeds 10 percent
of the aggregate amount of receivables, the above information shall be
set forth separately, in the balance sheet or in a note thereto, for
accounts receivable and notes receivable.
    6. Deposits for securities sold short and other investments. State
separately amounts held by others in connection with: (a) Short sales;
(b) open option contracts (c) futures contracts, (d) forward foreign
currency contracts; (e) swap contracts; and (f) investments--other than
those presented in Sec. Sec.  210.12-12, 12-12A, 12-12B, 12-13, 12-13A,
12-13B, and 12-13C.
    7. Other assets. State separately (a) prepaid and deferred
expenses; (b) pension and other special funds; (c) organization
expenses; and (d) any other significant item not properly classified in
another asset caption.
    8. Total assets.
Liabilities
    9. Other investments. State separately amounts of liabilities
related to: (a) Securities sold short; (b) open option contracts
written; (c) variation margin payable on futures contracts, (d) forward
foreign currency contracts; (e) swap contracts; and (f) investments--
other than those presented in Sec. Sec.  210.12-12, 12-12A, 12-12B, 12-
13, 12-13A, 12-13B, and 12-13C.
    10. Accounts payable and accrued liabilities. State separately
amounts payable for: (a) Other purchases of securities; (b) capital
shares redeemed; (c) dividends or other distributions on capital
shares; and (d) others. State separately the amount of any other
liabilities which are material.

    11. Deposits for securities loaned. State the value of securities
loaned and indicate the nature of the collateral received as security
for the loan, including the amount of any cash received.
    12. Other liabilities. State separately (a) amounts payable for
investment advisory, management and service fees; and (b) the total
amount payable to: (1) Officers and directors; (2) controlled
companies; and (3) other affiliates, excluding any amounts owing to
noncontrolled affiliates which arose in the ordinary course of business
and which are subject to usual trade terms.
    13. Notes payable, bonds and similar debt. (a) State separately
amounts payable to: (1) Banks or other financial institutions for
borrowings; (2) controlled companies; (3) other affiliates; and (4)
others, showing for each category amounts payable within one year and
amounts payable after one year.
    (b) Provide in a note the information required under Sec.  210.5-
02.19(b) regarding unused lines of credit for short-term financing and
Sec.  210.5-02.22(b) regarding unused commitments for long-term
financing arrangements.
    14. Total liabilities.
    15. Commitments and contingent liabilities.
Net Assets
    16. Units of capital. (a) Disclose the title of each class of
capital shares or other capital units, the number authorized, the
number outstanding, and the dollar amount thereof.
    (b) Unit investment trusts, including those which are issuers of
periodic payment plan certificates, also shall state in a note to the
financial statements: (1) The total cost to the investors of each class
of units or shares; (2) the adjustment for market depreciation or
appreciation; (3) other deductions from the total cost to the investors
for fees, loads and other charges, including an explanation of such
deductions; and (4) the net amount applicable to the investors.
    17. Accumulated undistributed income (loss). Disclose:
    (a) The accumulated undistributed investment income-net,
    (b) accumulated undistributed net realized gains (losses) on
investment transactions, and
    (c) net unrealized appreciation (depreciation) in value of
investments at the balance sheet date.
    18. Other elements of capital. Disclose any other elements of
capital or residual interests appropriate to the capital structure of
the reporting entity.
    19. Net assets applicable to outstanding units of capital. State
the net asset value per share.
0
7. Revise Sec.  210.6-05 to read as follows:

Sec.  210.6-05  Statements of net assets.

    In lieu of the balance sheet otherwise required by Sec.  210.6-04,
persons may substitute a statement of net assets if at least 95 percent
of the amount of the person's total assets are represented by
investments in securities of unaffiliated issuers. If presented in such
instances, a statement of net assets shall consist of the following:
Statements of Net Assets
    1. A schedule of investments in securities of unaffiliated issuers
as prescribed in Sec.  210.12-12.
    2. The excess (or deficiency) of other assets over (under) total
liabilities stated in one amount, except that any amounts due from or
to officers, directors, controlled persons, or other affiliates,
excluding any amounts owing to noncontrolled affiliates which arose in
the ordinary course of business and which are subject to usual trade
terms, shall be stated separately.
    3. Disclosure shall be provided in the notes to the financial
statements for any item required under Sec.  210.6-04.3 and Sec. Sec.
210.6-04.9 to 210.6-04.13.
    4. The balance of the amounts captioned as net assets. The number
of outstanding shares and net asset value per share shall be shown
parenthetically.
    5. The information required by (i) Sec.  210.6-04.16, (ii) Sec.
210.6-04.17 and (iii) Sec.  210.6-04.18 shall be furnished in a note to
the financial statements.
0
8. Revise Sec.  210.6-07 to read as follows:

Sec.  210.6-07  Statements of operations.

    Statements of operations filed by registered investment companies
and business development companies, other than issuers of face-amount
certificates subject to the special provisions of Sec.  210.6-08, shall
comply with the following provisions:
Statements of Operations
    1. Investment income. State separately income from: (a) Cash
dividends; (b) non-cash dividends; (c) interest on securities excluding
payment in kind interest; (d) payment in kind interest on securities;
and (e) other income. If income from investments in or indebtedness of
affiliates is included hereunder, such income shall be segregated under
an appropriate caption subdivided to show separately income from: (1)
Controlled companies; and (2) other affiliates. If non-cash dividends
or payment in kind interest are included in income, the bases of
recognition and measurement used in respect to such amounts shall be
disclosed. Any other category of income which exceeds five percent of
the total shown under this caption shall be stated separately.
    2. Expenses. (a) State separately the total amount of investment
advisory, management and service fees, and expenses in connection with
research, selection, supervision, and custody of investments. Amounts
of expenses incurred from transactions with affiliated persons shall be
disclosed together with the identity of and related amount applicable
to each such person accounting for five percent or more of the total
expenses shown under this caption together with a description of the
nature of the affiliation. Expenses incurred within the person's own
organization in connection with research, selection and supervision of
investments shall be stated separately. Reductions or reimbursements of
management or service fees shall be shown as a negative amount or as a
reduction of total expenses shown under this caption.
    (b) State separately any other expense item the amount of which
exceeds five percent of the total expenses shown under this caption.
    (c) A note to the financial statements shall include information
concerning management and service fees, the rate of fee, and the base
and method of computation. State separately the amount and a
description of any fee reductions or reimbursements representing: (1)
Expense limitation agreements or commitments; and (2) offsets received
from broker-dealers showing separately for each amount received or due
from (i) unaffiliated persons; and (ii) affiliated persons. If no
management or service fees were incurred for a period, state the reason
therefor.
    (d) If any expenses were paid otherwise than in cash, state the
details in a note.
    (e) State in a note to the financial statements the amount of
brokerage commissions (including dealer markups) paid to affiliated
broker-dealers in connection with purchase and sale of investment
securities. Open-end management companies shall state in a note the net
amounts of sales charges deducted from the proceeds of sale of capital
shares which were retained by any affiliated principal underwriter or
other affiliated broker-dealer.
    (f) State separately all amounts paid in accordance with a plan
adopted

under 17 CFR 270.12b-1 of this chapter. Reimbursement to the fund of
expenses incurred under such plan (12b-1 expense reimbursement) shall
be shown as a negative amount and deducted from current 12b-1 expenses.
If 12b-1 expense reimbursements exceed current 12b-1 costs, such excess
shall be shown as a negative amount used in the calculation of total
expenses under this caption.
    (g)(1) Brokerage/Service Arrangements. If a broker-dealer or an
affiliate of the broker-dealer has, in connection with directing the
person's brokerage transactions to the broker-dealer, provided, agreed
to provide, paid for, or agreed to pay for, in whole or in part,
services provided to the person (other than brokerage and research
services as those terms are used in section 28(e) of the Securities
Exchange Act of 1934 [15 U.S.C. 78bb(e)]), include in the expense items
set forth under this caption the amount that would have been incurred
by the person for the services had it paid for the services directly in
an arms-length transaction.
    (2) Expense Offset Arrangements. If the person has entered into an
agreement with any other person pursuant to which such other person
reduces, or pays a third party which reduces, by a specified or
reasonably ascertainable amount, its fees for services provided to the
person in exchange for use of the person's assets, include in the
expense items set forth under this caption the amount of fees that
would have been incurred by the person if the person had not entered
into the agreement.
    (3) Financial Statement Presentation. Show the total amount by
which expenses are increased pursuant to paragraphs (1) and (2) of this
paragraph (2)(g) as a corresponding reduction in total expenses under
this caption. In a note to the financial statements, state separately
the total amounts by which expenses are increased pursuant to
paragraphs (1) and (2) of this paragraph (2)(g), and list each category
of expense that is increased by an amount equal to at least 5 percent
of total expenses. If applicable, the note should state that the person
could have employed the assets used by another person to produce income
if it had not entered into an arrangement described in paragraph
(2)(g)(2) of this section.
    3. Interest and amortization of debt discount and expense. Provide
in the body of the statements or in the footnotes, the average dollar
amount of borrowings and the average interest rate.
    4. Investment income before income tax expense.
    5. Income tax expense. Include under this caption only taxes based
on income.
    6. Investment income--net.
    7. Realized and unrealized gain (loss) on investments--net. (a)
State separately the net realized gain or loss from: (1) Transactions
in investment securities of unaffiliated issuers, (2) transactions in
investment securities of affiliated issuers, (3) expiration or closing
of option contracts written, (4) closed short positions in securities,
(5) expiration or closing of futures contracts, (6) settlement of
forward foreign currency contracts, (7) expiration or closing of swap
contracts, and (8) transactions in other investments held during the
period.
    (b) Distributions of realized gains by other investment companies
shall be shown separately under this caption.
    (c) State separately the amount of the net increase or decrease
during the period in the unrealized appreciation or depreciation in the
value of: (1) Investment securities of unaffiliated issuers, (2)
investment securities of affiliated issuers, (3) option contracts
written, (4) short positions in securities, (5) futures contracts, (6)
forward foreign currency contracts, (7) swap contracts, and (8) other
investments held at the end of the period.
    (d) State separately any: (1) Federal income taxes and (2) other
income taxes applicable to realized and unrealized gain (loss) on
investments, distinguishing taxes payable currently from deferred
income taxes.
    8. Net gain (loss) on investments.
    9. Net increase (decrease) in net assets resulting from operations.
0
9. Revise Sec.  210.6-10 to read as follows:

Sec.  210.6-10  What schedules are to be filed.

    (a) The schedules shall be examined by an independent accountant if
the related financial statements are so examined.
    (b) Management investment companies. (1) Except as otherwise
provided in the applicable form, the schedules specified in this
paragraph shall be filed for management investment companies as of the
dates of the most recent audited balance sheet and any subsequent
unaudited statement being filed for each person or group.
    Schedule I--Investments in securities of unaffiliated issuers. The
schedule prescribed by Sec.  210.12-12 shall be filed in support of
caption 1 of each balance sheet.
    Schedule II--Investments in and advances to affiliates. The
schedule prescribed by Sec.  210.12-14 shall be filed in support of
caption 2 of each balance sheet.
    Schedule III--Investments--securities sold short. The schedule
prescribed by Sec.  210.12-12A shall be filed in support of caption
9(a) of each balance sheet.
    Schedule IV--Open option contracts written. The schedule prescribed
by Sec.  210.12-13 shall be filed in support of caption 9(b) of each
balance sheet.
    Schedule V--Open futures contracts. The schedule prescribed by
Sec.  210.12-13A shall be filed in support of captions 3(a) and 9(c) of
each balance sheet.
    Schedule VI--Open forward foreign currency contracts. The schedule
prescribed by Sec.  210.12-13B shall be filed in support of captions
3(b) and 9(d) of each balance sheet.
    Schedule VII--Open swap contracts. The schedule prescribed by Sec.
210.12-13C shall be filed in support of captions 3(c) and 9(e) of each
balance sheet.
    Schedule VIII--Investments--other than those presented in
Sec. Sec.  210.12-12, 12-12A, 12-12B, 12-13, 12-13A, 12-13B and 12-13C.
The schedule prescribed by Sec.  210.12-13D shall be filed in support
of captions 3(d) and 9(f) of each balance sheet.
    (2) When permitted by the applicable form, the schedule specified
in this paragraph may be filed for management investment companies as
of the dates of the most recent audited balance sheet and any
subsequent unaudited statement being filed for each person or group.
    Schedule IX--Summary schedule of investments in securities of
unaffiliated issuers. The schedule prescribed by Sec.  210.12-12B may
be filed in support of caption 1 of each balance sheet.
    (c) Unit investment trusts. Except as otherwise provided in the
applicable form:
    (1) Schedules I and II, specified below in this section, shall be
filed for unit investment trusts as of the dates of the most recent
audited balance sheet and any subsequent unaudited statement being
filed for each person or group.
    (2) Schedule III, specified below in this section, shall be filed
for unit investment trusts for each period for which a statement of
operations is required to be filed for each person or group.
    Schedule I--Investment in securities. The schedule prescribed by
Sec.  210.12-12 shall be filed in support of caption 1 of each balance
sheet (Sec.  210.6-04).
    Schedule II--Allocation of trust assets to series of trust shares.
If the trust assets are specifically allocated to different series of
trust shares, and if such allocation is not shown in the balance sheet
in columnar form or by the filing of separate statements for each

series of trust shares, a schedule shall be filed showing the amount of
trust assets, indicated by each balance sheet filed, which is
applicable to each series of trust shares.
    Schedule III--Allocation of trust income and distributable funds to
series of trust shares. If the trust income and distributable funds are
specifically allocated to different series of trust shares and if such
allocation is not shown in the statement of operations in columnar form
or by the filing of separate statements for each series of trust
shares, a schedule shall be submitted showing the amount of income and
distributable funds, indicated by each statement of operations filed,
which is applicable to each series of trust shares.
    (d) Face-amount certificate investment companies. Except as
otherwise provided in the applicable form:
    (1) Schedules I, V and X, specified below, shall be filed for face-
amount certificate investment companies as of the dates of the most
recent audited balance sheet and any subsequent unaudited statement
being filed for each person or group.
    (2) All other schedules specified below in this section shall be
filed for face-amount certificate investment companies for each period
for which a statement of operations is filed, except as indicated for
Schedules III and IV.
    Schedule I--Investment in securities of unaffiliated issuers. The
schedule prescribed by Sec.  210.12-21 shall be filed in support of
caption 1 and, if applicable, caption 5(a) of each balance sheet.
Separate schedules shall be furnished in support of each caption, if
applicable.
    Schedule II--Investments in and advances to affiliates and income
thereon. The schedule prescribed by Sec.  210.12-22 shall be filed in
support of captions 1 and 5(b) of each balance sheet and caption 1 of
each statement of operations. Separate schedules shall be furnished in
support of each caption, if applicable.
    Schedule III--Mortgage loans on real estate and interest earned on
mortgages. The schedule prescribed by Sec.  210.12-23 shall be filed in
support of captions 1 and 5(c) of each balance sheet and caption 1 of
each statement of operations, except that only the information required
by column G and note 8 of the schedule need be furnished in support of
statements of operations for years for which related balance sheets are
not required.
    Schedule IV--Real estate owned and rental income. The schedule
prescribed by Sec.  210.12-24 shall be filed in support of captions 1
and 5(a) of each balance sheet and caption 1 of each statement of
operations for rental income included therein, except that only the
information required by columns H, I and J, and item ``Rent from
properties sold during the period'' and note 4 of the schedule need be
furnished in support of statements of operations for years for which
related balance sheets are not required.
    Schedule V--Qualified assets on deposit. The schedule prescribed by
Sec.  210.12-27 shall be filed in support of the information required
by caption 4 of Sec.  210.6-06 as to total amount of qualified assets
on deposit.
    Schedule VI--Certificate reserves. The schedule prescribed by Sec.
210.12-26 shall be filed in support of caption 7 of each balance sheet.
    Schedule VII--Valuation and qualifying accounts. The schedule
prescribed by Sec.  210.12-09 shall be filed in support of all other
reserves included in the balance sheet.
0
10. Revise Sec.  210.12-12 to read as follows:
For Management Investment Companies

Sec.  210.12-12  Investments in securities of unaffiliated issuers.

               [For Management Investment Companies Only]
------------------------------------------------------------------------
             Col. A                     Col. B              Col. C
------------------------------------------------------------------------
Name of issuer and title of       Balance held at     Value of each item
 issue.1 2 3 4                     close of period.    at close of
                                   Number of shares--  period.5 6 8 9 10
                                   principal amount    11 12
                                   of bonds and
                                   notes.\7\
------------------------------------------------------------------------
\1\ Each issue shall be listed separately: Provided, however, that an
  amount not exceeding five percent of the total of Column C may be
  listed in one amount as ``Miscellaneous securities,'' provided the
  securities so listed are not restricted, have been held for not more
  than one year prior to the date of the related balance sheet, and have
  not previously been reported by name to the shareholders of the person
  for which the schedule is filed or to any exchange, or set forth in
  any registration statement, application, or annual report or otherwise
  made available to the public. If any securities are listed as
  ``Miscellaneous securities,'' briefly explain in a footnote what the
  term represents.
\2\ Categorize the schedule by (i) the type of investment (such as
  common stocks, preferred stocks, convertible securities, fixed income
  securities, government securities, options purchased, warrants, loan
  participations and assignments, commercial paper, bankers'
  acceptances, certificates of deposit, short-term securities,
  repurchase agreements, other investment companies, and so forth); (ii)
  the related industry of the investment; and (iii) the related country,
  or geographic region of the investment. Short-term debt instruments
  (i.e., debt instruments whose maturities or expiration dates at the
  time of acquisition are one year or less) of the same issuer may be
  aggregated, in which case the range of interest rates and maturity
  dates shall be indicated. For issuers of periodic payment plan
  certificates and unit investment trusts, list separately: (i) Trust
  shares in trusts created or serviced by the depositor or sponsor of
  this trust; (ii) trust shares in other trusts; and (iii) securities of
  other investment companies. Restricted securities shall not be
  combined with unrestricted securities of the same issuer. Repurchase
  agreements shall be stated separately showing for each the name of the
  party or parties to the agreement, the date of the agreement, the
  total amount to be received upon repurchase, the repurchase date and
  description of securities subject to the repurchase agreements.
\3\ For options purchased, all information required by Sec.   210.12-13
  for options contracts written should be shown. Options on underlying
  investments where the underlying investment would otherwise be
  presented in accordance with Sec.  Sec.   210.12-12, 12-13A, 12-13B,
  12-13C, or 12-13D should include the description of the underlying
  investment as would be required by Sec.  Sec.   210.12-12, 12-13A, 12-
  13B, 12-13C, or 12-13D as part of the description of the option.
\4\ Indicate the interest rate or preferential dividend rate and
  maturity date, as applicable, for preferred stocks, convertible
  securities, fixed income securities, government securities, loan
  participations and assignments, commercial paper, bankers'
  acceptances, certificates of deposit, short-term securities,
  repurchase agreements, or other instruments with a stated rate of
  income. For variable rate securities, indicate a description of the
  reference rate and spread. For securities with payment in kind income,
  disclose the rate paid in kind.
\5\ The subtotals for each category of investments, subdivided both by
  type of investment and industry, country, or geographic region, shall
  be shown together with their percentage value compared to net assets.
\6\ Column C shall be totaled. The total of column C shall agree with
  the correlative amounts shown on the related balance sheet.

\7\ Indicate by an appropriate symbol each issue of securities which is
  non-income producing. Evidences of indebtedness and preferred shares
  may be deemed to be income producing if, on the respective last
  interest payment date or date for the declaration of dividends prior
  to the date of the related balance sheet, there was only a partial
  payment of interest or a declaration of only a partial amount of the
  dividends payable; in such case, however, each such issue shall be
  indicated by an appropriate symbol referring to a note to the effect
  that, on the last interest or dividend date, only partial interest was
  paid or partial dividends declared. If, on such respective last
  interest or dividend date, no interest was paid or no cash or in kind
  dividends declared, the issue shall not be deemed to be income
  producing. Common shares shall not be deemed to be income producing
  unless, during the last year preceding the date of the related balance
  sheet, there was at least one dividend paid upon such common shares.
\8\ Indicate by an appropriate symbol each issue of restricted
  securities. State the following in a footnote: (a) As to each such
  issue: (1) Acquisition date, (2) carrying value per unit of investment
  at date of related balance sheet, e.g., a percentage of current market
  value of unrestricted securities of the same issuer, etc., and (3) the
  cost of such securities; (b) as to each issue acquired during the year
  preceding the date of the related balance sheet, the carrying value
  per unit of investment of unrestricted securities of the same issuer
  at: (1) The day the purchase price was agreed to; and (2) the day on
  which an enforceable right to acquire such securities was obtained;
  and (c) the aggregate value of all restricted securities and the
  percentage which the aggregate value bears to net assets.
\9\ Indicate by an appropriate symbol each issue of securities whose
  fair value was determined using significant unobservable inputs.
\10\ Indicate by an appropriate symbol each issue of illiquid
  securities.
\11\ Indicate by an appropriate symbol each issue of securities held in
  connection with open put or call option contracts, loans for short
  sales, or where any portion of the issue is on loan.
\12\ State in a footnote the following amounts based on cost for Federal
  income tax purposes: (a) Aggregate gross unrealized appreciation for
  all securities in which there is an excess of value over tax cost, (b)
  the aggregate gross unrealized depreciation for all securities in
  which there is an excess of tax cost over value, (c) the net
  unrealized appreciation or depreciation, and (d) the aggregate cost of
  securities for Federal income tax purposes.

0
11. Revise Sec.  210.12-12A to read as follows:

Sec.  210.12-12A  Investments--securities sold short.

               [For Management Investment Companies Only]
------------------------------------------------------------------------
             Col. A                     Col. B              Col. C
------------------------------------------------------------------------
Name of issuer and title of       Balance of short    Value of each open
 issue.1 2 3                       position at close   short position.4
                                   of period.          5 6 7 8.
                                   (number of
                                   shares).
------------------------------------------------------------------------
\1\ Each issue shall be listed separately.
\2\ Categorize the schedule as required by instruction 2 of Sec.
  210.12-12.
\3\ Indicate the interest rate or preferential dividend rate and
  maturity date, as applicable, as required by instruction 4 of Sec.
  210.12-12.
\4\ The subtotals for each category of investments, subdivided both by
  type of investment and industry, country, or geographic region, shall
  be shown together with their percentage value compared to net assets.
\5\ Column C shall be totaled. The total of column C shall agree with
  the correlative amounts shown on the related balance sheet.
\6\ Indicate by an appropriate symbol each issue of securities whose
  fair value was determined using significant unobservable inputs.
\7\ Indicate by an appropriate symbol each issue of securities held in
  connection with open put or call option contracts.
\8\ State in a footnote the following amounts based on cost for Federal
  income tax purposes: (a) Aggregate gross unrealized appreciation for
  all securities in which there is an excess of value over tax cost, (b)
  the aggregate gross unrealized depreciation for all securities in
  which there is an excess of tax cost over value, (c) the net
  unrealized appreciation or depreciation, and (d) the aggregate cost of
  securities for Federal income tax purposes.

0
12. Revise Sec.  210.12-12B to read as follows:

Sec.  210.12-12B  Summary schedule of investments in securities of
unaffiliated issuers.

----------------------------------------------------------------------------------------------------------------
               Column A                        Column B                 Column C                 Column D
----------------------------------------------------------------------------------------------------------------
Name of issuer and title of issue.1 3  Balance held at close    Value of each item at    Percentage value
 4 5 6 7 8                              of period. Number of     close of period.2 9 11   compared to net
                                        shares--principal        12 13 14 15              assets.
                                        amount of bonds and
                                        notes.\10\
----------------------------------------------------------------------------------------------------------------
\1\ Categorize the schedule by (a) the type of investment (such as common stocks, preferred stocks, convertible
  securities, fixed income securities, government securities, options purchased, warrants, loan participations
  and assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities,
  repurchase agreements, other investment companies, and so forth); (b) the related industry of the investment;
  and (c) the related country or geographic region of the investment.
\2\ The subtotals for each category of investments, subdivided both by type of investment and industry, country,
  or geographic region, shall be shown together with their percentage value compared to net assets.
\3\ Indicate the interest rate or preferential dividend rate and maturity date, as applicable, for preferred
  stocks, convertible securities, fixed income securities, government securities, loan participations and
  assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities,
  repurchase agreements, or other instruments with a stated rate of income. For variable rate securities,
  indicate a description of the reference rate and spread. For securities with payment in kind income, disclose
  the rate paid in kind.
\4\ Except as provided in note 6, list separately the 50 largest issues and any other issue the value of which
  exceeded one percent of net asset value of the registrant as of the close of the period. For purposes of the
  list (including, in the case of short-term debt instruments, the first sentence of note 4), aggregate and
  treat as a single issue, respectively, (a) short-term debt instruments (i.e., debt instruments whose
  maturities or expiration dates at the time of acquisition are one year or less) of the same issuer (indicating
  the range of interest rates and maturity dates); and (b) fully collateralized repurchase agreements (indicate
  in a footnote the range of dates of the repurchase agreements, the total purchase price of the securities, the
  total amount to be received upon repurchase, the range of repurchase dates, and description of securities
  subject to the repurchase agreements). Restricted and unrestricted securities of the same issue should be
  aggregated for purposes of determining whether the issue is among the 50 largest issues, but should not be
  combined in the schedule. For purposes of determining whether the value of an issue exceeds one percent of net
  asset value, aggregate and treat as a single issue all securities of any one issuer, except that all fully
  collateralized repurchase agreements shall be aggregated and treated as a single issue. The U.S. Treasury and
  each agency, instrumentality, or corporation, including each government-sponsored entity, that issues U.S.
  government securities is a separate issuer.

\5\ For options purchased, all information required by Sec.   210.12-13 for options contracts written should be
  shown. Options on underlying investments where the underlying investment would otherwise be presented in
  accordance with Sec.  Sec.   210.12-12, 12-13A, 12-13B, 12-13C, or 12-13D should include the description of