Rule 12d1-4 under the Investment Company Act of 1940 permits funds to enter into “funds of funds” arrangements notwithstanding the prohibitions of Section 12(d)(1) of the Act of 1940, provided that certain conditions are met. The conditions require an acquiring fund and an acquired fund to enter into a funds of funds investment agreement and each fund’s adviser to evaluate the arrangements and make certain findings with respect to their funds. Most exemptive orders granting relief from the prohibitions of Section 12(d)(1) will also be rescinded as of the compliance date of Rule 12d1-4.
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