Tax Sensitive Implementation and Rebalancing
ATRS gives investors the ability to consider potential tax implications of portfolio changes within performance reporting systems that have "proposal" capabilities. Through consideration of unrealized gains/losses, it provides the tax impact of a specific proposal at the investment solution level within the portfolio. ATRS has created two custom reports; (1) shows the projected “payback period” required when replacing any investment solution in a portfolio and (2) shows the tax impact of a specific proposal .
After-Tax Unrealized Attribute Impact
The After-Tax Unrealized Attribute Impact report allows for a “cheat sheet” for general meeting preparedness to address immediate client needs and requests. While unrealized gain/loss reports can point an advisors in the right direction, the After-Tax Unrealized Attribute Impact report is better. It provides the estimated tax impact of making changes given a client’s tax rates and the positions underlying unrealized attributes.
Proposal Service Tax Impact Feature
The Proposal Service Tax Impact Feature is not available across all performance reporting programs. However, where available, it provides essential data for making implementation and rebalancing decisions. Utilizing client’s tax rates and the positions underlying unrealized attributes, it calculates the tax impact associated with changes for a specific portfolio recommendation.
