Click to login and read the full article.
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
EMEA: +44 0207 139 1600
Abstract
The authors show that a central manager can improve the trading and tax efficiency of a multimanager portfolio. Active managers of various skill levels are simulated, and historical performance is shown with and without tax management. Using U.S. stock data from 2006 to 2015, the authors find that the after-tax return benefit of tax management ranges from 20 to 120 bps, depending on market environment and skill level—with less benefit for high-excess-return managers and more benefit for lower-excess-return managers.
TOPICS: Portfolio construction, manager selection, financial crises and financial market history
- © 2018 Pageant Media Ltd
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600