Performance-Based Investment Advisory Fees

The Securities and Exchange Commission ("Commission') intends to issue an order that would adjust for inflation, as appropriate, dollar amount thresholds in the rule under the Investment Advisers Act of 1940 that permits investment advisers to charge performance-based fees to "qualified clients.' Under that rule, an investment adviser may charge performance-based fees if a "qualified client' has a certain minimum net worth or minimum dollar amount of assets under the management of the adviser. The Commission's order would increase, to reflect inflation, the minimum net worth that a "qualified client' must have under the rule. The order would not increase the minimum dollar amount of assets under management.