Calculation and Reporting of After-Tax Performance


Author: Lee N. Price

The investment performance that really matters to a taxable client is what is left after all taxes are paid.  Many managers appreciate this but realize that including the negative impact of forced capital gains realization due to client withdrawals will significantly penalize their average after-tax performance.  The author suggest the creation of after-tax composites by making a critical ajdustment for non-discretionary withdrawals.

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