Handling After-Tax Performance Measurement

The popularity of passive investing strategies among investors is well known, but tracking indices in uncertain markets can leave passive portfolios swinging in the wind. Such environments are primed for active investment managers to outperform since they can make investing moves that most of their passive counterparts cannot.

For example, active investment managers can focus on tax-efficient investment strategies that minimize an investor’s tax liability and maximize after-tax returns, which matters most to holders of taxable accounts. This requires a portfolio accounting platform that supports the use of Separately Managed Accounts (SMAs) and a complementary performance attribution solution that accurately measures the performance of investor accounts on an after-tax basis.

Download this white paper for details on meeting the operational challenges of after-tax strategies and measuring after-tax portfolio returns. These capabilities will go a long way toward differentiating and demonstrating the value of active thinking in a passive world.