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ABSTRACT
Pricing of Redeemable Securities for Distribution, Redemption, and Repurchase, Investment Company Act Release No. 14244 (Nov. 21, 1984)
Footnote 7:
A fund whose portfolio securities trade on several foreign exchanges or on one or more foreign exchanges in addition to a domestic market may continue to rely on the Division's no-action position in Putnam Growth Fund and Putnam International Equities Fund, Inc., (pub. avail. February 23, 1981) with regard to the limited circumstances under which a fund may use a previous closing price to calculate current net asset value. Under Putnam, if the foreign exchange on which a portfolio security is principally traded is closed at the time a fund computes its current net asset value, then the fund may use the previous closing price on the foreign exchange to calculate the value of the security, except when an event has occured since the time the value was established that is likely to have resulted in a change in such value. If an event does occur which will affect the value of portfolio securities after the market has closed, the fund must, to the best of its ability, determine the fair value of the securities, as of the time pricing is done under Rule 22c-1, by using appropriate indicia of value which, in certain cases, may include the opening price at which trading in the securities next begins.
This page was last updated on May 26, 2001.