PT  - JOURNAL ARTICLE
AU  - D.K. Malhotra
AU  - Vivek Bhargava
AU  - Rand Martin
TI  - Mutual Fund Governance and Tax Efficiency
AID  - 10.3905/jwm.2015.18.2.055
DP  - 2015 Jul 31
TA  - The Journal of Wealth Management
PG  - 55--66
VI  - 18
IP  - 2
4099  - https://pm-research.com/content/18/2/55.short
4100  - https://pm-research.com/content/18/2/55.full
AB  - In this article, the authors investigate the relationship between mutual fund governance and tax efficiency. They use an overall fund governance grade and components of that governance grade—board quality, managerial incentives, corporate culture, fees, and regulatory compliance—to evaluate the effect of governance on a fund’s tax efficiency. They measure tax efficiency as the percentage of the fund’s return that is lost to taxes. They find that a fund’s overall stewardship grade positively affects its tax efficiency. Of the five determinants of the overall stewardship grade, they find that corporate culture, managerial incentives, and regulatory compliance play significant roles in influencing a mutual fund’s tax efficiency.TOPICS: Mutual funds/passive investing/indexing, legal/regulatory/public policy, wealth management