RT Journal Article
SR Electronic
T1 Practical Applications of Is Smart Beta Still Smart After Taxes?
JF Practical Applications
FD Institutional Investor Journals
SP 1
OP 4
DO 10.3905/cfa.2014.1.001
VO 1
IS CFA
A1 Paul Bouchey
A1 Cathy Scott
YR 2014
UL https://pm-research.com/content/1/CFA/1.1.abstract
AB Is Smart Beta Still Smart After Taxes? Paul Bouchey Most investment processes completely ignore taxes, which is particularly alarming given the tax increases that took effect in 2013, asserts Paul Bouchey, Managing Director of Research at Parametric Portfolio Associates .Bouchey focused on the after-tax performance of several smart beta strategies when he addressed delegates at the 67th CFA Institute Annual Conference in Seattle.In an exclusive interview for this Practical Applications report, Bouchey said smart beta strategies are gaining in popularity among high-net-worth individuals and institutional investors, leading to a plethora of new products. And, they inherently incur higher turnover than portfolios following capitalization-weighted indices, resulting in a greater tax impact that can reduce the value added on an after-tax basis.