{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/320/946/#sec-99-sec-materials","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"320","topic_title":"Investments—Debt Securities","subtopic":"320-946","subtopic_title":"Financial Services—Investment Companies","section":{"number":"S99","label":"SEC 99 SEC Materials","anchor":"sec-99-sec-materials","is_sec":true,"groups":[{"block":null,"heading":"SEC Rules, Regulations, and Interpretations","paragraphs":[{"citation":"320-946-S99-1","para":"S99-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of Regulation S-X Rule 12-12, Investments in Securities of Unaffiliated Issuers (17 CFR 210.12-12). <ul class=\"ul simple\" id=\"d3e611129-123010__GUID-AA1C157C-8ECD-47ED-A741-083EDEDB876C\"><li class=\"li\" id=\"d3e611129-123010__SL6350129-123010\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-9A58B698-62EC-4B0C-96D8-8CF69DD1E21D-low.gif\" altsource=\"GUID-9A58B698-62EC-4B0C-96D8-8CF69DD1E21D-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_12ECE2CF-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Reg. § 210.12-12 Investments in Securities of Unaffiliated Issuers [For management investment companies only] Column A Column B Column C \"Name of issuer and title of issue1,2,3,4\" \"Balance held at close of period. Number of shares-principal amount of bonds and notes7\"\t\"Value of each item at close of period5,6,8,9,10\" 1\t\"Each issue shall be listed separately: Provided, however, that an amount not exceeding five percent of the total of Column C may be listed in one amount as “Miscellaneous securities,” provided the securities so listed are not restricted, have been held for not more than one year prior to the date of the related balance sheet, and have not previously been reported by name to the shareholders of the person for which the schedule is filed or to any exchange, or set forth in any registration statement, application, or annual report or otherwise made available to the public. If any securities are listed as Miscellaneous securities,” briefly explain in a footnote what the term represents.\" 2\t\"Categorize the schedule by (i) the type of investment (such as common stocks, preferred stocks, convertible securities, fixed income securities, government securities, options purchased, warrants, loan participations and assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities, repurchase agreements, other investment companies, and so forth); and (ii) the related industry, country, or geographic region of the investment. Short-term debt instruments (i.e., debt instruments whose maturities or expiration dates at the time of acquisition are one year or less) of the same issuer may be aggregated, in which case the range of interest rates and maturity dates shall be indicated. For issuers of periodic payment plan certificates and unit investment trusts, list separately (i) trust shares in trusts created or serviced by the depositor or sponsor of this trust; (ii) trust shares in other trusts; and (iii) securities of other investment companies. Restricted securities shall not be combined with unrestricted securities of the same issuer. Repurchase agreements shall be stated separately showing for each the name of the party or parties to the agreement, the date of the agreement, the total amount to be received upon repurchase, the repurchase date and description of securities subject to the repurchase agreements.\" 3\t\"For options purchased, all information required by §210.12-13 for options contracts written should be shown. Options on underlying investments where the underlying investment would otherwise be presented in accordance with §§210.12-12, 12-13A, 12-13B, 12-13C, or 12-13D should include the description of the underlying investment as would be required by §§210.12-12, 12-13A, 12-13B, 12-13C, or 12-13D as part of the description of the option.\" 4\t\"Indicate the interest rate or preferential dividend rate and maturity date, as applicable, for preferred stocks, convertible securities, fixed income securities, government securities, loan participations and assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities, repurchase agreements, or other instruments with a stated rate of income. For variable rate securities, indicate a description of the reference rate and spread and: (1) The end of period interest rate or (2) disclose the end of period reference rate for each reference rate described in the Schedule in a note to the Schedule. For securities with payment in kind, disclose the rate paid in kind.\" 5\t\"The subtotals for each category of investments, subdivided both by type of investment and industry, country or geographic region, shall be shown together with their percentage value compared to net assets. (§§210.6-04.19 or 210.6-05.4.) \" 6\tColumn C shall be totaled. The total of Column C shall agree with the correlative amounts shown on the related balance sheet. 7\t\"Indicate by an appropriate symbol each issue of securities which is non-income producing. Evidences of indebtedness and preferred shares may be deemed to be income producing if, on the respective last interest payment date or date for the declaration of dividends prior to the date of the related balance sheet, there was only a partial payment of interest or a declaration of only a partial amount of the dividends payable; in such case, however, each such issue shall be indicated by an appropriate symbol referring to a note to the effect that, on the last interest or dividend date, only partial interest was paid or partial dividends declared. If, on such respective last interest or dividend rate, no interest was paid or no cash or in kind dividends declared, the issue shall not be deemed to be income producing. Common shares shall not be deemed to be income producing unless, during the last year preceding the date of the related balance sheet, there was at least one dividend paid upon such common shares.\" 8\t\"Indicate by an appropriate symbol each issue of restricted securities. State the following in a footnote: (a) as to each such issue (1) acquisition date, (2) carrying value per unit of investment at date of related balance sheet, e.g., a percentage of current market value of unrestricted securities of the same issuer, etc., and (3) the cost of such securities; (b) as to each issue acquired during the year preceding the date of the related balance sheet, the carrying value per unit of investment of unrestricted securities of the same issuer at: (1) The day the purchase price was agreed to and (2) the day on which an enforceable right to acquire such securities was obtained; and (c) the aggregate value of all restricted securities and the percentage which the aggregate value bears to net assets.\" 9\tIndicate by an appropriate symbol each issue of securities whose value was determined using significant unobservable inputs. 10\t\"Indicate by an appropriate symbol each issue of securities held in connection with open put or call option contracts, loans for short sales, or where any portion of the issue is on loan.\" </div></div><div class=\"fig figure fignone\"><div class=\"figcaption\"></div></div></div></li></ul><span class=\"sfragment\" id=\"sfr_12ECE935-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[81 FR 82014, Nov. 18, 2016] </span></span></div> </div>","snippet":"The following is the text of Regulation S-X Rule 12-12, Investments in Securities of Unaffiliated Issuers (17 CFR 210.12-12).\n[81 FR 82014, Nov. 18, 2016]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b770028daa2d1bcd576f33bcb2ce6f6859b4cd62f08b2dfa84a012317da53e1d","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-2","para":"S99-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of Regulation S-X Rule 12-12A, Investments—Securities Sold Short (17 CFR 210.12-12A). <ul class=\"ul simple\" id=\"d3e611173-123010__GUID-DA795287-ADA7-4EFA-9E57-DF78A5E73FB1\"><li class=\"li\" id=\"d3e611173-123010__SL6350130-123010\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-EFDAE82B-43DF-4D11-A34D-B5ABFDF56A39-low.gif\" altsource=\"GUID-EFDAE82B-43DF-4D11-A34D-B5ABFDF56A39-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_12ECF196-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Reg. § 210.12.12A Investments-Securities Sold Short [For management investment companies only] Column A Column B Column C \"Name of issuer and title of issue1,2,3\" \" Balance of short position at close of period (Number of shares)\"\t\"Value of each open short position4,5,6\" 1\tEach issue shall be listed separately. 2\tCategorize the schedule as required by instruction 2 of §210.12-12. 3\t\"Indicate the interest rate or preferential dividend rate and maturity date, as applicable, for preferred stocks, convertible securities, fixed income securities, government securities, loan participations and assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities, repurchase agreements, or other instruments with a stated rate of income. For variable rate securities, indicate a description of the reference rate and spread and: (1) The end of period interest rate or (2) disclose the end of period reference rate for each reference rate described in the Schedule in a note to the Schedule. For securities with payment in kind income, disclose the rate paid in kind.\" 4\t\"The subtotals for each category of investments, subdivided both by type of investment and industry, country, or geographic region, shall be shown together with their percentage value compared to net assets.\" 5\tColumn C shall be totaled. The total of Column C shall agree with the correlative amounts shown on the related balance sheet. 6\tIndicate by an appropriate symbol each issue of securities whose value was determined using significant unobservable inputs. </div></div></div></li></ul><span class=\"sfragment\" id=\"sfr_12ECF441-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[81 FR 82015, Nov. 18, 2016] </span></span></div> </div>","snippet":"The following is the text of Regulation S-X Rule 12-12A, Investments—Securities Sold Short (17 CFR 210.12-12A).\n[81 FR 82015, Nov. 18, 2016]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c0256438fbff4ca6d7756b7ece23743e1f9ae5b9ecac6646159ebe6a15f6b5d","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-3","para":"S99-3","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of Regulation S-X Rule 12-12B, Summary Schedule of Investments in Securities of Unaffiliated Issuers (17 CFR 210.12-12B). <ul class=\"ul simple\" id=\"d3e611193-123010__GUID-C85905A8-9F40-418C-8EC7-836E39BE93CE\"><li class=\"li\" id=\"d3e611193-123010__SL6350131-123010\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-D215BA13-38AE-4EFE-A70F-2530CAA1010F-low.gif\" altsource=\"GUID-D215BA13-38AE-4EFE-A70F-2530CAA1010F-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_12ECFEC4-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Reg. § 210.12-12B Summary Schedule of Investments in Securities of Unaffiliated Issuers Column A Column B Column C Column D \"Name of Issuer and title of issue1,2,3,4,5,6,7,8\" \"Balance held at close of period. Number of shares—principal amount of bonds and notes10 \"\t\"Value of each item at close of period 2,9,11,12,13\"\tPercentage value compared to net assets 1\t\"Categorize the schedule by (a) the type of investment (such as common stocks, preferred stocks, convertible securities, fixed income securities, government securities, options purchased, warrants, loan participations and assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities, repurchase agreements, other investment companies, and so forth); and (b) the related industry, country or geographic region of the investment.\" 2\t\"The subtotals for each category of investments, subdivided both by type of investment and industry, country, or geographic region, shall be shown together with their percentage value compared to net assets.\" 3\t\"Indicate the interest rate or preferential dividend rate and maturity date, as applicable, for preferred stocks, convertible securities, fixed income securities, government securities, loan participations and assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities, repurchase agreements, or other instruments with a stated rate of income. For variable rate securities, indicate a description of the reference rate and spread and: (1) The end of period interest rate or (2) disclose the end of period reference rate for each reference rate described in the Schedule in a note to the Schedule. For securities with payment in kind income, disclose the rate paid in kind.\" 4\t\"Except as provided in note 6, list separately the 50 largest issues and any other issue the value of which exceeded one percent of net asset value of the registrant as of the close of the period. For purposes of the list (including, in the case of short-term debt instruments, the first sentence of note 4), aggregate and treat as a single issue, respectively, (a) short-term debt instruments (i.e., debt instruments whose maturities or expiration dates at the time of acquisition are one year or less) of the same issuer (indicating the range of interest rates and maturity dates); and (b) fully collateralized repurchase agreements (indicate in a footnote the range of dates of the repurchase agreements, the total purchase price of the securities, the total amount to be received upon repurchase, the range of repurchase dates, and description of securities subject to the repurchase agreements). Restricted and unrestricted securities of the same issue should be aggregated for purposes of determining whether the issue is among the 50 largest issues, but should not be combined in the schedule. For purposes of determining whether the value of an issue exceeds one percent of net asset value, aggregate and treat as a single issue all securities of any one issuer, except that all fully collateralized repurchase agreements shall be aggregated and treated as a single issue. The U.S. Treasury and each agency, instrumentality, or corporation, including each government-sponsored entity, that issues U.S. government securities is a separate issuer.\" 5\t\"For options purchased, all information required by §210.12-13 for options contracts written should be shown. Options on underlying investments where the underlying investment would otherwise be presented in accordance with §§210.12-12, 12-13A, 12-13B, 12-13C, or 12-13D should include the description of the underlying investment as would be required by §§210.12-12, 12-13A, 12-13B, 12-13C, or 12-13D as part of the description of the option.\" 6\t\"If multiple securities of an issuer aggregate to greater than one percent of net asset value, list each issue of the issuer separately (including separate listing of restricted and unrestricted securities of the same issue) except that the following may be aggregated and listed as a single issue: (a) Fixed-income securities of the same issuer which are not among the 50 largest issues and whose value does not exceed one percent of net asset value of the registrant as of the close of the period (indicating the range of interest rates and maturity dates); and (b) U.S. government securities of a single agency, instrumentality, or corporation, which are not among the 50 largest issues and whose value does not exceed one percent of net asset value of the registrant as of the close of the period (indicating the range of interest rates and maturity dates). For each category identified pursuant to note 1, group all issues that are neither separately listed nor included in a group of securities that is listed in the aggregate as a single issue in a sub-category labeled “Other securities,” and provide the information for Columns C and D.\" 7\t\"Any securities that would be required to be listed separately or included in a group of securities that is listed in the aggregate as a single issue may be listed in one amount as “Miscellaneous securities,” provided the securities so listed are eligible to be, and are, categorized as “Miscellaneous securities” in the registrant's Schedule of Investments in Securities of Unaffiliated Issuers required under §210.12-12. However, if any security that is included in “Miscellaneous securities” would otherwise be required to be included in a group of securities that is listed in the aggregate as a single issue, the remaining securities of that group must nonetheless be listed as required by notes 4 and 5 even if the remaining securities alone would not otherwise be required to be listed in this manner (e.g., because the combined value of the security listed in “Miscellaneous securities” and the remaining securities of the same issuer exceeds one percent of net asset value, but the value of the remaining securities alone does not exceed one percent of net asset value).\" 8\t\"If any securities are listed as “Miscellaneous securities” pursuant to note 6 or “Other securities” pursuant to note 5, briefly explain in a footnote what those terms represent.\" 9\tTotal Column C. The total of Column C should equal the total shown on the related balance sheet for investments in securities of unaffiliated issuers. 10\t\"Indicate by an appropriate symbol each issue of securities which is non-income producing. Evidences of indebtedness and preferred shares may be deemed to be income producing if, on the respective last interest payment date or date for the declaration of dividends prior to the date of the related balance sheet, there was only a partial payment of interest or a declaration of only a partial amount of the dividends payable; in such case, however, each such issue shall be indicated by an appropriate symbol referring to a note to the effect that, on the last interest or dividend date, only partial interest was paid or partial dividends declared. If, on such respective last interest or dividend date, no interest was paid or no cash or in kind dividends declared, the issue shall not be deemed to be income producing. Common shares shall not be deemed to be income producing unless, during the last year preceding the date of the related balance sheet, there was at least one dividend paid upon such common shares.\" 11\t\"Indicate by an appropriate symbol each issue of restricted securities. State the following in a footnote: (a) As to each such issue: (1) Acquisition date, (2) carrying value per unit of investment at date of related balance sheet, e.g., a percentage of current market value of unrestricted securities of the same issuer, etc., and (3) the cost of such securities; (b) as to each issue acquired during the year preceding the date of the related balance sheet, the carrying value per unit of investment of unrestricted securities of the same issuer at: (1) The day the purchase price was agreed to; and (2) the day on which an enforceable right to acquire such securities was obtained; and (c) the aggregate value of all restricted securities and the percentage which the aggregate value bears to net assets.\" 12\tIndicate by an appropriate symbol each issue of securities whose value was determined using significant unobservable inputs. 13\t\"Indicate by an appropriate symbol each issue of securities held in connection with open put or call option contracts, loans for short sales, or where any portion of the issue is on loan.\" </div></div></div></li></ul><span class=\"sfragment\" id=\"sfr_12ED011A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[81 FR 82015, Nov. 18, 2016] </span></span></div> </div>","snippet":"The following is the text of Regulation S-X Rule 12-12B, Summary Schedule of Investments in Securities of Unaffiliated Issuers (17 CFR 210.12-12B).\n[81 FR 82015, Nov. 18, 2016]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:29563e35da6d1a0eb464af7479bdf35a775bdaf52946bba24ca7ceaca05466a6","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-4","para":"S99-4","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of Regulation S-X Rule 12-12C (17 CFR 210.12-12C). <ul class=\"ul simple\" id=\"d3e611221-123010__GUID-601B6B2D-1248-49C8-A63D-C45A4151F5C7\"><li class=\"li\" id=\"d3e611221-123010__SL6350132-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED02A9-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[Reserved]</span></span></div></li></ul></div> </div>","snippet":"The following is the text of Regulation S-X Rule 12-12C (17 CFR 210.12-12C).\n[Reserved]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb5907ff0e165a3feb0601814e3f718fe53228c5d591d5e48974394ff6d67b68","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-5","para":"S99-5","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of Regulation S-X Rule 12-13, Open Option Contracts Written (17 CFR 210.12-13). <ul class=\"ul simple\" id=\"d3e611278-123010__GUID-4BDB2B90-2645-4022-AF95-D39F0F7349F8\"><li class=\"li\" id=\"d3e611278-123010__SL6350133-123010\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-0CC8ED36-1C21-4F4B-A41D-1C3714E8286A-low.gif\" altsource=\"GUID-0CC8ED36-1C21-4F4B-A41D-1C3714E8286A-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_12ED0755-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Reg. § 210.12.13 Open Option Contracts Written [For management investment companies only] Column A Column B Column C\tColumn D\tColumn E\tColumn F\tColumn G \"Description1,2,3\" Counterparty4\tNumber of contracts5\tNotional amount\tExercise price\tExpiration date\t\"Value6,7,8\" 1\tInformation as to put options shall be shown separately from information as to call options. 2\t\"Options where descriptions, counterparties, exercise prices or expiration dates differ shall be listed separately.\" 3\t\"Options on underlying investments where the underlying investment would otherwise be presented in accordance with §§210.12-12, 12-13A, 12-13B, 12-13C, or 12-13D should include the description of the underlying investment as would be required by §§210.12-12, 12-13A, 12-13B, 12-13C, or 12-13D as part of the description of the option. \" \"If the underlying investment is an index or basket of investments, and the components are publicly available on a Web site as of the balance sheet date, identify the index or basket. If the underlying investment is an index or basket of investments, the components are not publicly available on a Web site as of the balance sheet date, and the notional amount of the option contract does not exceed one percent of the net asset value of the registrant as of the close of the period, identify the index or basket. If the underlying investment is an index or basket of investments, the components are not publicly available on a Web site as of the balance sheet date, and the notional amount of the option contract exceeds one percent of the net asset value of the registrant as of the close of the period, provide a description of the index or custom basket and list separately: (i) The 50 largest components in the index or custom basket and (ii) any other components where the notional value for that components exceeds 1% of the notional value of the index or custom basket. For each investment separately listed, include the description of the underlying investment as would be required by §§210.12-12, 12-13, 12-13A, 12-13B, or 12-13D as part of the description, the quantity held (e.g. the number of shares for common stocks, principal amount for fixed income securities), the value at the close of the period, and the percentage value when compared to the custom basket's net assets.\" 4\tNot required for exchange traded or centrally cleared options. 5\t\"If the number of shares subject to option is substituted for number of contracts, the column name shall reflect that change.\" 6\tIndicate by an appropriate symbol each investment which cannot be sold because of restrictions or conditions applicable to the investment. 7\tIndicate by an appropriate symbol each investment whose value was determined using significant unobservable inputs. 8\tColumn G shall be totaled and shall agree with the correlative amount shown on the related balance sheet. </div></div></div></li></ul><span class=\"sfragment\" id=\"sfr_12ED08B0-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[81 FR 82016, Nov. 18, 2016] </span></span></div> </div>","snippet":"The following is the text of Regulation S-X Rule 12-13, Open Option Contracts Written (17 CFR 210.12-13).\n[81 FR 82016, Nov. 18, 2016]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0ef7b5c63a20ea514509f3184368d1ba9426acb46d7b3539da7102c4ec3228c0","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-5A","para":"S99-5A","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of Regulation S-X Rule 12-13A, Open Futures Contracts (17 CFR 210.12-13A).<ul class=\"ul simple\" id=\"SL120429254-123010__GUID-709B9698-6725-4791-BEFA-80EA3A87AD70\"><li class=\"li\" id=\"SL120429254-123010__SL120429256-123010\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-C0871779-2F79-4812-A177-514FE6F10616-low.gif\" altsource=\"GUID-C0871779-2F79-4812-A177-514FE6F10616-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_12ED0D07-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Reg. § 210.12-13A Open Futures Contracts [For management investment companies only] Column A Column B Column C Column D Column E Column F \"Description1,2,3,4,5\" Number of contracts\tExpiration date\tNotional amount6\tValue\tUnrealized appreciation/ depreciation 1\t\"Information as to long purchases of futures contracts shall be shown separately from information as to futures contracts sold short.\" 2\tFutures contracts where descriptions or expiration dates differ shall be listed separately. 3\tDescription should include the name of the reference asset or index. 4\t\"Indicate by an appropriate symbol each investment which cannot be sold because of restrictions or conditions applicable to the investment.\" 5\tIndicate by an appropriate symbol each investment whose value was determined using significant unobservable inputs. 6\tNotional amount shall be the current notional amount at close of period. </div></div></div></li></ul><span class=\"sfragment\" id=\"sfr_12ED0E61-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[81 FR 82017, Nov. 18, 2016] </span></span></div> </div>","snippet":"The following is the text of Regulation S-X Rule 12-13A, Open Futures Contracts (17 CFR 210.12-13A).\n[81 FR 82017, Nov. 18, 2016]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ee91943c9961d593c96feb11c9f872f8e4361e093e228acdf2ce8ae661f994f9","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-5B","para":"S99-5B","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of Regulation S-X Rule 12-13B, Open Forward Foreign Currency Contracts (17 CFR 210.12-13B).<ul class=\"ul simple\" id=\"SL120429257-123010__GUID-1C558D9F-5F4E-4E6B-95A5-A423EE5C848D\"><li class=\"li\" id=\"SL120429257-123010__SL120429259-123010\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-3E70A16F-D28C-42F6-B5CC-BE01036781F1-low.gif\" altsource=\"GUID-3E70A16F-D28C-42F6-B5CC-BE01036781F1-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_12ED1297-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Reg. § 210.12-13B Open Forward Foreign Currency Contracts [For management investment companies only] Column A Column B Column C Column D Column E Amount and description of currency to be purchased1 Amount and description of currency to be sold1\tCounterparty\tSettlement date\t\"Unrealized appreciation/ depreciation2,3,4\" 1\t\"Forward foreign currency contracts where description of currency purchased, description of currency sold, counterparty, or settlement dates differ shall be listed separately.\" 2\t\"Indicate by an appropriate symbol each investment which cannot be sold because of restrictions or conditions applicable to the investment.\" 3\t\"Indicate by an appropriate symbol each investment whose value was determined using significant unobservable inputs.\" 4\t\"Column E shall be totaled and shall agree with the total of correlative amount(s) shown on the related balance sheet.\" </div></div></div></li></ul><span class=\"sfragment\" id=\"sfr_12ED1433-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[81 FR 82017, Nov. 18, 2016] </span></span></div> </div>","snippet":"The following is the text of Regulation S-X Rule 12-13B, Open Forward Foreign Currency Contracts (17 CFR 210.12-13B).\n[81 FR 82017, Nov. 18, 2016]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5a2794ee4d975bcba8ad1c7b5b103cbdd49fab34853697747ecc4ed5d403c120","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-5C","para":"S99-5C","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of Regulation S-X Rule 12-13C, Open Swap Contracts (17 CFR 210.12-13C). <ul class=\"ul simple\" id=\"SL120429260-123010__GUID-A01F251E-0B6A-48A3-A056-F01F7B85174B\"><li class=\"li\" id=\"SL120429260-123010__SL120429262-123010\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-1201EC21-4263-4EDF-BFF8-DA299C9F3A4F-low.gif\" altsource=\"GUID-1201EC21-4263-4EDF-BFF8-DA299C9F3A4F-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_12ED18A0-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Reg. § 210.12-13C Open Swap Contracts [For management investment companies only] Column A Column B Column C Column D Column E\tColumn F\tColumn G\tColumn H \"Description and terms of payments to be received from another party1,2,3\" \"Description and terms of payments to be paid to another party1,2,3\"\tCounterparty4\tMaturity date\tNotional amount\tValue\t\"Upfront payments/ receipts\"\t\"Unrealized appreciation/ depreciation5,6,7\" 1\t\"List each major category of swaps by descriptive title (e.g., credit default swaps, interest rate swaps, total return swaps). Credit default swaps where protection is sold shall be listed separately from credit default swaps where protection is purchased.\" 2\t\"Swaps where description, counterparty, or maturity dates differ shall be listed separately within each major category.\" 3\t\"Description should include information sufficient for a user of financial information to understand the terms of payments to be received and paid. (e.g. For a credit default swap, including, among other things, description of reference obligation(s) or index, financing rate to be paid or received, and payment frequency. For an interest rate swap, this may include, among other things, whether floating rate is paid or received, fixed interest rate, floating interest rate, and payment frequency. For a total return swap, this may include, among other things, description of reference asset(s) or index, financing rate, and payment frequency.) If the reference instrument is an index or basket of investments, and the components are publicly available on a Web site as of the balance sheet date, identify the index or basket. If the reference instrument is an index or basket of investments, the components are not publicly available on a Web site as of the balance sheet date, and the notional amount of the swap contract does not exceed one percent of the net asset value of the registrant as of the close of the period, identify the index or basket. If the reference instrument is an index or basket of investments, the components are not publicly available on a Web site as of the balance sheet date, and the notional amount of the swap contract exceeds one percent of the net asset value of the registrant as of the close of the period provide a description of the index or custom basket and list separately: (i) The 50 largest components in the index or custom basket and (ii) any other components where the notional value for that components exceeds 1% of the notional value of the index or custom basket. For each investment separately listed, include the description of the underlying investment as would be required by §§210.12-12, 210.12-13, 210.12-13A, 210.12-13B, or 210.12-13D as part of the description, the quantity held (e.g., the number of shares for common stocks, principal amount for fixed income securities), the value at the close of the period, and the percentage value when compared to the custom basket's net assets.\" 4\tNot required for exchange-traded or centrally cleared swaps. 5\tIndicate by an appropriate symbol each investment which cannot be sold because of restrictions or conditions applicable to the investment. 6\tIndicate by an appropriate symbol each investment whose value was determined using significant unobservable inputs. 7\tColumns G and H shall be totaled and shall agree with the total of correlative amount(s) shown on the related balance sheet. </div></div></div></li></ul><span class=\"sfragment\" id=\"sfr_12ED19DE-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[81 FR 82017, Nov. 18, 2016] </span></span></div> </div>","snippet":"The following is the text of Regulation S-X Rule 12-13C, Open Swap Contracts (17 CFR 210.12-13C).\n[81 FR 82017, Nov. 18, 2016]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dedc34629300f48a9aa10bfec04a018786d9899749076779ce9d4fcfd3e8ff6f","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-5D","para":"S99-5D","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of Regulation S-X Rule 12-13D, Investments Other Than Those Presented in §§210.12-12, 12-12A, 12-12B, 12-13, 12-13A, 12-13B, and 12-13C (17 CFR 210.12-13D). <ul class=\"ul simple\" id=\"SL120429263-123010__GUID-89981071-F723-49D3-993F-2F71F903DEC2\"><li class=\"li\" id=\"SL120429263-123010__SL120429265-123010\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-631EF1BE-FA45-47C3-8794-3D77A026183C-low.gif\" altsource=\"GUID-631EF1BE-FA45-47C3-8794-3D77A026183C-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_12ED1EB0-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">\"Reg. § 210.12-13D Investments Other Than Those Presented in §§210.12-12, 12-12A, 12-12B, 12-13, 12-13A, 12-13B, and 12-13C\" [For management investment companies only] Column A Column B Column C \"Description1,2,3\" \"Balance held at close of period—quantity4,5\"\t\"Value of each item at close of period6,7,8,9\" 1\tEach investment where any portion of the description differs shall be listed separately. 2\t\"Categorize the schedule by (i) the type of investment (such as real estate, commodities, and so forth); and, as applicable, (ii) the related industry, country, or geographic region of the investment.\" 3\t\"Description should include information sufficient for a user of financial information to understand the nature and terms of the investment, which may include, among other things, reference security, asset or index, currency, geographic location, payment terms, payment rates, call or put feature, exercise price, expiration date, and counterparty for non-exchange-traded investments.\" 4\t\"If practicable, indicate the quantity or measure in appropriate units.\" 5\tIndicate by an appropriate symbol each investment which is non-income producing. 6\tIndicate by an appropriate symbol each investment which cannot be sold because of restrictions or conditions applicable to the investment. 7\tIndicate by an appropriate symbol each investment whose value was determined using significant unobservable inputs. 8\t\"Indicate by an appropriate symbol investment subject to option. State in a footnote: (a) The quantity subject to option, (b) nature of option contract, (c) option price, and (d) dates within which options may be exercised.\" 9\tColumn C shall be totaled and shall agree with the correlative amount shown on the related balance sheet. </div></div></div></li></ul><span class=\"sfragment\" id=\"sfr_12ED2007-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[81 FR 82018, Nov. 18, 2016] </span></span></div> </div>","snippet":"The following is the text of Regulation S-X Rule 12-13D, Investments Other Than Those Presented in §§210.12-12, 12-12A, 12-12B, 12-13, 12-13A, 12-13B, and 12-13C (17 CFR 210.12-13D).\n[81 FR 82018, Nov. 18, 2016]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3777abb71b7e332b8472b823f8a084b7ebdd196bc41a39537bd85add9cc5efd3","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-6","para":"S99-6","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of Regulation S-X Rule 12-14, Investments in and Advances to Affiliates (17 CFR 210.12-14). <ul class=\"ul simple\" id=\"d3e611318-123010__GUID-480502E2-B1F2-492E-B1AE-0B69EDCA1717\"><li class=\"li\" id=\"d3e611318-123010__SL6350134-123010\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-83FD59B5-8AFA-456D-8470-4962A9308B17-low.gif\" altsource=\"GUID-83FD59B5-8AFA-456D-8470-4962A9308B17-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_12ED2435-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Reg. § 210.12-14 Investments in and Advances to Affiliates [For management investment companies only] Column A Column B Column C Column D\tColumn E Column F \"Name of issuer and title of issue or nature of indebtedness1,2,3\" \"Number of shares—principal amount of bonds, notes and other indebtedness held at close of period\"\t\"Net realized gain or loss for the period4,6 \"\t\"Net increase or decrease in unrealized appreciation or depreciation for the period4,6\"\t\"Amount of dividends or interest4,6\" \"Value of each item at close of period5,7,8,9\" \"(Col. 1) Credit to income\"\t\"(Col. 2) Other\" 1\t\"(a) List each issue separately and group (1) investments in majority-owned subsidiaries; (2) other controlled companies; and (3) other affiliates. (b) If during the period there has been any increase or decrease in the amount of investment in and advance to any affiliate, state in a footnote (or if there have been changes to numerous affiliates, in a supplementary schedule) (1) name of each issuer and title of issue or nature of indebtedness; (2) balance at beginning of period; (3) gross additions; (4) gross reductions; (5) balance at close of period as shown in Column F. Include in the footnote or schedule comparable information as to affiliates in which there was an investment at any time during the period even though there was no investment at the close of the period of report. \" 2\tCategorize the schedule as required by instruction 2 of §210.12-12. 3\t\"Indicate the interest rate or preferential dividend rate and maturity date, as applicable, for preferred stocks, convertible securities, fixed income securities, government securities, loan participations and assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities, repurchase agreements, or other instruments with a stated rate of income. For variable rate securities, indicate a description of the reference rate and spread and: (1) The end of period interest rate or (2) disclose the end of period reference rate for each reference rate described in the Schedule in a note to the Schedule. For securities with payment in kind income, disclose the rate paid in kind. \" 4\t\"Columns C, D, E, and F shall be totaled. The totals of Column F shall agree with the correlative amount shown on the related balance sheet.\" 5\t\"(a) Indicate by an appropriate symbol each issue of restricted securities. The information required by instruction 8 of §210.12-12 shall be given in a footnote. (b) Indicate by an appropriate symbol each issue of securities subject to option. The information required by §210.12-13 shall be given in a footnote. \" 6\t\"(a) Include in Column E (1) as to each issue held at the close of the period, the dividends or interest included in caption 1 of the statement of operations. In addition, show as the final item in Column E (1) the aggregate of dividends and interest included in the statement of operations in respect of investments in affiliates not held at the close of the period. The total of this column shall agree with the correlative amount shown on the related statement of operations. (b) Include in Column E (2) all other dividends and interest. Explain in an appropriate footnote the treatment accorded each item. (c) Indicate by an appropriate symbol all non-cash dividends and interest and explain the circumstances in a footnote. (d) Indicate by an appropriate symbol each issue of securities which is non-income producing. Evidences of indebtedness and preferred shares may be deemed to be income producing if, on the respective last interest payment date or date for the declaration of dividends prior to the date of the related balance sheet, there was only a partial payment of interest or a declaration of only a partial amount of the dividends payable; in such case, however, each such issue shall be indicated by an appropriate symbol referring to a note to the effect that, on the last interest or dividend date, only partial interest was paid or partial dividends declared. If, on such respective last interest or dividend date, no interest was paid or no cash or in kind dividends declared, the issue shall not be deemed to be income producing. Common shares shall not be deemed to be income producing unless, during the last year preceding the date of the related balance sheet, there was at least one dividend paid upon such common shares. (e) Include in Column C (1) as to each issue held at the close of the period, the realized gain or loss included in §210.6-07.7 of the statement of operations. In addition, show as the final item in Column C (1) the aggregate of realized gain or loss included in the statement of operations in respect of investments in affiliates not held at the close of the period. The total of this column shall agree with the correlative amount shown on the related statement of operations. (f) Include in Column D (1) as to each issue held at the close of the period, the net increase or decrease in unrealized appreciation or depreciation included in §210.6-07.7 of the statement of operations. In addition, show as the final item in Column D (1) the aggregate of increase or decrease in unrealized appreciation or depreciation included in the statement of operations in respect of investments in affiliates not held at the close of the period. The total of this column shall agree with the correlative amount shown on the related statement of operations.\" 7\t\"The subtotals for each category of investments, subdivided both by type of investment and industry, country, or geographic region, shall be shown together with their percentage value compared to net assets.\" 8\tIndicate by an appropriate symbol each issue of securities whose value was determined using significant unobservable inputs. 9\t\"Indicate by an appropriate symbol each issue of securities held in connection with open put or call option contracts, loans for short sales, or where any portion of the issue is on loan.\" </div></div></div></li></ul><span class=\"sfragment\" id=\"sfr_12ED257B-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[81 FR 82018, Nov. 18, 2016] </span></span></div> </div>","snippet":"The following is the text of Regulation S-X Rule 12-14, Investments in and Advances to Affiliates (17 CFR 210.12-14).\n[81 FR 82018, Nov. 18, 2016]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5dc6e63cf6d8b4db3bdac3bf496791bd909b66ce3e5e8af04ccfda92af2dc370","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-7","para":"S99-7","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of Regulation S-X Rule 12-15, Summary of Investments—Other than Investments in Related Parties (17 CFR 210.12-15). <ul class=\"ul simple\" id=\"d3e611375-123010__GUID-EA8DF0E0-9950-44E6-9AD0-CDF0A090C3FB\"><li class=\"li\" id=\"d3e611375-123010__SL6350135-123010\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-71A3C687-E691-4192-B0F2-979782E100C3-low.gif\" altsource=\"GUID-71A3C687-E691-4192-B0F2-979782E100C3-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_12ED2958-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Reg. § 210.12-15 Summary of Investments-Other than Investments in Related Parties [For insurance companies] Column A Column B Column C Column D Type of investment Cost1 Value Amount at which shown in the balance sheet2 Fixed maturities: Bonds: United States Government and government government agencies and authorities \"States, municipalities and political subdivisions\" Foreign governments Public utilities Convertibles and bonds with warrants attached3 All other corporate bonds Certificates of Deposit Redeemable preferred stock Total fixed maturities Equity securities: Common stocks Public utilities \"Banks, trust and insurance companies\" \"Industrial, miscellaneous and all other\" Nonredeemable preferred stocks Total equity securities Mortgage loans on real estate Real estate 4 Policy loans Other long-term investments Short-term investments Total investments 1\t\"Original cost of equity securities and, as to fixed maturities, original cost reduced by repayments and adjusted for amortization of premiums or accrual of discounts.\" 2\t\"If the amount at which shown in the balance sheet is different from the amount shown in either column B or C, state the reason for such difference. The total of this column should agree with the balance sheet.\" 3\t\"All convertibles and bonds with warrants shall be included in this caption, regardless of issuer.\" 4\tState separately any real estate acquired in satisfaction of debt. </div></div></div></li></ul><span class=\"sfragment\" id=\"sfr_12ED2AE3-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[46 FR 54337, Nov. 2, 1981] </span></span></div> </div>","snippet":"The following is the text of Regulation S-X Rule 12-15, Summary of Investments—Other than Investments in Related Parties (17 CFR 210.12-15).\n[46 FR 54337, Nov. 2, 1981]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ad6211e3fbc55952035b5c3fe148356b899b543b875dcad1a627a898f083e0b","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-8","para":"S99-8","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of Regulation S-X Rule 12-21, Investments in Securities of Unaffiliated Issuers (17 CFR 210.12-21). <ul class=\"ul simple\" id=\"d3e611403-123010__GUID-9AACE849-C2FB-4EAC-8B0B-587AECAF3867\"><li class=\"li\" id=\"d3e611403-123010__SL6350136-123010\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-BFD0D08A-5244-466C-B377-B0A74C563A33-low.gif\" altsource=\"GUID-BFD0D08A-5244-466C-B377-B0A74C563A33-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_12ED2FEB-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Reg. § 210.12-21 Investments in Securities of Unaffiliated Issuers Column A Column B Column C Column D \"Name of issuer and title of issue1\" \"Balance held at close of period. Number of shares—principal amount of bonds and notes2\"\t\"Cost of each item3,4\"\t\"Value of each item at close of period3,5\" 1\t\"(a) The required information is to be given as to all securities held as of the close of the period of report. Each issue shall be listed separately. \" \"(b) Indicate by an appropriate symbol those securities which are non-income-producing securities. Evidences of indebtedness and preferred shares may be deemed to be income-producing if, on the respective last interest payment date or dates for the declaration of dividends prior to the date of the related balance sheet, there was only a partial payment of interest or a declaration of only a partial amount of the dividends payable; in such case, however, each such issue shall be indicated by an appropriate symbol referring to a note to the effect that, on the last interest or dividend date, only partial interest was paid or partial dividends declared. If, on such respective last interest or dividend date, no interest was paid or no dividends declared, the issue shall not be deemed to be income-producing. Common shares shall not be deemed to be income-producing unless, during the last year preceding the date of the related balance sheet, there was at least one dividend paid upon such common shares. List separately (1) bonds; (2) preferred shares; (3) common shares. Within each of these subdivisions classify according to type of business, insofar as practicable: e.g., investment companies, companies, railroads, utilities, banks, insurance companies, or industrials. Give totals for each group, subdivision, and class.\" 2\t\"Indicate any securities subject to option at the end of the most recent period and state in a note the amount subject to option, the option prices, and the dates within which such options may be exercised.\" 3\tColumns C and D shall be totaled. The totals of columns C and D should agree with the correlative amounts required to be shown by the related balance sheet captions. State in a footnote to column C the aggregate cost for Federal income tax purposes. 4\t\"If any investments have been written down or reserved against by such companies pursuant to § 210.6-03(d), indicate each such item by means of an appropriate symbol and explain in a footnote.\" 5\t\"Where value is determined on any other basis than closing prices reported on any national securities exchange, explain such other basis in a footnote.\" </div></div></div></li></ul><span class=\"sfragment\" id=\"sfr_12ED31A8-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[47 FR 56844, Dec. 21, 1982, as amended at 83 FR 50208, Oct. 4, 2018] </span></span></div> </div>","snippet":"The following is the text of Regulation S-X Rule 12-21, Investments in Securities of Unaffiliated Issuers (17 CFR 210.12-21).\n[47 FR 56844, Dec. 21, 1982, as amended at 83 FR 50208, Oct. 4, 2018]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f602d515e026ca406160387360b92a2f10f72e70c4400f952cf60cedd055f944","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-9","para":"S99-9","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of Regulation S-X Rule 12-22, Investments in and Advances to Affiliates and Income Thereon (17 CFR 210.12-22). <ul class=\"ul simple\" id=\"d3e611439-123010__GUID-EF291E49-5546-4F55-A3A5-42A971785416\"><li class=\"li\" id=\"d3e611439-123010__SL6350137-123010\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-88BF9F1E-3C88-4B82-AFB1-C7E6BDF8E02A-low.gif\" altsource=\"GUID-88BF9F1E-3C88-4B82-AFB1-C7E6BDF8E02A-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_12ED3758-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Reg. § 210.12-22 Investment in and Advances to Affiliates and Income Thereon Column A Column B Column C Column D Column E Column F \"Name of issuer and title of issue or amount of indebtedness 1\" \"Balance held at close of period—Number of shares—principal amount of bonds, notes and other indebtedness 2 \"\t\"Cost of each item 3,4\"\t\"Amount at which carried at close of period 4,5 \"\t\"Amount of dividends or interest 4,6 \" \"Amount of equity in net profit and loss for the period 7\" (1)\t(2) Credited to income\tOther 1\t\"(a) The required information is to be given as to all investments in affiliates as of the close of the period. See §§210.6-06(1), 210.6-06(5)(b), 210.6-06(8)(a)(2), and 210.6-06(8)(a)(3). List each issue and group separately (1) investments in majority-owned subsidiaries, segregating subsidiaries consolidated; (2) other controlled companies; and (3) other affiliates. Give totals for each group. If operations of any controlled companies are different in character from those of the registrant, group such affiliates within divisions (1) and (2) by type of activities. (b) Changes during the period. If during the period there has been any increase or decrease in the amount of investment in any affiliate, state in a footnote (or if there have been changes as to numerous affiliates, in a supplementary schedule) (1) name of each issuer and title of issue; (2) balance at beginning of period; (3) gross purchases and additions; (4) gross sales and reductions; (5) balance at close of period as shown in column C. Include in such footnote or schedule comparable information as to affiliates in which there was an investment at any time during the period even though there was no investment in such affiliate as of the close of such period.\" 2\t\"Indicate any securities subject to option at the end of the most recent period and state in a footnote the amount subject to option, the option prices, and the dates within which such options may be exercised.\" 3\t\"If the cost in column C represents other than cash expenditure, explain.\" 4\t\"(a) Columns C, D and E shall be totaled. The totals of columns C and D should agree with correlative amounts required to be shown by the related balance sheet captions. State in a footnote the aggregate cost for Federal income tax purposes. (b) If any investments have been written down or reserved against by such companies pursuant to § 210.6-03(d), indicate each such item by means of an appropriate symbol and explain in a footnote. \" 5\tState the basis of determining the amounts shown in Column D. 6\t\"Show in column E(1) as to each issue held at close of period, the dividends or interest included in caption 1 of the profit and loss or income statement. In addition, show as the final item in column E(1) the aggregate dividends and interest included in the profit and loss or income statement in respect of investments in affiliates not held at the close of the period. The total of this column should agree with the amounts shown under such caption. Include in column E(2) all other dividends and interest. Explain briefly in an appropriate footnote the treatment accorded each item. Identify by an appropriate symbol all non-cash dividends and explain the circumstances in a footnote. See §§ 210.6-06(3)(a)(2), 210.6-03(g), and 210.6-07(1.\" 7\t\"The information required by column F need by furnished only as to controlled companies. The equity in the net profit and loss of each person required to be listed separately shall be computed on an individual basis. In addition, there may be submitted the information required as computed on the basis of the statements of each such person and its subsidiaries consolidated.\" </div></div></div></li></ul><span class=\"sfragment\" id=\"sfr_12ED390F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[59 FR 65637, Dec. 20, 1994, as amended at 83 FR 50208, Oct. 4, 2018] </span></span></div> </div>","snippet":"The following is the text of Regulation S-X Rule 12-22, Investments in and Advances to Affiliates and Income Thereon (17 CFR 210.12-22).\n[59 FR 65637, Dec. 20, 1994, as amended at 83 FR 50208, Oct. 4, 2018]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b1b381603a491eb17e24970d8e3d8e3b3e4c9f43650ecba2794dbd844b18f1a8","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-9A","para":"S99-9A","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of CFRR 404.02, Accounting for Interest Collected on Defaulted Bonds. <ul class=\"ul simple\" id=\"SL6105308-123010__GUID-55B4EBE3-FEE5-486B-B356-906B4E3BE8B0\"><li class=\"li\" id=\"SL6105308-123010__SL6350138-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED3AF2-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 36: </span></span></div></li><li class=\"li\" id=\"SL6105308-123010__SL6350139-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED3CA3-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A question has been raised as to the treatment by an investment company of interest collected on defaulted bonds applicable to a period prior to the date on which such bonds and defaulted interest were acquired. In the particular case an investment company purchased, at a \"flat\" price of $260,000, $1,000,000 principal amount of bonds with attached defaulted interest coupons amounting to $250,000. The company subsequent to the purchase received an interest payment of $40,000 on account of defaulted interest coupons for periods to the purchase. </span></span></div></li><li class=\"li\" id=\"SL6105308-123010__SL6350140-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED3DDD-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Where a purchase is made of defaulted bonds with defaulted interest coupons attached, it is clear that the purchase price covers not only the right to receive the principal of the bond itself, but also the right the receive any payments made on the defaulted interest coupons purchased. Under these circumstances, the price paid cannot be deemed to reflect only the cost of acquisition of the issuer's obligation to pay the principal sum, but must instead be considered to reflect as well the cost of acquisition of the issuer's existing obligation to pay the interest coupons already matured. In the usual case, moreover, there is no satisfactory basis on which to allocate the total price between the bond on the one hand and the defaulted interest coupons on the other. Under such circumstances, the bond and defaulted coupons should be treated as a unit for accounting purposes and collects on account of the defaulted interest coupons should be treated not as interest on the sum invested but rather as repayments thereof. Moreover, in view of the uncertainty of eventually receiving payments in excess of the purchase price, ordinarily no part of any payment, whether on account of principal or the defaulted interest, should be considered as profit until the full purchase price has been recovered. </span></span></div></li><li class=\"li\" id=\"SL6105308-123010__SL6350141-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED3F09-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In the instant case, therefore, the receipt of the $40,000 interest payments should be treated as a reduction of the cost of the investment and not as interest income, or as a profit on the investment. After payments are received on account of the principal and defaulted interest in an amount equal to the purchase price, any further collections thereon should be treated not as interest, but as profit on securities purchased. On the other hand, it seems clear that collection of interest coupons covering periods subsequent to the purchase may be treated as interest income unless the circumstances of a particular case are such as to indicate that, despite the apparent nature of the payment, recovery of the cost of the investment through sale or redemption is so uncertain as to make it necessary to treat the payment as a reduction of the investment. </span></span></div></li></ul></div> </div>","snippet":"The following is the text of CFRR 404.02, Accounting for Interest Collected on Defaulted Bonds.\nASR 36:\nA question has been raised as to the treatment by an investment company of interest collected on defaulted bonds app…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d1b4d0c613fb48dbf3518a2681559a033b84dc91dd61eb7e1c81fb69e083cac","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-10","para":"S99-10","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of CFRR 404.03 Accounting, Valuation and Disclosure of Investment Securities.<ul class=\"ul simple\" id=\"d3e611492-123010__GUID-373851CA-42BD-4DD9-A81E-C95A175E59C9\"><li class=\"li\" id=\"d3e611492-123010__SL6350142-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED4048-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">[The Commission has periodically published its views as to the appropriate method of accounting for and valuation of investment securities of registered investment companies. In addition, the Commission's views have also been published regarding the appropriate disclosure of certain types of investment securities.] </span></span></div></li></ul></div> </div>","snippet":"The following is the text of CFRR 404.03 Accounting, Valuation and Disclosure of Investment Securities.\n[The Commission has periodically published its views as to the appropriate method of accounting for and valuation of…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:812b836ee17addd48267c9fb336201a1516bc255ce662bb6b8f41c85db3f0c78","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-11","para":"S99-11","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of CFRR 404.03.a. General.<ul class=\"ul simple\" id=\"d3e611503-123010__GUID-4499B73B-C471-4012-8217-5F257DD8C633\"><li class=\"li\" id=\"d3e611503-123010__SL6350143-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED417A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 118: </span></span></div></li><li class=\"li\" id=\"d3e611503-123010__SL6350144-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED42A4-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The statement of assets and liabilities of a registered investment company comprises, for the most part, not only investments in securities which are held by a custodian or are on hand, but also frequently includes securities as to which contracts to purchase have been entered into but which have not been received. Securities held by a custodian or on hand that have been contracted to be sold are excluded from the investments in such statement. In the ordinary transaction through a broker, recording the transaction on the date the broker advised the investment company that the securities have been purchased or sold (the \"trade date\"), rather than when delivery is made or due (the \"settlement date\"), is the established and acceptable practice in investment company accounting. </span></span></div></li><li class=\"li\" id=\"d3e611503-123010__SL6350145-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED43CB-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In the case of purchased or sales of securities other than in the usual brokerage transactions, the date on which the investment company obtains an enforceable right to demand the securities or the payment therefor the date the transaction should be recorded is sometimes difficult to determine. When a question arises as to the date an enforceable right is obtained by the investment company, an opinion of legal consent as to when the right occurred should normally be obtained by the company's management and made available to the independent accountant. Such an opinion should be in writing, and a copy should be included in the accountant's working papers. </span></span></div></li><li class=\"li\" id=\"d3e611503-123010__SL6350146-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED4594-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Where the propriety or validity of an investment in a security by an investment company is questionable because of particular provisions or the Investment Company Act, or state law, or the company's investment policy or other representations as stated in its filings with the Commission, or legal obligations in respect of a contract or transaction, a written opinion of legal counsel should also be obtained by the company's management, made available to the independent accountant, and a copy included in the working papers. </span></span><span class=\"sfragment\" id=\"sfr_12ED4704-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the questions of propriety or validity are not satisfactorily resolved, the circumstances of the investment should be disclosed in the financial statements or notes thereto. </span></span></div></li><li class=\"li\" id=\"d3e611503-123010__SL6350147-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED483A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Securities held by the company or its custodian should be substantiated by the company's independent accountant in the course of an audit by inspection of such securities in custody pursuant to Section 17(f) of the Investment Company Act. When securities contracted to be purchased but not yet received are included in the statement of assets and liabilities, confirmation of the contract to purchase should be obtained from the bank, broker, or other person responsible for the delivery of such securities. Where satisfactory confirmation has been received, audit procedures normally need not be extended to obtain evidence of subsequent receipt of the securities by the company or its custodian unless additional substantiation is considered necessary by the independent accountant under the circumstances. Where satisfactory confirmation has not been received, subsequent receipt of such securities should be substantiated by other appropriate procedures. </span></span></div></li><li class=\"li\" id=\"d3e611503-123010__SL6350148-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED4961-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In accordance with Section 30(e) of the Investment Company Act, the certificate of the company's independent accountant should include a brief statement concerning the substantiation of securities owned. Except for securities contracted to be purchased but not received, the certificate should state that the securities were either inspected by the independent accountant or, where the company's securities were maintained in custody pursuant to Section 17(f) of the Investment Company Act, were confirmed to him by the custodian. In the case of securities contracted to be purchased but not received by the company or its custodian, reference should be made to confirmation by banks, brokers, or others or to alternative procedures, as appropriate in the circumstances. </span></span></div></li></ul></div> </div>","snippet":"The following is the text of CFRR 404.03.a. General.\nASR 118:\nThe statement of assets and liabilities of a registered investment company comprises, for the most part, not only investments in securities which are held by …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:908819ba8ae2f901cab22739668f28d4d192ae3bc304d8760ff85601961cdc1d","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-12","para":"S99-12","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of CFRR 404.03.b. Valuation of Securities.<ul class=\"ul simple\" id=\"d3e611534-123010__GUID-4F724B2C-6297-4076-B0B6-008FDB5B419C\"><li class=\"li\" id=\"d3e611534-123010__SL6350149-123010\"><div class=\"p\">i. Introduction</div></li><li class=\"li\" id=\"d3e611534-123010__SL6350150-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED4A9A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 118: </span></span></div></li><li class=\"li\" id=\"d3e611534-123010__SL6350151-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED4BC7-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Under Article 6 of Regulation S-X, the statement of assets and liabilities of open-end investment companies must reflect all assets at value, showing cost parenthetically, while closed-end companies may elect to use either this basis or to reflect all assets at cost, showing value parenthetically. </span></span></div></li><li class=\"li\" id=\"d3e611534-123010__SL6350152-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED4CEA-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">\"Value\" is defined in Section 2(a)(41) of the Investment Company Act. For purposed of determining the amounts at which securities and other assets are carried in the statements of assets and liabilities included in annual and other reports and in registration statements filed by investment companies, \"value\" is defined in pertinent part as: \"(I) with respect to securities for which market quotations are readily available, the market value of such securities; and (ii) with respect to other securities and assets, fair value as determined in good faith by the board of directors....\" This definition is also used in Rule 2a-4 under the Investment Company Act as the required basis for computing periodically the current net asset value of redeemable securities of investment companies for the purpose of pricing their shares. </span></span></div></li><li class=\"li\" id=\"d3e611534-123010__SL6350153-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED4E96-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In some circumstances value can be determined fairly in more than one way. Hence, the standards set forth below should be considered as guidelines, one or more of which may be appropriate in the circumstances of a particular case. These standards should be followed, and a company's stated valuation policies should be consistent with them. </span></span><span class=\"sfragment\" id=\"sfr_12ED5095-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Any variation from the standards should be disclosed in the financial statements or notes thereto even though the variation is in accordance with the company's stated valuation policy. In addition, any deviation from a stated valuation policy, whether or not in conformity with the standard, should be disclosed in the financial statements or notes thereto. </span></span></div></li><li class=\"li\" id=\"d3e611534-123010__SL6350154-123010\"><div class=\"p\">ii. Securities Listed or Traded on a National Securities Exchange</div></li><li class=\"li\" id=\"d3e611534-123010__SL6350155-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED5267-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 118: </span></span></div></li><li class=\"li\" id=\"d3e611534-123010__SL6350156-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED5488-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Ordinarily, little difficulty should be experienced in valuing securities listed or traded on one or more national securities exchanges, since quotations of completed transaction are published daily. If a security is traded on the valuation date, the last quoted sale price generally is used. In the case of securities listed on more than one national securities exchange the last quoted sale, up to the time of valuation, on the exchange on which the security is principally traded should be used or, if there were no sales on that exchange on the valuation date, the last quoted sale, up to the time of valuation, on the other exchanges should be used. With respect to the time of valuation, Rule 22c-1 under the Investment Company Act specifies the frequency with which current net asset value shall be computed. </span></span></div></li><li class=\"li\" id=\"d3e611534-123010__SL6350157-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED55C1-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If there was no sale on the valuation date but published closing bid and asked prices are available, the valuation in such circumstances should be within the range of these quoted prices. Some companies as a matter of general policy use the bid price, others use the mean of the bid and asked prices, and still others use a valuation within the range considered best to represent values in the circumstances; each of these policies is acceptable if consistently applied. Normally, it is not acceptable to use the asked price alone. Where, on the valuation date, only a bid price or an asked price is quoted or the spread between bid and asked prices is substantial, quotations for several days should be reviewed. If sales have been infrequent or there is a thin market in the security, further consideration should be given to whether \"market quotations are readily available.\" If it is decided that they are not readily available, the alternative method of valuation prescribed by Section 2(a)(41) \"fair value as determined in good faith by the board of directors\" should be used. </span></span></div></li><li class=\"li\" id=\"d3e611534-123010__SL6350158-123010\"><div class=\"p\">iii. Over-the-Counter Securities</div></li><li class=\"li\" id=\"d3e611534-123010__SL6350159-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED571E-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 118: </span></span></div></li><li class=\"li\" id=\"d3e611534-123010__SL6350160-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED5854-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Quotations are available from various sources for most unlisted securities traded regularly in the over-the-counter market. These sources include tabulations in the financial press, publications of the National Quotation Bureau and the \"Blue List\" of municipal bond offerings, several financial reporting services, and individual broker-dealers. These quotations generally are in the form of inter-dealer bid and asked prices. Because of the availability of multiple sources, a company frequently has a greater number of options open to it in valuing securities traded in the over-the-counter market than it does in valuing listed securities. A company may adopt a policy of using a mean of the bid prices, or of the bid and asked prices or of the prices of a representative selection of broker-dealers quoting on a particular security; or it may use a valuation within the range of bid and asked prices considered best to represent value in the circumstances. Any of these policies is acceptable if consistently applies. Normally, the use of asked prices alone is not acceptable. </span></span></div></li><li class=\"li\" id=\"d3e611534-123010__SL6350161-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED596E-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Ordinarily, quotations for a security should be obtained from more than one broker-dealer, particularly if quotations are available only from broker-dealers not known to be established market-makers for that security, and quotations for several days should be reviewed. If the validity of the quotations appears to be questionable, or if the number of quotations is such as to indicate that there is a thin market in the security, further considerations should be given to whether \"market quotations are readily available.\" If it is decided that they are not readily available, the security should be considered one required to be valued at \"fair value as determined in good faith by the board of directors.\" </span></span></div></li><li class=\"li\" id=\"d3e611534-123010__SL6350162-123010\"><div class=\"p\">iv. Securities Value \"in Good Faith\"</div></li><li class=\"li\" id=\"d3e611534-123010__SL6350163-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED5AFF-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 118: </span></span></div></li><li class=\"li\" id=\"d3e611534-123010__SL6350164-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED5C1B-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">To comply with Section 2(a)(41) of the Investment Company Act and Rule 2a-4 under the Investment Company Act, it is incumbent upon the board of directors to satisfy themselves that all appropriate factors relevant to the value of securities for which market quotations are not readily available have been considered and to determine the method of arriving at the fair value of each such security. To the extent considered necessary, the board may appoint persons to assist them in the determination of such value, and to make the actual calculations pursuant to the board's direction. The board must also, consistent with this responsibility, continuously review the appropriateness of the method used in valuing each issue of security in the company's portfolio. The directors must recognize their responsibilities in this matter and whenever technical assistance is requested from individuals who are not directors, the findings of such individuals must be carefully reviewed by the directors in order to satisfy themselves that the resulting valuations are fair. </span></span></div></li><li class=\"li\" id=\"d3e611534-123010__SL6350165-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED5D87-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">No single standard for determining \"fair value... in good faith\" can be laid down, since fair value depends upon the circumstances of each individual case. As a general principle, the current \"fair value\" of an issue of securities being valued by the board of directors would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accord with this principle may, for example, be based on a multiple of earnings, or a discount from market of a similar freely traded security, or yield to maturity with respect to debt issues, or a combination of these and other methods. Some of the general factors which the directors should consider in determining a valuation method for an individual issue of securities include: 1) the fundamental analytical data relating to the investment, 2) the nature and duration of restrictions on disposition of the securities, and 3) an evaluation of the forces which influence the market in which these securities are purchased and sold. Among the more specific factors, which are to be considered are: type of security, financial statements, cost at date of purchase, size of holding, discount from market value of unrestricted securities of the same class at time of purchase, special reports prepared by analysts, information as to any transactions or offers with respect to the security, existence of merger proposals or tender offers affecting the security, price and extent of public trading in similar securities of the issuer or comparable companies, and other relevant matters. </span></span></div></li><li class=\"li\" id=\"d3e611534-123010__SL6350166-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED5EEF-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The above guidance does not purport to delineate all factors which may be considered. The directors should take into consideration all indications of value available to them in determining the \"fair value\" assigned to a particular security. The information so considered together with, to the extent practicable, judgment factors considered by the board of directors in reach its decisions should be documented in the minutes of the director's meetings and the supporting data retained for the inspection of the company's independent accountant. </span></span></div></li></ul></div> </div>","snippet":"The following is the text of CFRR 404.03.b. Valuation of Securities.\ni. Introduction\nASR 118:\nUnder Article 6 of Regulation S-X, the statement of assets and liabilities of open-end investment companies must reflect all a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dda49725d2b9cd56a1f197bb62bd2d514aa62b4435e9e6684b299757b1d97e15","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-13","para":"S99-13","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of CFRR 404.03.c. Auditing Security Valuations.<ul class=\"ul simple\" id=\"d3e611611-123010__GUID-D86B2E28-0251-4F6A-90FA-E62C48F6E104\"><li class=\"li\" id=\"d3e611611-123010__SL6350167-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED6044-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 118: </span></span></div></li><li class=\"li\" id=\"d3e611611-123010__SL6350168-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED6151-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In the case of securities for which market quotations are readily available, the independent accounts should independently verify all the quotations used by the company at the balance sheet date and satisfy himself that such quotations may properly be used under the standards stated above. </span></span></div></li><li class=\"li\" id=\"d3e611611-123010__SL6350169-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED625C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In the case of securities carried at \"fair value\" as determined by the board of directors in \"good faith,\" the accountant does not function as an appraiser and is not expected to substitute his judgment for that of the company's directors; rather, he should review all information considered by the board or by analysts reporting to it, read relevant minutes of directors meetings, and ascertain the procedures followed by the directors. If the accountant is unable to express an unqualified opinion because of the uncertainty inherent in the valuations of the securities based on the directors' subjective judgment, he should nevertheless make appropriate mention in his certificate whether in the circumstances the procedures appear to be reasonable and the underlying documentation appropriate. </span></span></div></li><li class=\"li\" id=\"d3e611611-123010__SL6350170-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED6366-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">When considering values assigned to securities by the company, the independent accountant should consider any investment limitations or conditions on the acquisition or holding of such securities which may be imposed on the company by the Act, by its certificate or by-laws, by contract, or by its filings with the Commission. If such restrictions are met by a narrow margin, the independent accountant may need to exercise extra care in satisfying himself that the evidence indicates that the security valuation determinations were not biased to meet those restrictions. </span></span></div></li></ul></div> </div>","snippet":"The following is the text of CFRR 404.03.c. Auditing Security Valuations.\nASR 118:\nIn the case of securities for which market quotations are readily available, the independent accounts should independently verify all the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8cdb1732f60c2618263e4f7f3d4634486f9727b199687dcbefdd14be4f72a237","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-14","para":"S99-14","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of CFRR 404.03.d. Investments in Affiliates or Affiliated Persons.<ul class=\"ul simple\" id=\"d3e611631-123010__GUID-425C0D61-FDEC-4025-AD22-F9D26AA9E826\"><li class=\"li\" id=\"d3e611631-123010__SL6350171-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED647E-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 118. </span></span></div></li><li class=\"li\" id=\"d3e611631-123010__SL6350172-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED6580-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Various rules of Regulation S-X require that the financial statements of an investment company state separately investments in, investment income from, gain or loss on sales of securities of, and management or other service fees payable to (a) controlled companies and (b) other \"affiliates.\" As stated in Rule 6-02(d) of Regulation S-X, the term \"affiliate\" means and affiliated person as defined in Section 2(a)(3) of the Investment Company Act, and the term \"control\" has the meaning given in Section 2(a)(9) of the Investment Company Act in such a manner as to encompass such control relationships and also the direct or indirect ownership of five percent or more of the outstanding voting securities of any issuer. An affiliated person as there defined also includes any officer, director, partner, copartner, or employee or, with respect to an investment company, any investment adviser or member of an advisory board thereof. </span></span></div></li><li class=\"li\" id=\"d3e611631-123010__SL6350173-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED668A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In ascertaining the existence of any such affiliations, the independent accountant should consider the facts obtained during the course of an audit and also make inquiries of the company's management; and his working papers should include written representations from the management as evidence of such inquiries. The representations should be in the form of a statement that the company, except to the extent indicated, (i) does not own any securities either of persons who are directly affiliated, or, to the best information and belief of management, of person who are indirectly affiliated, (ii) has not received income from or realized gain or loss on sales of investments in or indebtedness of such persons, (iii) has not incurred expenses for management or other service fees payable to such persons, and (iv) has not otherwise engaged in transaction with such persons. Where there is a question as to the existence of an affiliation, a written opinion of legal counsel should be obtained b the company's management, made available to the independent accountant and a copy included in the working papers. Regulation S-X requires disclosure in the financial statements or notes thereto of details of such investments and transactions. </span></span></div></li></ul></div> </div>","snippet":"The following is the text of CFRR 404.03.d. Investments in Affiliates or Affiliated Persons.\nASR 118.\nVarious rules of Regulation S-X require that the financial statements of an investment company state separately invest…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1fd5884346f89585974cb4c8cd705cda22364c35d885205162e7d1188821dd45","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-15","para":"S99-15","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <a href=\"/updates/asu-2010-22/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2010-22</a>.</div> </div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2010-22.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae7fbd057e29b81ab320ff6a68f47a554ac8f991f412c61747c86acff0c4c1ef","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-16","para":"S99-16","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of CFRR 404.04 \"Restricted\" Securities.<ul class=\"ul simple\" id=\"d3e611671-123010__GUID-53221992-12B2-4216-B815-855B55BAC21D\"><li class=\"li\" id=\"d3e611671-123010__SL6350179-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED67E7-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 113: </span></span></div></li><li class=\"li\" id=\"d3e611671-123010__SL6350180-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED6971-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Section 4(2) of the Securities Act exempts from the registration requirements of that Act \"transactions by an issuer not involving any public offering.\" This is the so-called \"private offering\" provision in the Securities Act. The securities involved in transactions effected pursuant to this exemption are referred to as restricted securities because they cannot be resold to the public without prior registration. They are also sometimes referred to as \"investment letter securities\" because of the practice frequently followed by the seller in such a transaction, in order to substantiate the claim that the transaction does not involve a public offering, of requiring that the buyer furnish a so-called \"investment letter\" representing that the purchase is for investment and not for resale to the general public. </span></span></div></li><li class=\"li\" id=\"d3e611671-123010__SL6350181-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED6B05-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The private offering exemption of Section 4(2) of the Securities Act is available only where the offerees do not need the protections afforded by the registration procedure. As the Court of Appeals for the Second Circuit stated in Katz v. Amos Treat &amp; Co., CCH Fed'l. Sec. Law Rep. para. 92,409 (1969): </span></span></div></li><li class=\"li\" id=\"d3e611671-123010__SL6350182-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED6EC4-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Supreme Court has instructed that the applicability of the exemption should turn on whether the particular class of persons affected needs the protection of the Act. SEC V. Ralston Purina Co., 346 U.S. 119, 125 (1953). </span></span></div></li><li class=\"li\" id=\"d3e611671-123010__SL6350183-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED70B4-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The test of the availability of the Section 4(2) exemption is whether the offerees are in such a position with respect to the issuer as to have access to the kind of information that would be made available in a registration statement filed pursuant to the Securities Act. This test is no different when the offeree is an investment company. </span></span></div></li></ul></div> </div>","snippet":"The following is the text of CFRR 404.04 \"Restricted\" Securities.\nASR 113:\nSection 4(2) of the Securities Act exempts from the registration requirements of that Act \"transactions by an issuer not involving any public off…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b687535249fc4f23b406643446a4aeb75bb91fcb5c1f06a0ffb257c562e20d80","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-17","para":"S99-17","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of CFRR 404.04.a. The Problem of Valuation.<ul class=\"ul simple\" id=\"d3e611694-123010__GUID-F9C3075E-4AAB-4261-8D9E-1C2FAD5A6AA9\"><li class=\"li\" id=\"d3e611694-123010__SL6350184-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED7269-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 113: </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350185-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED755E-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">It is critically important that an investment company properly value its portfolio securities. It is obvious, for example, that any distortion in the valuation of a restricted security held by an investment company will distort the price at which the shares of the investment company are sold or redeemed. It is also clear that investment managers who are compensated on the basis of net asset value or performance my be unduly compensated if a restricted security, purchased at a discount from the market quotation for unrestricted securities of the same class, is over-valued. In such a case, investors may also be misled by the reported performance of the investment company. </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350186-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED76FA-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The acquisition of restricted securities by both open-end and closed-end investment companies creates serious problems of valuation. Section 2(a)(41) of the Investment Company Act and Rule 2a-4 thereunder requires that in determining net asset value, \"securities for which market quotations are readily available\" must be valued at current market value while other securities and assets must be valued at \"fair value as determined in good faith by the board of directors.\" </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350187-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED7832-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Readily available market quotations refer to reports of current public quotations for securities similar in all respects to the securities in question. No such current public quotations can exist in the case of restricted securities. For valuation purposes, therefore, restricted securities constitute securities for which market quotations are not readily available. Accordingly, their fair values must be determined in good faith by the board of directors and this obligation necessarily continues throughout the period these securities are retained in the company's portfolio. </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350188-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED7960-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Restricted securities should be included in the portfolio of a company and valued to determine current net asset value on the date that the investment company has an enforceable right to demand the securities from the seller. </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350189-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED7AA6-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Where the investment company negotiates the acquisition of the restricted securities directly with the owner of the securities, there are three significant dates. The first occurs when the investment company and the seller orally agree upon the price and the amount of the securities (the \"handshake date\"). At this point, there would not seem to be any enforceable right of the investment company to demand the securities from the seller since, in most states, particularly those which have adopted the Uniform Commercial Code, there is no enforceable right unless there exists some writing \"sufficient to indicate that a contract has been made for sale of a stated quantity of described securities as a defined or stated price\" (Section 8-319(a) of the Uniform Commercial Code). If the terms of the oral understanding do not contemplate compliance with any condition by the seller, it is suggested that the investment company procure, from the seller, a signed memorandum setting forth the price and quantity of securities to be sold. Upon receipt of that memorandum and enforceable right would be obtained. The securities should be valued as of that date. </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350190-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED7BE0-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In those situations where the oral understanding contemplates the execution of a formal contract of purchase and sale, no enforceable right exists until the time the formal contract is signed (the \"contract date\"). If the formal contract does not require compliance with any conditions by the seller, an enforceable right is then obtained, and the securities should be valued as of that date. </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350191-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED7D1B-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Where the formal contract requires compliance with stated conditions which the investment company believes should not be waived, no enforceable right is obtained until the stated conditions are satisfied. In that situation, the valuation date should be the date upon which the conditions are satisfied. (the \"closing date\"). </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350192-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED7E86-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Restricted securities are often purchased at a discount, frequently substantial, from the market price of outstanding unrestricted securities of the same class. This reflects the fact that securities which cannot be readily sold in the public market place are less valuable than securities which can be sold, and also the fact that, by the direct sale of restricted securities, sellers avoid the expense, time and public disclosure which registration entails. </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350193-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED7FBD-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">As a general principle, the current fair value of restricted securities would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. This depends upon their inherent worth, without regard to the restrictive feature, adjusted for any diminution in value resulting from the restrictive feature. Consequently, the valuation of restricted securities at the market quotations for unrestricted securities of the same class would, except for most unusual situations, be improper. Further, the continued valuation of such securities at cost would be improper if, as a result of the operation of the issuer, change in general market conditions or otherwise, cost has ceased; to represent fair market value. In such circumstances, maintaining the value of the restricted securities at cost would mislead investors as the value of the portfolio of the investment company which holds restricted securities. </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350194-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED80EC-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Instead of valuing restricted securities at cost or at the market value of unrestricted securities of the same class, some investment companies valued restricted securities held in the portfolio by applying either a constant percentage or an absolute dollar discount to the market quotation for unrestricted securities of the same class. The automatic valuation of restricted securities by such a method, however, would also not appear to satisfy the requirement of the Investment Company Act that each security, for which a market quotation is not readily available, be valued at fair value as determined in good faith by the board of directors. </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350195-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED8256-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Thus, it would be improper in valuing restricted securities automatically to maintain the same percentage discount (from the market quotation for unrestricted securities of the same class) that was received when the restricted securities were purchased, without regard to other relevant factors such as, for example, the extent to which the inherent value of the securities may have changed. </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350196-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED834F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Furthermore, the valuation of restricted securities by reference to the market price for unrestricted securities of the same class assumes that the market price for unrestricted securities of the same class is representative of the fair value of the securities. This may not be the case when the market for the unrestricted securities is very thin, i.e., only a limited volume of shares are available for trading. With a thin market, the news of the investment company's purchase of the restricted securities may, by itself, have the effect of stimulating a public demand for the unrestricted securities, the supply of which has not been increased, and thus lead to a spiralling increase in the valuation of both the restricted and unrestricted securities. </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350197-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED8449-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Moreover, if in valuing restricted securities, the diminution in value attributable to the restrictive feature is itself affected by factors subject to change, such as the length of time which must elapse before the investment company may require the issuers to cause the securities to be registered for public sale, the valuation should reflect any such changes. </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350198-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED853B-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Some companies value restricted securities, acquired at prices below the market quotations for unrestricted securities of the same class, by automatically amortizing the difference over some chosen period on the assumption that it will be possible to sell them at the market price for unrestricted securities at the expiration of the time period. Under prevailing conditions, however, it cannot always be determined either that the securities will, in fact, be effectively registered at the expiration of that period or that their public sale will otherwise be possible. For example, the issuer may be unable or unwilling to register at the expiration of the estimated period, and public sale at the end of that period without registration may not be lawful. Consequently, the practice of automatically amortizing the discount over an arbitrarily chosen period creates the appearance of an appreciation in the value of the securities which has not, in fact occurred, and, accordingly, is improper. </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350199-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED862C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An undertaking by the issuer to register the securities within a specified time period would not dictate a different result. In view of the many factors that may alter the date of the proposed public offering, it is at best speculative to use such an undertaking alone as the basis for amortizing the discount. </span></span></div></li><li class=\"li\" id=\"d3e611694-123010__SL6350200-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED8745-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In summary, there can be no automatic formula by which an investment company can value restricted securities in its portfolio to comply with Section 2(a)(41) and Rule 2a-4. It is the responsibility of the board of directors to determine the fair value of each issue of restricted securities in good faith; and the data and information considered and the analysis thereof should be retained for inspection by the company's independent auditors. While the board may, consistent with this responsibility, determine the method of valuing each issue of restricted security in the company's portfolio, it must continuously review the appropriateness of any method so determined. The actual calculations may be made by persons acting pursuant to the direction of the board. </span></span></div></li></ul></div> </div>","snippet":"The following is the text of CFRR 404.04.a. The Problem of Valuation.\nASR 113:\nIt is critically important that an investment company properly value its portfolio securities. It is obvious, for example, that any distortio…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c52a4a1e5cd3e9261faeba32ca095a2e2886afe137f9fe07f72c149af4a3dcf6","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-18","para":"S99-18","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of CFRR 404.04.b. The Problem of Portfolio Management.<ul class=\"ul simple\" id=\"d3e611765-123010__GUID-730AF9F4-76C8-4944-A835-2F631DCF9029\"><li class=\"li\" id=\"d3e611765-123010__SL6350201-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED883F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 113: </span></span></div></li><li class=\"li\" id=\"d3e611765-123010__SL6350202-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED892D-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In addition to valuation, restricted securities present special problems of portfolio management. </span></span></div></li><li class=\"li\" id=\"d3e611765-123010__SL6350203-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED8A43-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The concept of the Securities Act exemption of a private placement of securities is premised on the belief that in such a situation the investor has such information concerning the issuer that he is able to fend for himself without need for the disclosures that would be provided by an effective registration statement. Correlatively, where the investor is a registered investment company, it would seem to be the fiduciary duty of the persons responsible for the investment decisions of the investment company to obtain, prior to purchase, the necessary information to make an independent analysis of the investment merits of the particular restricted securities. Also, in order to enable the continuing valuation of such securities, the investment company should require the seller to undertake to provide, to the extent known to the seller, information on a continuing basis as to any subsequent private sales of the issuer's securities. The investment company should also assure itself that it is in the position to obtain the appropriate financial information at appropriate times. It is assumed that any public disclosures, such as that made in periodic reports filed pursuant to the Exchange Act, are carefully considered by the investment company portfolio manager. </span></span></div></li><li class=\"li\" id=\"d3e611765-123010__SL6350204-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED8B65-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">There is also the paradox of too much success to consider. For example, if restricted securities rapidly appreciate in value, perhaps because of an improvement in the business of the issuer, an investment company may find instead of having, for example, 5 percent of its assets invested in a particular company, it has instead, 25 percent of its assets in that company. The investment company to which this happens suffers a loss in diversification and may find that it has become overly sensitive to any adverse developments in the affairs of that particular portfolio company. </span></span></div></li><li class=\"li\" id=\"d3e611765-123010__SL6350205-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED8CA9-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The foregoing factors in portfolio management relate to both open-end and closed-end management companies. There are additional special factors that relate only to open-end companies. </span></span></div></li><li class=\"li\" id=\"d3e611765-123010__SL6350206-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED8D98-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Section 2(a)(32), when read together with Section 5(a), of the Investment Company Act requires that the holders of redeemable shares issued by an open-end investment company be entitled to receive approximately their proportionate share of the issuer's current net assets, or the cash equivalent thereof, upon presentation of the security to the issuer or to a person designated by the issuer. Section 22(e) of the Investment Company Act provide that, absent specified unusual conditions, payment of the redemption price must be made within seven days after the tender of a redeemable security to an investment company or its agent designated for that purpose. </span></span></div></li><li class=\"li\" id=\"d3e611765-123010__SL6350207-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED8E88-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">It is desirable that an open-end company retains maximum flexibility in the choice of portfolio securities which, on the basis of their relative investment merits, could best be sold where necessary to meet redemptions. To the extent that the portfolio consists of restricted securities, this flexibility is reduced. </span></span></div></li><li class=\"li\" id=\"d3e611765-123010__SL6350208-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED8F74-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Restricted securities may not be publicly sold-nor can they be distributed to redeeming shareholders as an in-kind redemption. While they may be sold privately, there may not be sufficient time to obtain the best price since the date of payment or satisfaction may not be postponed more than seven days after the tender of the company's redeemable securities for redemption. A private sale within that period may result in the investment company receiving less that its carrying value of the restricted securities. This would result in a preference in favor of the redeeming shareholders and a diminution of the net asset value per share of shareholders who have not redeemed. Therefore, instead of arranging a private sale of restricted securities, an open-end company that is faced with redemptions may decide to sell unrestricted securities which it would otherwise have retained on the basis of comparative investment merit. </span></span></div></li><li class=\"li\" id=\"d3e611765-123010__SL6350209-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED9065-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Significant holdings of restricted securities not only magnify the valuation difficulties but may also present serious liquidity questions. Because open-end companies hold themselves out at all times as being prepared to meet redemptions within seven days, it is essential that such companies maintain a portfolio of investments that enable them to fulfill that obligation. This requires a high degree of liquidity in the assets of open-end companies because the extent of the redemption demands or other exigencies are not always predictable. The Commission is of the view that a prudent limit on any open-end company's acquisition of restricted securities, or other assets not having readily available market quotations, would be 10 percent. When as a result of either the increase in the value of some or all of the restricted securities held, or the diminution in the value of unrestricted securities in the portfolios, the restricted securities come to represent a larger percentage of the value of the company's net assets, the same valuation and liquidity questions occur. Accordingly, if the fair value of restricted holdings increases beyond 10 percent, it would be desirable for the open-end company to consider appropriate steps to protect maximum flexibility. The Commission will re-examine appropriate limitations in this area in light of all the policy objectives of the Investment Company Act. </span></span></div></li></ul></div> </div>","snippet":"The following is the text of CFRR 404.04.b. The Problem of Portfolio Management.\nASR 113:\nIn addition to valuation, restricted securities present special problems of portfolio management.\nThe concept of the Securities Ac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7bf1067f992ac9fe7aa748b909efbebe0f1c63d45b2114cc03ffcba9f98b6479","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-19","para":"S99-19","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of CFRR 404.04.c. The Problem of Disclosure.<ul class=\"ul simple\" id=\"d3e611800-123010__GUID-4E3CE5E5-A8FC-4D9D-B152-61F2CCEC9FD1\"><li class=\"li\" id=\"d3e611800-123010__SL6350210-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED9162-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 113: </span></span></div></li><li class=\"li\" id=\"d3e611800-123010__SL6350211-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED924A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Section 8(b)(1)(D) of the Investment Company Act requires that an investment company include, in its registration statement filed with the Commission under the Investment Company Act, information as to its policy with respect to \"engaging in the business of underwriting securities issued by other persons.\" Item 5(b)(4) of Form N-1 and Item 7(b)(4) of Form N-2 require that a registrant under the Act describe its policy or proposed policy with respect to \"the underwriting of securities of other issuers.\" In response to this item, registrant's policy with respect to the acquisition of restricted securities should be disclosed. In view of the fact that policies listed under these items are fundamental policies which cannot be changed without prior shareholder approval, the importance of adopting a clear policy with regard to such investments is apparent. </span></span></div></li><li class=\"li\" id=\"d3e611800-123010__SL6350212-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED942E-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The prospectus of a registered investment company should also fully disclose the company's policy with respect to restricted securities. It is also clear that an investment company which has a policy of acquiring restricted securities is responsible for full and adequate disclosure with respect to all matters relating to the valuation of such securities. Specifically, there should be included, in a note to the financial statements, (1) identification of any restricted securities and the date of acquisition, (2) disclosure of the methods used in valuing such securities both at the date of acquisition and the date of the financial statements, (3) disclosure of the cost of such securities and the market quotation for unrestricted securities of the same class both on the day the purchase price was agreed to (the so-called \"hand-shake date\"), and on the day the investment company first obtained and enforceable right to acquire such securities, and (4) a statement as to whether the issuer or the registrant will bear costs, including those involved in registration under the Securities Act, in connection with the disposition of such securities. </span></span></div></li><li class=\"li\" id=\"d3e611800-123010__SL6350213-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED954C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Section 10(b) of the Exchange Act and Rule 10b-5 thereunder makes it unlawful, among other things, for any person, in connection with the purchase or sale of securities, to employ any device, scheme, or artifice to defraud or to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made not misleading, or engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any persons. </span></span></div></li><li class=\"li\" id=\"d3e611800-123010__SL6350214-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED963B-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The offering price of securities issued by a management investment company is premised upon the net asset value of such shares as determined pursuant to Section 2(a)(41) of the Investment Company Act and Rule 2a-4 thereunder and is so represented in its prospectus. The improper valuation of restricted securities held by such a company would distort the net asset value of the shares being offered or, in the case of an open-end company, redeemed, and would therefore constitute a fraud and deceit within the meaning of Section 10(b) and Rule 10b-5. </span></span></div></li><li class=\"li\" id=\"d3e611800-123010__SL6350215-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED971F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An open-end company, of course, represents to investors, in its prospectus, that it will, as required by Section 22(e) of the Investment Company Act, redeem its securities at approximate net asset value within seven days after tender. To the extent a material percentage of the assets of an open-end company consists of restricted securities which cannot publicly be sold without registration under the Securities Act, the ability of the company to comply with the provisions of the Investment Company Act relating to redemption, and to fulfill the implicit representations made in its prospectus with respect thereto, may be adversely affected. In any such situation, the investment company concerned and the persons responsible for the sale of its securities should give careful consideration to the possible application of the provisions of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. </span></span></div></li></ul></div> </div>","snippet":"The following is the text of CFRR 404.04.c. The Problem of Disclosure.\nASR 113:\nSection 8(b)(1)(D) of the Investment Company Act requires that an investment company include, in its registration statement filed with the C…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:73338de4ffc5091222040011306c7b542804599fb586ce70e4ffb86fc68c0086","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-20","para":"S99-20","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of CFRR 404.05, Money Market Funds.</div> </div>","snippet":"The following is the text of CFRR 404.05, Money Market Funds.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1a4e78fa6cafca4234d39e7de6772083776d81f5071f18bc5f35e3c6373ace7a","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-21","para":"S99-21","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of CFRR 404.05.a., Introduction. <ul class=\"ul simple\" id=\"SL6090600-123010__GUID-9C4DF0A1-77D8-4F56-9120-BE296A3F3BDB\"><li class=\"li\" id=\"SL6090600-123010__SL6350216-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED9819-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 219: </span></span></div></li><li class=\"li\" id=\"SL6090600-123010__SL6350217-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED98FC-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Commission issued an interpretation of a rule adopted under the Investment Company Act indicating, generally, that it shall be considered inappropriate under the provisions of the rule for \"money market\" funds and certain other open-end investment companies to determine the fair value of debt portfolio securities on an amortized cost basis, except in the case of securities with remaining maturities of 60 days or less. </span></span></div></li><li class=\"li\" id=\"SL6090600-123010__SL6350218-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED99DE-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Commission recognized that there had been considerable confusion and uncertainty as to the appropriate methods to be utilized by \"money market\" funds in valuing their portfolio securities. This interpretation should help remove the uncertainty and further the objectives of enabling investors in such funds to: (1) Purchase and redeem their shares at prices appropriately reflecting the current value of fund portfolio securities; (2) be properly credited for any unrealized appreciation or depreciation in such portfolio securities; and (3) be provided with meaningful and comparable information with which to appraise investment returns and the current earning ability of \"money market\" funds. </span></span></div></li></ul></div> </div>","snippet":"The following is the text of CFRR 404.05.a., Introduction.\nASR 219:\nThe Commission issued an interpretation of a rule adopted under the Investment Company Act indicating, generally, that it shall be considered inappropri…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9ea5996cdac0c657daebf8ccf4aef5e2b7c60edff96d5f3fa18d2b77cd8dd8a3","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},{"citation":"320-946-S99-22","para":"S99-22","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of CFRR 404.05.b., Interpretation with Respect to Valuation of Debt Instruments by Money Market Funds and Certain Other Open-End Investment Companies. <sup class=\"ph sup\">FN*</sup><ul class=\"ul simple\" id=\"SL6090602-123010__GUID-665A86F6-2250-4DB0-BFC6-B39290B0F87D\"><li class=\"li\" id=\"SL6090602-123010__SL6350219-123010\"><ul class=\"ul simple\" id=\"SL6090602-123010__GUID-7A1FADCB-B90B-4EA8-90EF-400E7824E62A\"><li class=\"li\" id=\"SL6090602-123010__SL6350220-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED9ACF-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">FN* In Investment Company Release 12206, February 1982, the Commission published for public comment proposed Rule 2a-7 under the Investment Company Act which would permit, under certain conditions, the use of the amortized cost method of asset valuation for purposes of calculating current net asset value per share or the \"penny-rounding\" method of computing current price per share. If adopted, the rule would generally supplement rather than supercede this interpretive guidance. </span></span></div></li></ul></li><li class=\"li\" id=\"SL6090602-123010__SL6350221-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED9BAA-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">ASR 219:</span></span></div></li><li class=\"li\" id=\"SL6090602-123010__SL6350222-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED9C8D-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Commission is aware that many investment companies, including some \"money market\" funds, value short-term debt instruments in their portfolios on an amortized cost basis. Under this method of valuation, investment companies initially value such instruments at their cost on the date of purchase and, if the instrument was purchased at a discount, thereafter assume a constant proportional increase in value until maturity. <sup class=\"ph sup\">FN1</sup></span></span></div><ul class=\"ul simple\" id=\"SL6090602-123010__GUID-1D4A8D23-CF26-4EF4-9FDE-0365A086DCE6\"><li class=\"li\" id=\"SL6090602-123010__SL6350223-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED9D6A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">FN1 In simplified terms, for instruments purchased at a discount, the difference between the cost of such an instrument at purchase and its maturity value is divided by the number of days to maturity and that amount is accrued daily as an increase in the value of the instrument each day. More precisely, amortized cost valuation may be described as cost, adjusted for amortization of premium, or for accretion of discount. </span></span></div></li></ul></li><li class=\"li\" id=\"SL6090602-123010__SL6350224-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED9E49-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">However, during the period a debt security is held, changes in the market rate of interest and other factors may affect the price at which that security could be sold. As a general principle, the longer the remaining maturity of an outstanding debt security, the more that price will be affected by such interest rate changes. </span></span></div></li><li class=\"li\" id=\"SL6090602-123010__SL6350225-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12ED9F6C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Commission is concerned that the use of the amortized cost method in valuing portfolio securities of registered investment companies may result in overvaluation or undervaluation of the portfolios of such companies, relative to the value of the portfolios determined with reference to current market factors. In the case of registered open-end management investment companies (\"mutual funds\" or \"funds\"), this would mean investors purchasing or redeeming shares could pay or receive more or less than the actual value of their proportionate shares of the fund's current net assets. The effect of such sales or redemptions may therefore result in appropriate dilution of the assets and returns of existing shareholders. <sup class=\"ph sup\">FN2</sup></span></span></div><ul class=\"ul simple\" id=\"SL6090602-123010__GUID-DB24614A-9BB1-468A-9677-A50D67F89CB4\"><li class=\"li\" id=\"SL6090602-123010__SL6350226-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDA09F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">FN2 For example, redemptions of shares in a fund which has overvalued its portfolio or sales of shares in a fund which has undervalued its portfolio could result in the dilution of the assets and returns of other investors in the fund. The extent of such dilutive effects would be dependent upon several factors, including the extent of the overvaluation or undervaluation, and the proportion of fund shares sold or redeemed at such times. </span></span></div></li></ul></li><li class=\"li\" id=\"SL6090602-123010__SL6350227-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDA206-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Although inappropriate valuation of securities could cause these effects in various types of funds, the position taken herein is addressed specifically to the case of: (1) \"Money market\" funds, and (2) other open-end investment companies that hold a significant amount of debt securities, such that the use of the amortized cost method in valuing any portion or type of these debt securities could have a material impact on such funds' net asset values per share. Generally, the Commission would consider the use of a particular valuation method to have a material impact if the use of that method, as opposed to another method, might cause a change of at least one cent in a net asset value per share of $10.00. <sup class=\"ph sup\">FN3</sup> The interpretation explained below will be applicable to both \"money market\" funds and these other open-end investment companies. </span></span></div><ul class=\"ul simple\" id=\"SL6090602-123010__GUID-F71352FC-60C8-4413-807E-B3792F06BA15\"><li class=\"li\" id=\"SL6090602-123010__SL6350228-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDA357-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">FN3 Although one cent differences in net asset values per share of $10.00 might appear to be insignificant, the effects of such differences can be material to the decisions of investors when translated into differences in rates of return. Moreover, the inequitable effects of amortized cost valuation can occur in the case of any opened investment company where a significant proportion of a company's portfolio consists of debt securities valued at amortized cost. The extent of such inequitable effects will, of course, depend upon changes in interest rates and the level of a company's sales and redemptions of shares. </span></span></div></li></ul></li><li class=\"li\" id=\"SL6090602-123010__SL6350229-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDA48B-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Generally, \"money market\" funds are open-end investment companies which invest primarily in short-term debt instruments. They provide a vehicle to permit investors to take advantage of what at times may be the higher short-term interest rates earned on large investments. Through a pooling of money these funds enable the purchase of larger denomination instruments than could normally be bought by the individual small investor.. These funds have also attracted investments from corporations, bank trust departments, and other institutional investors. Another characteristic of money market funds is the short-term investment perspective of many shareholders. Although the portfolio composition of \"money market\" funds is variable both in terms of the types of securities purchased and their maturities, the portfolios of such funds typically include U.S. Government and government agency issues, certificates of deposit, banker's acceptances, and commercial paper. </span></span></div></li><li class=\"li\" id=\"SL6090602-123010__SL6350230-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDA59E-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Section 22(c) of the Investment Company Act by reference to section 22(a) of the Investment Company Act, authorizes the Commission to adopt rules prescribing, inter alia, methods for computing the minimum purchase price and maximum redemption price of redeemable securities issued by a registered investment company: </span></span></div><ul class=\"ul simple\" id=\"SL6090602-123010__GUID-979B2D3B-9C6F-446D-84C7-F8A8A4DB49ED\"><li class=\"li\" id=\"SL6090602-123010__SL6350231-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDA693-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">***for the purpose of eliminating or reducing so far as reasonably practicable any dilution of the value of other outstanding securities of such company or any other result of*** purchase, redemption, or sale which is unfair to holders of such other outstanding securities.*** </span></span></div></li></ul></li><li class=\"li\" id=\"SL6090602-123010__SL6350232-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDA782-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Section 2(a)(41) of the Investment Company Act defines \"value\", as here relevant to mean: </span></span></div><ul class=\"ul simple\" id=\"SL6090602-123010__GUID-2FE0AEB5-D08B-4EBF-82EF-00FCA9CF8CA7\"><li class=\"li\" id=\"SL6090602-123010__SL6350233-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDA8D6-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">(B)*** (i) with respect to securities for which market quotations are readily available, the market value of such securities; and</span></span></div></li><li class=\"li\" id=\"SL6090602-123010__SL6350234-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDAA1E-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">(ii) with respect to other securities and assets, fair value as determined in good faith by the [registered investment company's] board of directors ***</span></span></div></li></ul></li><li class=\"li\" id=\"SL6090602-123010__SL6350235-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDAB50-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Rule 2a-4 promulgated under the Investment Company Act provides, in part, that the \"current net asset value\" of a redeemable security issued by a registered investment company used in computing its price, for the purposes of distribution and redemption, means: </span></span></div><ul class=\"ul simple\" id=\"SL6090602-123010__GUID-3328C1D5-3806-41B2-9966-5D32BFE83CEF\"><li class=\"li\" id=\"SL6090602-123010__SL6350236-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDAC45-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">***an amount which reflects calculation*** made substantially in accordance with the following, with estimates used where necessary or appropriate: </span></span></div></li><li class=\"li\" id=\"SL6090602-123010__SL6350237-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDAD2B-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">(1) Portfolio securities with respect to which market quotations are readily available shall be valued at current market value, and other securities*** shall be viewed at fair value as determined in good faith by the board of directors***</span></span></div></li></ul></li><li class=\"li\" id=\"SL6090602-123010__SL6350238-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDAE1A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Now that both the Commission and the money market fund industry have had the benefit of experience with this relatively new investment product, and to help insure that shares of such funds are sold and redeemed at prices reflecting the current market value or fair value of such funds' portfolio securities, the Commission has concluded that it is inconsistent with the provisions of Rule 2a-4 for a money market fund to determine the fair value of debt securities which mature at a date more that 60 days subsequent to the valuation date on an amortized cost basis. </span></span></div></li><li class=\"li\" id=\"SL6090602-123010__SL6350239-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDAF11-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Although debt securities with remaining maturities in excess of 60 days should not be valued at amortized cost, the Commission will not object if the board of directors of a money market fund, in good faith, determines that the fair value of debt securities originally purchased with remaining maturities of 60 days or less shall be their amortized cost value unless the particular circumstances dictate otherwise. <sup class=\"ph sup\">FN4</sup> Nor will the Commission object if, under similar circumstances, the fair value of debt securities originally purchased with maturities in excess of 60 days, but which currently have maturities of 60 days or less, is determined by using amortized cost valuation for the 60 days prior to maturity, such amortization being based upon the market or fair value of the securities on the 61st day prior to maturity. <sup class=\"ph sup\">FN5</sup></span></span></div><ul class=\"ul simple\" id=\"SL6090602-123010__GUID-AE210E81-A0C1-4406-9799-EC53AD891E1A\"><li class=\"li\" id=\"SL6090602-123010__SL6350240-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDAFFF-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">FN4 The fair value of securities with remaining maturities of 60 days or less may not always be accurately reflected through the use of amortized cost valuation, due to an impairment of the creditworthiness of an issuer, or other factors. In such situations, it would appear to be incumbent upon the directors of a fund to recognize such factors and take them into account in determining \"fair value.\" </span></span></div></li><li class=\"li\" id=\"SL6090602-123010__SL6350241-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDB0E0-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">FN5 A fund also may use amortized cost valuation for a period less than 60 days prior to maturity, in which case the principles indicated above would also be applicable. </span></span></div></li></ul></li><li class=\"li\" id=\"SL6090602-123010__SL6350242-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDB207-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Commission believes that money market funds and those other companies to which this interpretation is applicable should value debt securities with greater than 60 days remaining to maturity based upon current market quotations if readily available or, if such quotations are not readily available, in such a manner as to take into account any unrealized appreciation or depreciation due to changes in interest rates and other factors which would influence the current fair values of such securities. <sup class=\"ph sup\">FN6</sup> These methods are sometimes referred to as \"marking to market.\" In determining \"fair value\" by reference to current interest rates and other factors, the board of directors of a money market fund may, of course, utilize whatever method it determines in good faith to be most appropriate. The method utilized could be based in part, for example, upon quotations by dealers or issuers for securities of similar type, quality and maturity. </span></span></div><ul class=\"ul simple\" id=\"SL6090602-123010__GUID-BC0CEC9A-8F6C-4D75-987B-E5698707231A\"><li class=\"li\" id=\"SL6090602-123010__SL6350243-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDB2F4-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">FN6 In ASR 118 [see Section 404.03], the Commission stated that: As a general principle, the current \"fair value\" of an issue of securities being valued by the board of directors would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. In that release, the Commission noted various factors that might be considered in arriving at \"fair value\", which factors included: Yield to maturity with respect to debt issues*** an evaluation of the forces which influence the market in which these securities are purchased and sold*** (and the) price and extent of public trading in similar securities of the issuer or comparable companies, and other relevant matters. </span></span></div></li></ul></li><li class=\"li\" id=\"SL6090602-123010__SL6350244-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDB3DC-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Except in the circumstances delineated above, the Commission believes that, in view of the experience which has been gained with respect to the characteristics of money market funds, the use of the amortized cost method of valuation by a money market fund cannot in the future represent a \"good faith\" effort to determine the \"fair value\" of portfolio securities for purposes of Rule 2a-4; such valuation fails to consider the impact of market factors subsequent to the date a debt security is purchased on the value of such security. Moreover, the probability that amortized cost valuation will not approximate \"fair value\" is progressively greater for securities of increasingly longer maturities. The Commission believes that the use of amortized cost valuation by money market funds in valuing securities with remaining maturities in excess of 60 days is not an appropriate estimate of market value or \"fair value\" and further that, because alternative valuation procedures which consider market factors are available, use of amortized cost valuation under such circumstances as an estimate is not necessary. This standard should help insure that fund shares are sold and redeemed at prices reflecting the appropriate proportionate share of funds' current net assets, and minimize the potential for dilution of the assets and returns of existing shareholders. </span></span></div></li><li class=\"li\" id=\"SL6090602-123010__SL6350245-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDB4B9-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Commission is also of the view that money market fund shareholders should be accurately credited with the effects of any unrealized appreciation or depreciation that may occur when the value of a fund's portfolio fluctuates. If such effects are not reflected in either a fund's net asset value or its distributions to shareholders, as a practical matter the result would be a situation analogous to that which would exist if amortized cost valuation were used, and similar dilutive effects could occur. Such may be the case, for example, where a money market fund \"marks to market,\" but declares a daily dividend of accrued interest income and reflects any remaining unrealized appreciation or depreciation in a \"floating\" net asset value of $1.00 nominal value per share, rounded to the nearest cent. Under these circumstances, unrealized capital changes which could materially affect the value of such fund's portfolio, would ordinarily not be of sufficient magnitude to cause the net asset value to change by one cent. The effects of unrealized appreciation and depreciation in the case of a fund with a \"floating\" $1.00 net asset value per share, would generally appear in the third and fourth decimal places, and when rounded to the third decimal place (i.e., tenths of one cent) would still not have a one cent impact on the net asset value. Moreover, if such a one cent change should occur, dilution may also result, since a relatively small change in net asset value would cause a larger change in the computed net asset value per share due to rounding. For example, if in the type of fund described above the net asset value was calculated accurately to three decimal places and a change in net asset value from $1.004 to $1.006 occurred, such change of $.002 would cause the net asset value, when rounded to the nearest cent, to change by one full cent. </span></span></div></li><li class=\"li\" id=\"SL6090602-123010__SL6350246-123010\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_12EDB596-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">To alleviate these results and insure that shareholders are more properly credited for capital appreciation or depreciation, the Commission believes that any money market fund which reflects capital changes in its net asset value per share should calculate, and utilize for purposes of sales and redemptions, a current net asset value per share with an accuracy of one-tenth of one percent (equivalent to the nearest one cent on a net asset value of $10.00). Any less precise calculation by such a fund might have the effect of masking the impact of changing values of portfolio securities and therefore might not \"reflect\" the funds calculations pertaining to its portfolio valuation as required by Rule 2a-4. </span></span></div></li></ul></div> </div>","snippet":"The following is the text of CFRR 404.05.b., Interpretation with Respect to Valuation of Debt Instruments by Money Market Funds and Certain Other Open-End Investment Companies. FN*\nFN* In Investment Company Release 12206…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5d218927aacf74fbca04259d88d3f3d2e29b5fcd733b949b31bd9963be4390f4","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33a4aad99daf7579d091b28262e3f11ab35bcece4cda02973e2c748dc288027c","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e5a369bf9c1a5829c08227a142c018f778972f34698b037dba9e8c70ab2e8f2","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e5a369bf9c1a5829c08227a142c018f778972f34698b037dba9e8c70ab2e8f2","downloaded_from":"2026-09-09T23:37:20.253Z","last_downloaded_at":"2026-09-09T23:37:20.253Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477271","source_sha256":"2a5aa1739b0ed42de5d38a765b7da432ae76efe24853260c48dddd35e472b0d9"}}