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Price Performance Measurement Systems, Inc. |
Performance
After Tax |
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Price Performance Management Systems, Inc. (PPMS) was founded in 2001 to provide software and consulting solutions for after-tax investment performance measurement. During the prior decade, Dr. Price had been managing assets and servicing taxable clients for a number of nuclear decommissioning clients of RCM Capital Management. Requests from such clients for a systematic way to compute after-tax performance for their state utility commissions and also to compare after-tax performance across managers led him to propose and co-chair the first AIMR After-Tax Performance Subcommittee in 1994. Presentations across the country following that committee's report led to the recognition that there was interest in software which would enable clients and managers to do such calculations because most of the existing portfolio accounting packages did not include such capability. The company's first product, PPMS Ver. 1.0, was rolled out in 2001, offering an internet-based solution to the computation of performance after taxes. Through the process of working with clients, additional enhancements and functionality were subsequently added to Ver. 2.0 of the application, including historical state tax rates, flexible transaction and valuation maintenance, and the ability to create composites.
AIMR Performance Presentation Standards
The AIMR After-Tax Committee, chaired by Lee N. Price, published guidelines for after-tax
performance calculation and presentation in 1995. No software vendor can claim that their
product is "in compliance with GIPS" because it is really the investment manager's use of the
product that determines whether composites have been ethically and consistently constructed.
However, it is believed that the PPMS software will enable the calculation of individual
portfolio after-tax performance in accordance with these standards. |
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