17 CFR 275.205-1 – 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.
Exhibit I
[
| Quarterly ending— | Index value 1 | Quarterly dividend yield-composite index | |
|---|---|---|---|
| Annual percent 2 | Quarterly percent 3 ( | ||
| Dec. 1970 | 92.15 | ||
| Mar. 1971 | 100.31 | 3.10 | 0.78 |
| June 1971 | 99.70 | 3.11 | .78 |
| Sept. 1971 | 98.34 | 3.14 | .79 |
| Dec. 1971 | 102.09 | 3.01 | .75 |
1 Source: Standard & Poor’s Trade and Securities Statistics, Jan. 1972, p. 33.
2
3 Quarterly percentages have been founded to two decimal places.
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 paid
For 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:
| Index value Nov. 30, 1971 | 93.99 |
| Index value Nov. 30, 1970 | 87.20 |
| Change in index value | 6.79 |
| Quarter ending— | Dividend yield | Rate for each month of quarter ( | |
|---|---|---|---|
| Annual rate | |||
| Dec. 1970 | 3.41 | 0.85 | 0.28 |
| Mar. 1971 | 3.10 | .78 | .26 |
| June 1971 | 3.11 | .78 | .26 |
| Sept. 1971 | 3.14 | .79 | .26 |
| Dec. 1971 | 3.01 | .75 | .25 |
Accumulated value of dividends reinvested:
December = 1.0028
January-March = 1.0078
April-June = 1.0078
July-September = 1.0079
October-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:
Exhibit II
[
| (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)> |
|---|---|---|---|---|
| Dec. 1970 | 50.23 | |||
| Mar. 1971 | 55.44 | $709 | $5,106 | 0.72 |
| June 1971 | 55.09 | 710 | 4,961 | .70 |
| Sept. 1971 | 54.33 | 709 | 5,006 | .71 |
| Dec. 1971 | 56.43 | 742 | 5,183 | .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.
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:
| Index value Nov. 30, 1971 | 51.84 |
| Index value Nov. 30, 1970 | 47.41 |
| Change in index value | 4.43 |
| Quarter ending | Dividend yield quarterly percent | Rate for each month of quarter ( |
|---|---|---|
| Dec. 1970 | 0.79 | 0.26 |
| Mar. 1971 | .72 | .24 |
| June 1971 | .70 | .23 |
| Sept. 1971 | .71 | .24 |
| Dec. 1971 | .70 | .23 |
Accumulated value of dividends reinvested:
December = 1.0026
January-March = 1.0072
April-June = 1.0070
July-September = 1.0071
October-November = 1.0047
Dividend yield:
Aggregate value of dividends paid computed consistently with the index:
Investment record of the NYSE Composite Index for the 12 months ended November 30, 1971: