Product Brief

Everything You Need to Know About Working with Tax Lots

Investors are counting on their investment managers to help them minimize the impact of taxes resulting from their securities trades. A lower tax bite means higher returns overall. For investors in high tax brackets, reducing capital gains by even a few basis points can add up to big tax savings. The ability to track and manage tax lots—essentially different purchases of the same security at different costs over time—is an important tool for investment managers to make trading decisions that will deliver the optimal tax treatment for their clients.