Rule 205-1
Definition of "Investment Performance" of an Investment Company and "Investment Record" of an Appropriate Index of Securities Prices
(a) "Investment performance" 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.
(b) "Investment record" 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.
