How can the impact of taxes be mitigated?
In the early 1990s, sophisticated investors were beginning to use new instruments called exchange traded funds (ETFs). However, most investors were still obtaining market exposures through active vehicles. One of our family office clients using traditional active managers evaluated their after-tax performance and found them lacking. The idea of getting benchmark-like returns while remaining focused on after-tax performance was a new and intriguing one and not available through ETFs.