May 22, 1990
TO: INVESTMENT ADVISER MEMBERS NO. 20-90
INVESTMENT ADVISER ASSOCIATE MEMBERS NO. 19-90
RE: REMINDER CONCERNING INVESTMENT ADVISER PERFORMANCE DATA
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As we previously informed you, the Division of Investment
Management has permitted investment advisers to deduct a "model
fee", as opposed to the adviser's actual fee, until May 27, 1990
when advertising performance data. (See Memorandum to Investment
Adviser Associate Members No. 58-89 and Investment Adviser
Members No. 59-89, dated December 11, 1989.) This is to remind
you that beginning on May 27, 1990, any advertisement that
includes performance data must reflect the deduction of the
adviser's actual fee, except that gross performance data may be
presented on a one-on-one basis provided certain conditions are
satisfied. (See Memorandum to Investment Adviser Members No. 42-
88 and Investment Adviser Associate Members No. 43-88, dated
October 3, 1988.) In addition, if the period advertised includes
performance data from before and after May 27, 1990, the adviser
should include appropriate disclosure explaining that the results
reflect both the deduction of a "model fee" and the deduction of
the adviser's actual fee.
Amy B. Rosenblum
Assistant General Counsel