Going Global: Tax-Smart Investing On The International Stage
- Over 8 trillion USD dollars of the money invested in the US mutual fund market is taxable*.
- According to Morningstar data the average active or passive US international Fund had an annual tax drag of over 1%**.
- Many capital loss carry-forwards from the 2008 financial crisis are expiring on actively managed international equity funds, which could greatly increase tax drag.
*2018 ICI Factbook
**as of March 31, 2018.
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Morningstar tax drag number sources : U.S. Fund Large Blend, U.S. Fund Large Growth, U.S. Fund Large Value, U.S. Fund Mid-Cap Blend, U.S. Fund Mid-Cap Growth, U.S. Fund Mid-Cap Value, U.S. Fund Small Blend, U.S. Fund Small Growth, U.S. Fund Small Value, U.S. Fund China Region, U.S. Fund Diversified Emerging Markets, U.S. Fund Diversified Pacific/Asia, U.S. Fund Europe Stock, U.S. Fund Foreign Large Blend, U.S. Fund Foreign Large Growth, U.S. Fund Foreign Large Value, U.S. Fund Foreign Small/Mid Blend, U.S. Fund Foreign Small/Mid Growth, U.S. Fund Foreign Small/Mid Value, U.S. Fund India Equity, U.S. Fund Japan Stock, U.S. Fund Latin America Stock, U.S. Fund Miscellaneous Region, U.S. Fund Pacific/Asia ex-Japan Stock, U.S. Fund World Large Stock, U.S. Fund World Small/Mid Stock The Morningstar categories are as reported by Morningstar and have not been modified. © 2018 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Interviews were recorded as of the date mentioned in the podcast, these views are subject to change at any time without notice based upon market or other conditions and are current as of that date. It is made available on an "as is" basis. Russell Investments and Russell Investments Canada Limited does not make any warranty or representation regarding the information. While all material is deemed to be reliable, accuracy and completeness cannot be guaranteed. This is not an offer, solicitation or recommendation to purchase any security or the services of any organization. Investing in capital markets involves risk, principal loss is possible. There is no guarantee the stated outcomes in the presentation will be met. The audio may contain forecasting or other forward-looking information, this information is inherently uncertain and may be incorrect. This is a presentation of Russell Investments and Russell Investments Canada Limited. Nothing in this presentation is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The contents of this presentation are intended for general information purposes only and should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional concerning your own situation and any specific investment questions you may have. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. Russell Investments is the operating name of a group of companies under common management, including Russell Investments Canada Limited. Russell Investments’ ownership is composed of a majority stake held by funds managed by TA Associates with minority stakes held by funds managed by Reverence Capital Partners and Russell Investments’ management. Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the “FTSE RUSSELL” brand. UNI- 11322 Date of first use: August 2018
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