Multi-Period After-Tax Reporting: A Practical Solution

Abstract

After-tax performance reporting is critical for taxable investors but is unfortunately often overlooked due, in part, to its complexity and lack of offerings in the space. Instead, most performance reporting models available today provide only pre-tax reporting, ignoring the after-tax aspects so relevant for taxable investors. In this article, the authors seek to resolve this issue by proposing an effective and workable after-tax performance report aimed at enhancing wealth preservation and accumulation for taxable investors. They also outline and offer justification for the various choices that are made in their report in the hope that others will not only adopt their proposed solution, but also review, comment, and improve on it.

TOPICS: Wealth management, legal/regulatory/public policy, performance measurement