Determining or estimating effect of taxes on performance

[spock]

I'm enjoying exploring this program and there's a lot of it that really appeals to me. But, one thing I want to be able to see is the effect of taxes on overall performance. While I can see the benefit of seeing pre-tax ROI, post-tax ROI would seem to be what matters in the end. If I hire someone to manage an account and they manage to beat the market pre-tax, but due to significant trading activity and account turnover, the account actually underperforms post-tax, that seems to be something I would want to know.

Is there any way I could see this in Fund Manager? While it might be a challenge to assign taxes paid to individual investments, I know the taxes paid for a particular account, just like I know the account fees (because these are irrevocable trusts that pay their own taxes). Maybe making use of Account Fees is the right way to do it? Is it possible to create multiple categories of account fees so I can separate advisor/bank fees from taxes, while also choosing to exclude or include them in report ROI calculations as desired?

This is relevant to me as I am trying to compare the performance of two separately managed accounts, one that is significantly more actively traded than the other.

[Mark]

Hi spock,

Yes, you could use the "Account Fee" distribution type for this. You can optionally include/exclude account fees from the yield calculations. See "Options / General Preferences... / Yields / Include Account Fees in Yield Calculations".

Also, you can use another distribution type to help separate things. See "Options / Distribution Labels...". You could relabel the "Account Fees" as "Taxes Paid" or something like this. You could create another distribution with a name for tracking other fees. The distribution type with the original name of "Account Fee" is unique in that it can either be included/excluded from return calculations. All of the others are always factored into return calculations.