USIPC After-Tax Performance Standards

The United States Investment Performance Committee (USIPC) After-Tax Performance Standards are applicable for firms that choose to present after-tax performance results under the United States taxation rules for taxable portfolios for investment strategies. Effective 1 January 2011, all firms, whether claiming compliance with the Global Investment Performance Standards (GIPS^®) or not, are encouraged to comply with the USIPC After-Tax Performance Standards and include the disclosure language that the after-tax returns were calculated in accordance with the USIPC After-Tax Performance Standards.

Additionally, for firms that claim compliance with the GIPS standards:

• Beginning 1 January 2011, if after-tax composite performance is shown, it must be presented as supplemental information to a GIPS compliant presentation and will be subject to the requirements and recommendations of the Guidance Statement on the Use of Supplemental Information (PDF).
• After-tax composite performance previously presented for periods prior to 1 January 2011 need not be retroactively changed or restated unless the information is found to be misleading or erroneous according to your firm's GIPS error correction policy.
• If a firm chooses to present after-tax performance of a representative account, it must continue to be presented as supplemental information to a GIPS compliant presentation.

Effective 1 January 2011, the GIPS Executive Committee removed country-specific guidance on taxation issues from the Global Investment Performance Standards (GIPS). Countries were requested to address the calculation and presentation of after-tax performance results separately and independently from the Standards. The United States Investment Performance Committee (USIPC), as the country sponsor for the GIPS standards for the United States, will maintain the USIPC After-Tax Performance Standards covering Guidance on US After-Tax Calculation and Presentation specifically for US-based firms claiming compliance with the GIPS standards.

Prior to 1 January 2011, the GIPS standards include requirements following the Guidance Statement for Country-Specific Taxation Issues (PDF).