Active tax management
Pursue tax-management opportunities for your clients—and your business throughout the year.
Explore the benefits of tax-managed investing
Negative return ≠ zero taxes
Taxes can be a major headwind for taxable investors—even during down markets.
Many investors in U.S. equity mutual funds and ETFs experienced this painful truth in the four years that the market posted negative returns since 2000. As the table below illustrates, despite the negative returns, capital gains were still distributed and taxed.
| Year | Market Return* | Average Capital Gains Distribution (% of NAV)** |
|---|---|---|
| 2001 | -12% | 4% |
| 2002 | -22% | 2% |
| 2008 | -37% | 8% |
| 2018 | -5% | 11% |
| 2022 | -19% | 7% |
*Russell 3000 Index. **Morningstar U.S. OE Mutual Funds and ETFs.
% = Calendar Year Cap Gain Distributions / Year-End NAV. See disclosure section for more details.
It's easy to transition
If your clients hold tax-inefficient investments, consider switching to a tax-efficient investing approach when it fits your client's situation. At the very least, stop reinvesting the distributions back into those same tax-inefficient investments.
1. Build your tax-smart prospect list
Identify clients who may benefit from tax-managed investing and prioritize them depending on their current situation. Consider the client’s cost basis, marginal tax rate and their specific situation in your evaluation.
2. Follow these steps to switch to tax-efficient investing
Take action now.
It's about more than tax-loss harvesting. It's about creating long-term wealth for clients—and for your business.
Try our tax-management tools
Demonstrate the value of tax management to your clients.
PROPOSE
Investment Proposal Tool
Create a tax-managed proposal for your clients with our Investment Proposal Tool.
ILLUSTRATE
Value of Tax Management
See how much more return you may gain with a tax-managed portfolio.
COMPARE
Tax Impact
Compare investment products on a tax-adjusted basis and quickly assess the tax implications between products and categories.