Abstract
Most investment processes completely ignore taxes, which is particularly alarming given the tax increases that took effect in 2013, asserts <b>Paul Bouchey</b>, Managing Director of Research at <b>Parametric Portfolio Associates</b>. Bouchey focused on the after-tax performance of several smart beta strategies when he addressed delegates at the <b>67th CFA Institute Annual Conference</b> in Seattle. In an exclusive interview for this <b><i>Practical Applications</i></b> 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.
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