Tax Aware Investment Management: The Essential Guide
That's one reason why tax-aware investment management is essential for building and maintaining wealth.
In this comprehensive, groundbreaking book, Douglas S. Rogers, CFA, explains why many accepted investment strategies and techniques developed for tax-exempt institutional investors don't work for individuals who are subject to taxes. They will end up with substantially lower after-tax returns simply because their portfolios are not structured or managed with tax obligations in mind.
This book shows:
- How to measure and compare the tax-efficiency of mutual funds, hedge funds, and individual investment managers
- How the widely used style-box matrix can prove detrimental to after-tax investment returns
- How to minimize taxes on stock-and-bond portfolios and employ sophisticated strategies for offsetting gains against losses
- How to decide which asset categories should be placed in tax-deferred accounts such as IRAs and which should be placed in regular taxable accounts
- How to incorporate tax-aware techniques and insights into all facets of investment planning, portfolio management, and estate planning
Part One: Evolution of Knowledge Pertaining to Tax-Aware Investment Management.
1 The Evolution of Tax-Aware Investment Management.
2 The Sources and Impact of Taxes on Investment Returns.
3 Seminal Research.
4 The Tax-Aware Practitioner.
5 Creating the Triumvirate of Qualified Professionals.
Part Two: After-Tax Reporting and Measures of Tax Efficiency.
6 Mutual Fund After-Tax Reporting.
7 Separate Account After-Tax Reporting.
8 Measures of Tax Efficiency.
Part Three: Tax-Aware Portfolio Management.
9 Outperforming the Index Fund.
10 Quantitative Tax-Aware Portfolio Management and Concentrated Stock.
11 Practices of Elite Tax-Aware Equity Active Managers.
12 Practices of Elite Tax-Aware Fixed Income Active Managers.
13 The Hedge Fund Dilemma.
14 Amending the Search Process for Tax-Aware Manager Selection.
Part Four: Challenging Traditional Asset Allocation Methods.
15 Challenges with Traditional Investment Policy Development.
16 Developing After-Tax Asset Class Assumptions.
17 Why the Style Box Hurts Taxable Investors.
18 Positioning Assets by the Tax Characteristics of the Entity.
19 The Role of Systems Solutions in Tax-Aware Investing.
Continuing Education Exam.
—Charlotte B. Beyer
Founder and CEO, Institute for Private Investors
"If you believe it's not what you make but what you keep,
this is must-reading. Practical, pragmatic and professional,
Doug Rogers brings a wealth of knowledge and common sense to
tax-aware investment management. Planning, measuring and
implementing, product and process—it's all here."
Chairman, Evensky & Katz
Author, Wealth Management
"Finally! A to-do manual on how best to keep the money
our investments make! Most investors—and most
investment managers—invest as though taxes can’t be
managed (or worse, don't exist). Doug Rogers has studied these
issues as much as almost anyone in the finance world and has
assembled a commonsense guide to help navigate our investment
choices with an eye on the tax man's take."
—Robert D. Arnott
Chairman, Research Affiliates, LLC
Editor, Financial Analysts Journal
"Doug Rogers combines his many years of experience with a high
degree of technical knowledge to create an innovative guide with a
fresh perspective on tax-aware strategies. In my opinion, it
is an essential tool for private investors and wealth management
professionals to manage portfolios holistically and
—Ralph C. Rittenour Jr.
Chairman and Chief Executive Officer, CTC Consulting, Inc.
"This is the definitive work on this complex and rapidly
evolving subject. Doug Rogers covers an array of
topics—including security analysis, portfolio construction
methodologies, the manager search process, asset allocation, and
technology developments—in a way that everyone can
immediately apply to more effectively manage wealth from an
after-tax perspective. Whether you are an investor, portfolio
manager, investment consultant, private banker, financial adviser,
accountant, or estate attorney, Tax-Aware Investment
Management will give you the knowledge to allow you to
differentiate yourself in today's competitive
—Thomas J. Boczar, CFA, Esq.
Chairman, Private Wealth Management Committee,
New York Society of Security Analysts (NYSSA)