Common use of Performance Adjustment Rate Clause in Contracts

Performance Adjustment Rate. The performance period equals 36 months, the current month plus the previous 35 months. An adjustment to a class’s monthly Basic Fee will be made by applying the Performance Adjustment Rate to the average net assets of the Fund over the performance period. Except as otherwise provided in sub-paragraph (e) of this paragraph 1, the Performance Adjustment Rate is 0.02% for each percentage point (the performance of the Fund and the Index each being calculated to the nearest 0.01%) that the Fund’s investment performance for the performance period was better or worse than the record of the Index as then constituted. The maximum performance adjustment rate is 0.20%. For purposes of calculating the performance adjustment of the Fund, the Fund’s investment performance will be based on the performance of the retail class. The Fund’s investment performance will be measured by comparing (i) the opening net asset value of one share of the retail class of the Fund on the first business day of the performance period with (ii) the closing net asset value of one share of the retail class of the Fund as of the last business day of such period. In computing the investment performance of the retail class of the Fund and the investment record of the Index, distributions of realized capital gains, 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 and dividends paid out of investment income on the part of the Fund, and all cash distributions of the securities included in the Index, will be treated as reinvested in accordance with Rule 205-1 or any other applicable rules under the Investment Advisers Act of 1940, as the same from time to time may be amended.