Lipper Provides After-Tax Performance Reports On Mutual Funds

by Carla Johnson, Investors Offshore.com

26 October 2001

Lipper, a leading global provider of mutual fund information and analysis has launched a new service offering after-tax fund performance reporting to fund companies, financial planners, brokerages and other clients. Lipper saw the need for after-tax fund reporting after the Securities and Exchange Commission announced that funds would be required to disclose their performance after the effects of taxes.

'Compliance with the complex new regulation promises to be a significant challenge for many fund companies but will allow an important additional fund comparison,' stated Lipper in a press release.

Eric Almquist, Vice President of Institutional Business for Lipper, added: 'While total return will continue as an important measure of fund performance, Lipper's After-Tax Return analysis offers an important new point of comparison, modeling an investor's experience in owning a fund within a taxable account. And by helping fund companies to comply with the regulation, we're allowing them to focus on making money for their investors.'

Lipper says it has been collecting the detailed characterizations of distributions and other taxable events necessary for accurate after-tax performance calculation. Using the actual detailed data avoids making worst-case assumptions that would understate a fund's true after-tax return.

Lipper is a wholly owned subsidiary of Reuters, providing mutual fund data and analysis to fund companies, financial intermediaries, and media organizations. Lipper clients manage in excess of 95 per cent of US fund assets. Founded in 1973 and headquartered in New York, the company tracks 80,000 funds worldwide through its offices in major financial capitals in North America, Europe, and Asia.

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