The Listed Investment Companies Association of Australia has adopted the FTSE ASFA Australia after-tax benchmark as its recommended industry standard.
The LICs association has also selected FTSE to provide it with a customised industry-wide after-tax LIC index.
The FTSE ASFA Australia Index Series would be offered to all listed investment companies (LICs) and already has the support of 17 LICs, which represent over $13 billion or 54 per cent of the sector's assets under management.
The index series took into account the accumulated performance of entities within each index, as well as the impact of franking credits, off-market buybacks, capital gains tax and income tax.
The LICs association worked in conjunction with FTSE in the creation of the industry-wide LIC index, which will commence on 1 January 2013.
The index is designed to represent the performance of LICs and comprises 50 LICs listed on the Australian Securities Exchange that have invested directly in Australian and international equities.
The LIC index will also be an after-tax index.
"Taxation and franking credits are vital considerations for every investor in Australia," Whitefield Limited's chief executive, Angus Gluskie, said on behalf of the LIC association.
"The LIC industry is pleased to have the ability to report to investors in a manner which accurately reflects the benefits of franking, as well as the impact of tax on investment transactions within our portfolios," Mr Gluskie said.
"Investors in LICs will have access to a meaningful level of performance reporting that is rarely provided by other managed investments."
