Rule 206(4)-1(d)(2)

Performance: standardized 1-, 5-, and 10-year time periods (non-private-fund)

performancetime-periods1-5-10-year

Excerpted verbatim from the rule

An advertisement may not include any performance results of any portfolio (other than performance results of any private fund) or any composite aggregation of related portfolios unless the advertisement includes performance results of the same portfolio or composite aggregation for one-, five-, and ten-year periods, each presented with equal prominence and ending on a date that is no less recent than the most recent calendar year-end. (For portfolios with less than ten years of performance, the period since the portfolio’s inception is used.)

Source: 17 CFR § 275.206(4)-1 on eCFR.

What violations look like

Newsletter

We've never had a down quarter since the strategy launched in early 2020.

Why it's flagged: A start date of "early 2020" coincides with the COVID-low rebound — a period selected to exclude all drawdowns. The rule requires prescribed 1-, 5-, and 10-year (or since-inception) periods, side by side.

Compliant rewrite

Show 1-, 5-, and 10-year (or since-inception) net-of-fees returns side-by-side, ending on the most recent quarter.

Run Rule 206(4)-1(d)(2) on your own copy.

Paste any draft — LinkedIn post, newsletter, website copy — and Safe to Publish flags the Rule 206(4)-1(d)(2) issues with citations to the rule and a suggested rewrite.

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