Putnam Managed Municipal Income Trust, et al.

• Published date: 23 April 2019
• Citation: 84 FR 16920
• Record Number: 2019-08067
• Section: Notices
• Court: Securities And Exchange Commission

16920

Federal Register / Vol. 84, No. 78 / Tuesday, April 23, 2019 / Notices

1

Applicants request that the order also apply to

each other registered closed-end investment

company advised or to be advised in the future by

Putnam Management, Putnam Investments, or by an

entity controlling, controlled by, or under common

control (within the meaning of section 2(a)(9) of the

Act) with Putnam Management or Putnam

Investments (including any successor in interest)

(each such entity, including the Advisers, also the

‘‘Adviser’’) that in the future seeks to rely on the

order (such investment companies, together with

the Funds, are collectively the ‘‘Funds’’ and,

individually, a ‘‘Fund’’). A successor in interest is

limited to entities that result from a reorganization

into another jurisdiction or a change in the type of

business organization.

Electronic Comments

•Use the Commission’s internet

comment form (http://www.sec.gov/

rules/sro.shtml); or

•Send an email to rule-comments@

sec.gov. Please include File Number SR–

OCC–2019–801 on the subject line.

Paper Comments

•Send paper comments in triplicate

to Secretary, Securities and Exchange

Commission, 100 F Street NE,

Washington, DC 20549.

All submissions should refer to File

Number SR–OCC–2019–801. This file

number should be included on the

subject line if email is used. To help the

Commission process and review your

comments more efficiently, please use

only one method. The Commission will

post all comments on the Commission’s

internet website (http://www.sec.gov/

rules/sro.shtml). Copies of the

submission, all subsequent

amendments, all written statements

with respect to the advance notice that

are filed with the Commission, and all

written communications relating to the

advance notice between the

Commission and any person, other than

those that may be withheld from the

public in accordance with the

provisions of 5 U.S.C. 552, will be

available for website viewing and

printing in the Commission’s Public

Reference Room, 100 F Street NE,

Washington, DC 20549 on official

business days between the hours of

10:00 a.m. and 3:00 p.m. Copies of the

filing also will be available for

inspection and copying at the principal

office of the self-regulatory organization.

All comments received will be posted

without change. Persons submitting

comments are cautioned that we do not

redact or edit personal identifying

information from comment submissions.

You should submit only information

that you wish to make available

publicly.

All submissions should refer to File

Number SR–OCC–2019–801 and should

be submitted on or before May 7, 2019.

By the Commission.

Jill M. Peterson,

Assistant Secretary.

[FR Doc. 2019–08083 Filed 4–22–19; 8:45 am]

BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE

COMMISSION

[Investment Company Act Release No.

33449; File No. 812–14970]

Putnam Managed Municipal Income

Trust, et al.

April 17, 2019.

AGENCY

: Securities and Exchange

Commission (‘‘Commission’’).

ACTION

: Notice.

Notice of an application under section

6(c) of the Investment Company Act of

1940 (‘‘Act’’) for an exemption from

section 19(b) of the Act and rule 19b–

1 under the Act to permit registered

closed-end investment companies to

make periodic distributions of long-term

capital gains more frequently than

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

1. Applicants: Putnam Managed

Municipal Income Trust (‘‘PMM’’), a

diversified closed-end investment

company registered under the Act and

organized as a Massachusetts business

trust; Putnam Master Intermediate

Income Trust (‘‘PIM’’), a diversified

closed-end investment company

registered under the Act and organized

as a Massachusetts business trust;

Putnam Municipal Opportunities Trust

(‘‘PMO’’), a non-diversified closed-end

investment company registered under

the Act and organized as a

Massachusetts business trust; Putnam

Premier Income Trust (‘‘PPT,’’ and

together with PMM, PIM, and PMO, the

‘‘Funds’’), a non-diversified closed-end

investment company registered under

the Act and organized as a

Massachusetts business trust; Putnam

Investment Management, LLC (‘‘Putnam

Management’’), a limited liability

company organized under the laws of

Massachusetts; and Putnam Investments

Limited (‘‘Putnam Investments,’’ and

together with Putnam Management, the

‘‘Advisers’’), a private limited company

organized under the laws of the United

Kingdom, each of Putnam Management

and Putnam Investments registered

under the Investment Advisers Act of

1940, and serving as investment adviser

and sub-adviser to the Funds,

respectively (the Advisers, together with

the Funds, the ‘‘Applicants’’).

1

Filing Dates: The application was

filed on November 6, 2018, and

amended on March 18, 2019.

Hearing or Notification of Hearing: An

order granting the application will be

issued unless the Commission orders a

hearing. Interested persons may request

a hearing by writing to the

Commission’s Secretary and serving

applicants with a copy of the request,

personally or by mail. Hearing requests

should be received by the Commission

by 5:30 p.m. on May 13, 2019, and

should be accompanied by proof of

service on applicants, in the form of an

affidavit or, for lawyers, a certificate of

service. Pursuant to Rule 0–5 under the

Act, hearing requests should state the

nature of the writer’s interest, any facts

bearing upon the desirability of a

hearing on the matter, the reason for the

request, and the issues contested.

Persons who wish to be notified of a

hearing may request notification by

writing to the Commission’s Secretary.

ADDRESSES

: The Commission: Secretary,

U.S. Securities and Exchange

Commission, 100 F Street NE,

Washington, DC 20549–1090.

Applicants: Bryan Chegwidden, Esq.,

Ropes & Gray LLP, 1211 Avenue of the

Americas, New York, New York 10036

and Robert T. Burns, Vice President,

Putnam Investment Management, LLC,

100 Federal Street, Boston,

Massachusetts 02110.

FOR FURTHER INFORMATION CONTACT

: Jill

Ehrlich, Senior Counsel at (202) 551–

6819, or Andrea Ottomanelli Magovern,

Branch Chief, at (202) 551–6821

(Division of Investment Management,

Chief Counsel’s Office).

SUPPLEMENTARY INFORMATION

: The

following is a summary of the

application. The complete application

may be obtained via the Commission’s

website by searching for the file

number, or for an applicant using the

Company name box, at http://

www.sec.gov/search/search.htm, or by

calling (202) 551–8090.

Summary of the Application

1. Section 19(b) of the Act generally

makes it unlawful for any registered

investment company to make long-term

capital gains distributions more than

once every twelve months. Rule 19b–1

under the Act limits to one the number

of capital gain dividends, as defined in

section 852(b)(3)(C) of the Internal

Revenue Code of 1986 (‘‘Code,’’ and

such dividends, ‘‘distributions’’), that a

VerDate Sep<11>2014 17:49 Apr 22, 2019 Jkt 247001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 E:\FR\FM\23APN1.SGM 23APN1

jbell on DSK3GLQ082PROD with NOTICES

16921

Federal Register / Vol. 84, No. 78 / Tuesday, April 23, 2019 / Notices

1

15 U.S.C. 78s(b)(1).

2

17 CFR 240.19b–4.

3

Capitalized terms used herein and not defined

shall have the meaning assigned to such terms in

the FICC Government Securities Division (‘‘GSD’’)

Rulebook (‘‘GSD Rules’’) and the FICC Mortgage-

Backed Securities Division (‘‘MBSD,’’ and together

with GSD, the ‘‘Divisions’’) Clearing Rules (‘‘MBSD

Rules’’), as applicable, available at http://

www.dtcc.com/legal/rules-and-procedures.aspx.

4

The GSD QRM Methodology Document was

filed as a confidential exhibit in the rule filing and

advance notice for GSD sensitivity VaR. See

Securities Exchange Act Release No. 83362 (June 1,

2018) 83 FR 26514 (June 7, 2018) (SR–FICC–2018–

001) (‘‘GSD Approval Order’’) and Securities

Exchange Act Release No. 83223 (May 11, 2018) 83

FR 23020 (May 17, 2018) (SR–FICC–2018–801)

(‘‘GSD Advance Notice’’).

5

The MBSD QRM Methodology Document was

filed as a confidential exhibit in the rule filing and

advance notice for MBSD sensitivity VaR. See

Securities Exchange Act Release No. 79868 (January

24, 2017) 82 FR 8780 (January 30, 2017) (SR–FICC–

2016–007) (‘‘MBSD Approval Order’’) and

Securities Exchange Act Release No. 79843 (January

19, 2017) 82 FR 8555 (January 26, 2017) (SR–FICC–

2016–801) (‘‘MBSD Advance Notice’’).

6

FICC has adopted procedures that would govern

in the event that the vendor fails to provide risk

analytics data used by FICC to calculate the VaR

Charge (which is defined in GSD Rule 1 and MBSD

Rule 1). Supra note 3. These procedures include the

application of the Margin Proxy. Specifically, each

Division’s Margin Proxy would be applied as an

alternative volatility calculation for the VaR Charge

(subject to the VaR Floor) if FICC determines that

the data disruption will extend beyond five (5)

business days. See GSD Approval Order and MBSD

Approval Order, supra notes 4 and 5.

7

Occasionally, portfolios contain classes of

securities that reflect market price changes that are

not consistently related to historical risk factors.

The value of these securities is often uncertain

because the securities’ market volume varies

widely, thus the price histories are limited. Because

the volume and price information for such

securities is not robust, a historical simulation

approach would not generate VaR Charge amounts

that adequately reflect the risk profile of such

securities. FICC utilizes a haircut method

(hereinafter referred to as the ‘‘GSD haircut charge’’)

based on the volatility of historic index returns for

any security that lacks sufficient historical data to

be incorporated into the sensitivity approach. See

GSD Approval Order and MBSD Approval Order,

supra notes 4 and 5. The GSD haircut charge

consists of two haircut rates: (i) The haircut rate for

mortgage-backed securities (‘‘MBS’’) pools without

sensitivity analytics data and (ii) the haircut rate for

Treasury and Agency bonds without sensitivity

analytics data (hereinafter, the ‘‘GSD Haircut

Rates’’). The proposal applies to the look-back

periods for the GSD Haircut Rates.

registered investment company may

make with respect to any one taxable

year, plus a supplemental distribution

made pursuant to section 855 of the

Code not exceeding 10% of the total

amount distributed for the year, plus

one additional capital gain dividend

made in whole or in part to avoid the

excise tax under section 4982 of the

Code.

2. Applicants believe that investors in

certain closed-end funds may prefer an

investment vehicle that provides regular

current income through a fixed

distribution policy (‘‘Distribution

Policy’’). Applicants propose that a

Fund be permitted to adopt a

Distribution Policy, pursuant to which

the Fund would distribute periodically

(as frequently as twelve times in a

taxable year) to its common

stockholders a fixed percentage of the

market price of the Fund’s common

stock at a particular point in time or a

fixed percentage of net asset value

(‘‘NAV’’) at a particular time or a fixed

amount per share of common stock, any

of which may be adjusted from time to

time.

3. Applicants request an order under

section 6(c) of the Act granting an

exemption from section 19(b) of the Act

and rule 19b–1 to permit a Fund to

distribute periodic capital gain

dividends (as defined in section

852(b)(3)(C) of the Code) as frequently

as twelve times in any one taxable year

in respect of its common stock and as

often as specified by, or determined in

accordance with the terms of, any

preferred stock issued by the Fund.

Section 6(c) of the Act provides, in

relevant part, that the Commission may

exempt any person or transaction from

any provision of the Act to the extent

that such exemption is necessary or

appropriate in the public interest and

consistent with the protection of

investors and the purposes fairly

intended by the policy and provisions of

the Act.

4. Applicants state that any order

granting the requested relief will be

subject to the terms and conditions

stated in the application, which

generally are designed to address the

concerns underlying section 19(b) and

rule 19b–1, including concerns about

proper disclosures and shareholders’

understanding of the source(s) of a

Fund’s distributions and concerns about

improper sales practices. Among other

things, such terms and conditions

require that (1) the board of directors or

trustees of the Fund (the ‘‘Board’’)

review such information as is

reasonably necessary to make an

informed determination of whether to

adopt the proposed Distribution Policy

and that the Board periodically review

the amount of the distributions in light

of the investment experience of the

Fund, and (2) that the Fund’s

shareholders receive appropriate

disclosures concerning the

distributions.

For the Commission, by the Division of

Investment Management, under delegated

authority.

Jill M. Peterson,

Assistant Secretary.

[FR Doc. 2019–08067 Filed 4–22–19; 8:45 am]

BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–85676; File No. SR–FICC–

2019–001]

Self-Regulatory Organizations; Fixed

Income Clearing Corporation; Notice of

Filing of Proposed Rule Change To

Amend the GSD and MBSD

Methodology Documents and the

MBSD Clearing Rules

April 17, 2019.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’)

1

and Rule 19b–4 thereunder,

2

notice is hereby given that on April 5,

2019, Fixed Income Clearing

Corporation (‘‘FICC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change as described in Items I, II and III

below, which Items have been prepared

by the clearing agency. The Commission

is publishing this notice to solicit

comments on the proposed rule change

from interested persons.

I. Clearing Agency’s Statement of the

Terms of Substance of the Proposed

Rule Change

The proposed rule change

3

consists of

amendments to the GSD Methodology

Document—GSD Initial Market Risk

Margin Model (‘‘GSD QRM

Methodology Document’’)

4

and the

MBSD Methodology and Model

Operations Document—MBSD

Quantitative Risk Model

5

(‘‘MBSD QRM

Methodology Document,’’ and together

with the GSD QRM Methodology

Document, the ‘‘QRM Methodology

Documents’’) to remove specific

references (and explanations relating

thereto) to the look-back periods for (1)

the alternative volatility calculation

(‘‘Margin Proxy’’)

6

of GSD and MBSD

and (2) the two haircut rates that form

the basis of the GSD haircut charge.

7

FICC would replace the specific

references to the look-back periods with

more general language that would (i)

refer to a monthly parameter report, (ii)

specify the governance around changing

the look-back periods, and (iii) state that

the look-back period would not be less

than one year. FICC is also proposing to

make certain clarifications, corrections,

and technical changes to the GSD QRM

Methodology Document, and a

clarification and certain technical

changes to the MBSD QRM

Methodology Document.

FICC is also proposing to make certain

clarifications to the MBSD Rules.

Specifically, FICC would add a

definition of ‘‘Margin Proxy’’ and use

VerDate Sep<11>2014 17:49 Apr 22, 2019 Jkt 247001 PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 E:\FR\FM\23APN1.SGM 23APN1

jbell on DSK3GLQ082PROD with NOTICES