Monday, October 5, 2015

WSJ: Unfriendly Tax-Friendly Funds

By SIMON CONSTABLE

Here’s hard news about mutual funds that are designed to minimize tax burdens: The amount they save investors is often less than the extra fees investors pay the funds themselves. 

“The performance of these funds is really quite abysmal,” says David Nanigian, a professor of investments at the Richard D. Irwin Graduate School at the American College of Financial Services in Bryn Mawr, Pa., and one of the authors of a report titled “Is Your Tax-Managed Fund Manager Hiding in the Closet?” published in the Fall 2015 edition of the Journal of Wealth Management. The other authors are Dale Domian and Philip Gibson, professors at York University in Toronto and Winthrop University in Rock Hill, S.C., respectively. Read more here.

IRS, Public domain, via Wikimedia Commons




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