SEC Company Response from AUGUSTAR VARIABLE INSURANCE PRODUCTS FUND INC (CIK 0000315754) — Jul 20, 2021
AUGUSTAR VARIABLE INSURANCE PRODUCTS FUND INC (CIK 0000315754)
Date: July 20, 2021 · CIK: 0000315754 · Accession: 0001398344-21-014572
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File numbers found in text: 811-3015
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CORRESP
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One Financial Way
Cincinnati, Ohio 45242
Post Office Box 237
Cincinnati, Ohio 45201-0237
Telephone: 513-794-6100
VIA EDGAR CORRESPONDENCE
July 20, 2021
Jaea Hahn
Senior Counsel
U.S. Securities and Exchange Commission
Division of Investment Management
100 F Street NE
Washington, DC 20549
Re: Ohio National Fund, Inc. (“Registrant”)
Pre14A
File Nos. 002-67464 and 811-3015
Dear Ms. Hahn:
This letter responds to
comments of the staff of the Securities and Exchange Commission (“Commission”) on the above-referenced preliminary proxy statement
on Schedule 14A (the “Proxy Statement”), which you communicated to me by telephone on July 16, 2021. Registrant filed the
Proxy Statement with the Commission on July 6, 2021.
For convenience, each of
Registrant’s responses below is preceded by the applicable staff comment. Capitalized terms used herein have the meanings given
to them in the Proxy Statement. Registrant will give effect to disclosure changes made in response to staff comments by means of filing
a definitive proxy statement on Schedule 14A.
General Comments
1. Company Acknowledgement –
The Staff reminds the Registrant and its management that they are responsible for the accuracy and adequacy of their disclosures, notwithstanding
any review, comments, action or absence of action by the Staff.
Response: We acknowledge that
the Commission has reminded us that Registrant and its management are responsible for the accuracy and adequacy of their disclosures,
notwithstanding any review, comments, action or absence of action by the Staff.
2. Disclosure Changes –
Where a change is made to disclosure in response to a Staff comment, please make corresponding changes wherever such disclosure appears
in the proxy statement.
Response: Registrant confirms
that where a change is made to disclosure in response to a Staff comment, corresponding changes will be made wherever such disclosure
appears in the proxy statement.
Page 2
Specific Comments
1. Proposal 1 – Please
clarify whether the Transaction with Constellation will require the consent of ONMH’s members and, if so, whether Proposal 1 is
contingent on approval of the Sponsored Demutualization.
Response: The second paragraph
of “Proposal 1, Approval of New Investment Advisory Agreement” contains the following disclosure:
The Transaction, including the Sponsored
Demutualization, is expected to close in the second half of 2021, subject to the necessary approvals of ONMH’s voting members and
certain regulators, and customary closing conditions.
For additional clarity, the following
sentence will be included as the first sentence of the fifth paragraph of that section:
Proposal 1 is contingent upon the closing
of the Sponsored Demutualization, which requires the approval of ONMH’s voting members and certain regulators.
2. Effect on Fund Shareholders –
Please consider whether disclosure regarding compliance with Section 15(f) of the Investment Company Act of 1940 is appropriate.
Response:
The following will be added as the third paragraph in the “Effect on Fund Shareholders” section:
Section 15(f) of the 1940 Act
provides that, when a change in control of an investment adviser occurs, the investment adviser or any of its affiliated persons may
receive any amount or benefit in connection with the change in control as long as two conditions are met. The first condition
specifies that no “unfair burden” may be imposed on the fund as a result of a transaction relating to the change in
control, or any express or implied terms, conditions or understandings. The second condition specifies that, during the three-year
period immediately following consummation of the change in control transaction, at least 75% of the fund’s board of directors
must not be “interested persons” of the investment adviser or predecessor adviser ("Independent Directors"). The term “unfair
burden,” as defined in the 1940 Act, includes any arrangement during the two-year period after the change in control
transaction whereby the investment adviser (or predecessor or successor adviser), or any “interested person” (as defined
in the 1940 Act) of any such investment adviser, receives or is entitled to receive any compensation, directly or indirectly, from a
fund or its security holders (other than fees for bona fide investment advisory or other services), or from any person in connection
with the purchase or sale of securities or other property to, from, or on behalf of the fund (other than fees for bona fide
principal underwriting services). The Adviser represented to the Board that no unfair burden would be imposed on the Portfolios as a
result of the Transaction. Over 75% of the Board is comprised of Independent Directors.
3. Factors considered by the Board –
Please clarify whether the Board considered factors that weighed against its recommendations to approve Proposals 1 and 2.
Response: The Board discussed
a variety of factors in connection with its consideration of Proposals 1 and 2. Those factors considered most material are disclosed in
the Proxy Statement.
Page 3
4. Board Review and Approval of the New
Advisory Agreement– Please move the discussion of the factors the Board considered in approving the New Advisory Agreement
from Appendix D to the body of the Proxy Statement.
Response: The
requested change has been made.
* * * * *
If you have any questions
or additional comments, please contact me at (513) 794-6278.
Very truly yours,
/s/ Kimberly A. Plante
Kimberly A. Plante
Vice President and Counsel