TY - JOUR T1 - An Approach to After-Tax Performance Benchmarking JF - The Journal of Wealth Management SP - 61 LP - 67 DO - 10.3905/jwm.2000.320339 VL - 3 IS - 3 AU - Jean L.P. Brunel Y1 - 2000/10/31 UR - https://pm-research.com/content/3/3/61.abstract N2 - A vexing question for investors who must be concerned with taxes relates to assessment of after-tax performance of a full portfolio or of any of its component parts. Performance analysis usually has two main components: measuring returns, pre- or after-tax; and assessing the returns. The author reviews a common benchmarking approach in the private equity industry and draws an analogy between the private equity problem and the issues faced in assessment of after-tax performance. He proposes two variants on the private equity performance assessment approach as possible solutions to the problem. The main drawbacks of direct use of vintage year portfolios are both complexity and the fact that vintage year portfolios would still not allow one to differentiate between various levels of unrealized capital gains in portfolios at the onset. An alternative would group portfolios into various baskets determined according to the ratio of market-to-book value of the portfolio at the initial management mandate. ER -