Are you calculating your after-tax returns properly?

Measuring performance before taxes is pretty straight forward, but when you are measuring after-tax performance there are many factors that come into play.

• Taxes are usually the largest cost of investing
• Pre-tax, we typically consider three types of investor fees/expenses: trading costs, management fees, administrative fees
• Taxes are a fourth category – arguably the most important!
• After-tax returns more accurately reflect the investor’s true realized return
• Consistent with client reporting recommendations
• Goals-based investing
• Increasing investor awareness and demand
• Tax customization is part of value proposition of many separate accounts
• For broadly distributed pooled funds in the USA – it’s the law!