RT Journal Article
SR Electronic
T1 Tax-Aware Investment Management Practice
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 71
OP 88
DO 10.3905/jwm.2009.12.2.071
VO 12
IS 2
A1 Stephen M Horan
A1 David Adler
YR 2009
UL https://pm-research.com/content/12/2/71.abstract
AB The authors examine the tax-aware investment practices of investment managers managing taxable accounts. Their sample of mostly well-experienced CFA charter holders exhibits a high degree of tax awareness in investment practices. Specifically, those managers surveyed adjust clients’ return requirements and expected portfolio returns for taxes. They consider a security’s holding period when making a decision to sell and engage in periodic tax-loss harvesting. Moreover, they consider taxes when making investment selections, allocating assets among different taxable entities and managing multiple managers. In contrast, relatively few managers report portfolio performance on a tax-adjusted basis or present their performance relative to a tax-adjusted benchmark.TOPICS: Wealth management, legal/regulatory/public policy, performance measurement