Tuesday, December 28, 2010

After-tax Returns

After-tax returns are reported returns which factor in the impact of taxes. When examining returns you need to ascertain on what basis they are prepared e.g. are they after tax, fees, and other expenses? You should do this to ensure you compare returns on a like-for-like basis. In the US the SEC has a rule which requires all mutual funds to state explicitly the after-tax returns in their prospectuses and offer documents. The GIPS Standards on performance set out best practice on reporting returns.

Synonyms: Tax inclusive returns, Tax adjusted returns, Real returns, Net returns

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