Death, taxes, and costs: The biggest performance drags on Asian portfolios
12 Jun 15
Brad McCosker, head of client portfolio management at First Degree Global Asset Management, looks at the seven biggest drags on Asian investment portfolios.
The return figure that you should aim to maximise is the compound annual return after all costs and taxes. Those costs may be paid regardless of the investment chosen, the client’s tax situation, investment performance or the length of time they are invested.
Depending upon the tax laws of the country of which a client is a resident, they will generally only pay taxes when they realise a gain or receive income. The tax treatment of investments varies from country to country, but it is quite common for investment income and gains to be treaded favourably, relative to other forms of income. For example: in Singapore investment gains, dividends and interest derived by individual investors are generally not taxable.
