(1) The following assumptions must be made in the calculation of standard performance data of an investment fund:
1. Recurring fees and charges that are payable by all securityholders
(a) are accrued or paid in proportion to the length of the performance measurement period;
(b) if structured in a manner that would result in the performance information being dependent on the size of an investment, are calculated on the basis of an investment equal to the greater of $10,000 or the minimum amount that may be invested; and
(c) if fully negotiable, are calculated on the basis of the average fees paid by accounts of the size referred to in paragraph (b).
2. There are no fees and charges related to specific optional services.
3. All fees and charges payable by the investment fund are accrued or paid.
4. Dividends or distributions by the investment fund are reinvested in the investment fund at the net asset value per security of the investment fund on the reinvestment dates during the performance measurement period.
5. There are no non-recurring fees and charges that are payable by some or all securityholders and no recurring fees and charges that are payable by some but not all securityholders.
6. In the case of a mutual fund, a complete redemption occurs at the end of the performance measurement period so that the ending redeemable value includes elements of return that have been accrued but not yet paid to securityholders.
7. In the case of a non-redeemable investment fund, a complete redemption occurs at the net asset value of one security at the end of the performance measurement period so that the ending redeemable value includes elements of return that have been accrued but not yet paid to securityholders.
(2) The following assumptions must be made in the calculation of standard performance data of an asset allocation service:
1. Fees and charges that are payable by participants in the asset allocation service
(a) are accrued or paid in proportion to the length of the performance measurement period;
(b) if structured in a manner that would result in the performance information being dependent on the size of an investment, are calculated on the basis of an investment equal to the greater of $10,000 or the minimum amount that may be invested; and
(c) if fully negotiable, are calculated on the basis of the average fees paid by accounts of the size referred to in paragraph (b).
2. There are no fees and charges related to specific optional services.
3. The investment strategy recommended by the asset allocation service is utilized for the performance measurement period.
4. Transfer fees are
(a) accrued or paid;
(b) if structured in a manner that would result in the performance information being dependent on the size of an investment, calculated on the basis of an account equal to the greater of $10,000 or the minimum amount that may be invested; and
(c) if the fees and charges are fully negotiable, calculated on the basis of the average fees paid by an account of the size referred to in paragraph (b).
5. A complete redemption occurs at the end of the performance measurement period so that the ending redeemable value includes elements of return that have been accrued but not yet paid to securityholders.
(3) The calculation of standard performance data must be based on actual historical performance and the fees and charges payable by the investment fund and securityholders, or the asset allocation service and participants, in effect during the performance measurement period.