{"data":{"id":"us/17-cfr-275.205-1","jurisdiction":"us","citation":"17 CFR 275.205-1","heading":"-1 Definition of “investment performance” of an investment company and “investment record” of an appropriate index of securities prices.","body":"(a) Investment performance of an investment company for any period shall mean the sum of:\n(1) The change in its net asset value per share during such period;\n(2) The value of its cash distributions per share accumulated to the end of such period; and\n(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.\n(b) Investment record of an appropriate index of securities prices for any period shall mean the sum of:\n(1) The change in the level of the index during such period; and\n(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.\nExhibit I\n[Method of computing the investment record of the standard \u0026 poor's 500 stock composite index for calendar 1971]\nQuarterly ending— Index value 1 Quarterly dividend yield-composite index\nAnnual percent 2 Quarterly percent 3 (1⁄4 of annual)\u003e\nDec. 1970 92.15\nMar. 1971 100.31 3.10 0.78\nJune 1971 99.70 3.11 .78\nSept. 1971 98.34 3.14 .79\nDec. 1971 102.09 3.01 .75\n1 Source: Standard \u0026 Poor's Trade and Securities Statistics, Jan. 1972, p. 33.\n2 Id. See Standard \u0026 Poor's Trade and Securities Statistics Security and Price Index Record—1970 Edition, p. 133 for explanation of quarterly dividend yield.\n3 Quarterly percentages have been founded to two decimal places.\nChange in index value for 1971: 102.09 − 92.15 = 9.94.\nAccumulated value of dividends for 1971:\nAggregate value of dividends paid, assuming quarterly reinvestment and computed consistently with the index:\n(Percent yield as computed above) × (ending index value) = Aggregate value of dividends paid\nFor 1971:\n.0314 × 102.09 = 3.21\nInvestment record of Standard \u0026 Poor's 500 stock composite index assuming quarterly reinvestment dividends:\nThe same method can be extended to cases where an investment company's fiscal quarters do not coincide with the fiscal quarters of the S \u0026 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 \u0026 Poor's 500 Stock Composite Index for the 12 months ended November 1971:\nIndex value Nov. 30, 1971 93.99\nIndex value Nov. 30, 1970 87.20\nChange in index value 6.79\nQuarter ending— Dividend yield Rate for each month of quarter (1⁄12 of annual)\u003e\nAnnual rate 1⁄4 of annual\nDec. 1970 3.41 0.85 0.28\nMar. 1971 3.10 .78 .26\nJune 1971 3.11 .78 .26\nSept. 1971 3.14 .79 .26\nDec. 1971 3.01 .75 .25\nAccumulated value of dividends reinvested:\nDecember = 1.0028\nJanuary-March = 1.0078\nApril-June = 1.0078\nJuly-September = 1.0079\nOctober-November = 1.0053 4\nDividend yield:\n(1.0028 × 1.0078 × 1.0078 × 1.0079 × 1.0053) − 1.00 = .0320\nAggregate value of dividends paid computed consistently with the index:\n.0320 × 93.99 = 3.01\nInvestment record of the Standard \u0026 Poor's 500 Stock Composite Index for the 12 months ended November 30, 1971:\nExhibit II\n[Method of Computing the Investment Record of the New York Stock Exchange Composite Index for Calendar 1971]\n(1)—Quarter ending (2)—Index value 1 (3)—Aggregate market value of shares listed on the NYSE as of end of quarter (billions of dollars) 2 (4)—Quarterly value of estimated cash payments of shares listed on the NYSE (millions of dollars) 3 (5)—Estimated yield 4 (quarterly percent)\u003e\nDec. 1970 50.23\nMar. 1971 55.44 $709 $5,106 0.72\nJune 1971 55.09 710 4,961 .70\nSept. 1971 54.33 709 5,006 .71\nDec. 1971 56.43 742 5,183 .70\n1 Source: New York Stock Exchange Composite Index as reported daily by the New York Stock Exchange.\n2 Source: Monthly Review, New York Stock Exchange.\n3 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.\n4 The ratio of column 4 to column 3.\nChange in NYSE Composite Index value for 1971: 56.43 − 50.23 = 6.20.\nAccumulated Value of Dividends of NYSE Composite Index for 1971:\nAggregate value of dividends paid on NYSE Composite Index assuming quarterly reinvestment:\nFor 1971:\n.0286 × 56.43 = 1.61\nInvestment record of the New York Stock Exchange Composite Index assuming quarterly reinvestment of dividends:\nThe 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:\nIndex value Nov. 30, 1971 51.84\nIndex value Nov. 30, 1970 47.41\nChange in index value 4.43\nQuarter ending Dividend yield quarterly percent Rate for each month of quarter (1⁄12 of annual)\u003e\nDec. 1970 0.79 0.26\nMar. 1971 .72 .24\nJune 1971 .70 .23\nSept. 1971 .71 .24\nDec. 1971 .70 .23\nAccumulated value of dividends reinvested:\nDecember = 1.0026\nJanuary-March = 1.0072\nApril-June = 1.0070\nJuly-September = 1.0071\nOctober-November = 1.0047 4\nDividend yield:\n(1.0026 × 1.0072 × 1.0070 × 1.0071 × 1.0047) − 1.00 = .0289\nAggregate value of dividends paid computed consistently with the index:\n.0289 × 51.84 = 1.50\nInvestment record of the NYSE Composite Index for the 12 months ended November 30, 1971:","path":["Title 17—Commodity and Securities Exchanges","CHAPTER II—SECURITIES AND EXCHANGE COMMISSION","PART 275—RULES AND REGULATIONS, INVESTMENT ADVISERS ACT OF 1940"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-17.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:31Z","sha256":"41778496227a1b673d372a7a04b0eabd4af9493011301a7b91d3fe2104e024a0","source_id":"us-cfr","stale":true,"prev":"us/17-cfr-275.204a-1","next":"us/17-cfr-275.205-2"},"notice":"GroundRules: Original legal text. Not legal advice."}