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!
TSG has consulted to firms across the globe regarding the often complicated and confusing topic of After-tax performance.
Past examples of consulting assignments include:
- After-tax using representative portfolios
- After-tax using composites
- After-tax verification for a proprietary portfolio
- After-tax verification for a mutual fund returns
Contact us today to set-up a no obligation consultation.
Tell us about your consulting needs.
Please answer the questions below, and we will provide you with a detailed response to your consulting query. Or, if you need immediate assistance, please call 732-873-5700.