§ 275.205-1 Definition of “investment performance” of an investment company and “investment record” of an appropriate index of securities prices.

Investment performance(a) of an investment company for any period shall mean the sum of:

(1) The change in its net asset value per share during such period;

(2) The value of its cash distributions per share accumulated to the end of such period; and

(3) The value of capital gains taxes per share paid or payable on undistributed realized long-term capital gains accumulated to the end of such period; expressed as a percentage of its net asset value per share at the beginning of such period. For this purpose, the value of distributions per share of realized capital gains, of dividends per share paid from investment income and of capital gains taxes per share paid or payable on undistributed realized long-term capital gains shall be treated as reinvested in shares of the investment company at the net asset value per share in effect at the close of business on the record date for the payment of such distributions and dividends and the date on which provision is made for such taxes, after giving effect to such distributions, dividends and taxes.

Investment record(b) of an appropriate index of securities prices for any period shall mean the sum of:

(1) The change in the level of the index during such period; and

(2) The value, computed consistently with the index, of cash distributions made by companies whose securities comprise the index accumulated to the end of such period; expressed as a percentage of the index level at the beginning of such period. For this purpose cash distributions on the securities which comprise the index shall be treated as reinvested in the index at least as frequently as the end of each calendar quarter following the payment of the dividend.

Exhibit IMethod of computing the investment record of the standardpoor'sstock composite index for calendar[ & 500 1971]Quarterly ending—1Index value Quarterly dividend yield-composite index 2Annual percent 314Quarterly percent (⁄ of annual)> Dec. 197092.15 Mar. 1971100.313.10.78 June 197199.73.110.78 Sept. 197198.343.140.79 Dec. 1971102.093.01.75 1 Source: Standard & Poor's Trade and Securities Statistics, Jan. 1972, p. 33. 2Id. See Standard & Poor's Trade and Securities Statistics Security and Price Index Record—1970 Edition, p. 133 for explanation of quarterly dividend yield. 3 Quarterly percentages have been founded to two decimal places.

Change in index value for 1971: 102.09 − 92.15 = 9.94. Accumulated value of dividends for 1971: .0314 × 102.09 = 3.21 .0320 × 93.99 = 3.01 Change in NYSE Composite Index value for 1971: 56.43 − 50.23 = 6.20. Accumulated Value of Dividends of NYSE Composite Index for 1971: .0286 × 56.43 = 1.61 Aggregate value of dividends paid, assuming quarterly reinvestment and computed consistently with the index:(Percent yield as computed above) × (ending index value) = Aggregate value of dividends paidFor 1971:Investment record of Standard & Poor's 500 stock composite index assuming quarterly reinvestment dividends:The same method can be extended to cases where an investment company's fiscal quarters do not coincide with the fiscal quarters of the S & P dividend record or to instances where a “rolling period” is used for performance comparisons as indicated by the following example of the calculation of the investment record of the Standard & Poor's 500 Stock Composite Index for the 12 months ended November 1971:Accumulated value of dividends reinvested:December = 1.0028January-March = 1.0078April-June = 1.0078July-September = 1.00794October-November = 1.0053 Dividend yield:Aggregate value of dividends paid computed consistently with the index:Investment record of the Standard & Poor's 500 Stock Composite Index for the 12 months ended November 30, 1971:Aggregate value of dividends paid on NYSE Composite Index assuming quarterly reinvestment:For 1971:Investment record of the New York Stock Exchange Composite Index assuming quarterly reinvestment of dividends:The same method can be extended to cases where an investment company's fiscal quarters do not coincide with the fiscal quarters of the NYSE dividend record or to instances where a “rolling period” is used for performance comparisons as indicated by the following example of the calculation of the investment record of the NYSE Composite Index for the 12 months ended November 1971:Accumulated value of dividends reinvested:December = 1.0026January-March = 1.0072April-June = 1.0070July-September = 1.00714October-November = 1.0047 Dividend yield:Aggregate value of dividends paid computed consistently with the index: Index value Nov. 30, 197193.99 Index value Nov. 30, 197087.2 Change in index value6.79 Quarter ending—Dividend yield112Rate for each month of quarter (⁄ of annual)> Annual rate14⁄ of annual Dec. 19703.410.850.28 Mar. 19713.10.780.26 June 19713.110.780.26 Sept. 19713.140.790.26 Dec. 19713.010.750.25 Exhibit IIMethod of Computing the Investment Record of the New York Stock Exchange Composite Index for Calendar[ 1971](1)—Quarter ending1(2)—Index value 2(3)—Aggregate market value of shares listed on the NYSE as of end of quarter (billions of dollars) 3(4)—Quarterly value of estimated cash payments of shares listed on the NYSE (millions of dollars) 4(5)—Estimated yield (quarterly percent)> Dec. 197050.23 Mar. 197155.44$709$5,1060.72 June 197155.097104,9610.7 Sept. 197154.337095,0060.71 Dec. 197156.437425,183.70 1 Source: New York Stock Exchange Composite Index as reported daily by the New York Stock Exchange. 2 Source: Monthly Review, New York Stock Exchange. 3 Source: The Exchange, New York Stock Exchange magazine, May, Aug., Nov. 1971 and Feb. 1972 editions. Upon request the Statistics Division of the Research Department of the NYSE will make this figure available within 10 days of the end of each quarter. 4 The ratio of column 4 to column 3. Index value Nov. 30, 197151.84 Index value Nov. 30, 197047.41 Change in index value4.43 Quarter endingDividend yield quarterly percent112Rate for each month of quarter (⁄ of annual)> Dec. 19700.790.26 Mar. 19710.720.24 June 19710.70.23 Sept. 19710.710.24 Dec. 19710.70.23 4 The rate for October and November would be two-thirds of the yield for the quarter ended Sept. 30 (i.e. .667 × .79 = 5269) since the yield for the quarter ended Dec. 31 would not be available as of Nov. 30. 4 The rate for October and November would be two thirds of the yield for the quarter ended September 30 (i.e. .667 × .71 = 4736), since the yield for the quarter ended December 31 would not be available as of November 30. (1.0028 × 1.0078 × 1.0078 × 1.0079 × 1.0053) − 1.00 = .0320 (1.0026 × 1.0072 × 1.0070 × 1.0071 × 1.0047) − 1.00 = .0289

Investment record of the NYSE Composite Index for the 12 months ended November 30, 1971:

.0289 × 51.84 = 1.50

(Secs. 205, 211, 54 Stat. 852, 74 Stat. 887, 15 U.S.C. 80b-205, 80b-211; sec. 25, 84 Stat. 1432, 1433, Pub. L. 91-547)

[37 FR 17468, Aug. 29, 1972]