SEC Grants No-Action Relief to RS Global Natural Resources Fund Regarding Sub-Advisory Agreement Approval
The SEC granted no-action relief to RS Global Natural Resources Fund ("RS Global"), SailingStone Capital Partners LLC ("SailingStone") and RS Investment Management Co. LLC, under Investment Company Act Section 15(a) ("Contracts of Advisers and Underwriters"), provided that RS Investment Management Co. enters into an interim sub-advisory agreement with SailingStone, which has not been approved by the vote of a majority of the outstanding voting securities of RS Global.
Section 15(a) prohibits a person from serving as an investment adviser to a registered investment company except pursuant to a written contract that has been approved by the vote of a majority of the outstanding voting securities of the registered investment company. However, Rule 15a-4 ("Temporary Exemption for Certain Investment Advisers") permits a person to act as an investment adviser to a registered investment company under an interim advisory agreement that has not been approved by the company's shareholders for a period of 150 days following the date on which the previous contract terminated.
In RS Global's no-action relief request, it stated that RS Investment Management Co. would like to enter into an interim sub-advisory agreement with SailingStone without a shareholder vote for a period of not more than 150 days following the effective date. The SEC granted the no-action relief.