Percent tax-efficiency scores are useful for screens. Client meetings often need something sharper: about how many dollars of tax effect might this fund’s distributions imply for a taxable account this year?
The job-to-be-done: fund compare in dollars
Advisors compare Fund A and Fund B not to crown a “winner,” but to make the trade-off visible. Same illustrative account size, same calendar year, side-by-side tax-drag dollars—so the conversation stays concrete. Aftertax is designed around that meeting job, not around replacing a full research terminal.
Why calendar year matters
Tax drag discussions track how distributions land in a tax year. Framing the illustration as a calendar-year view keeps announcement timing, payment timing, and “what hit this year’s return” aligned in language clients already use when they talk to their CPA.
Illustrative sample for this education page (Fund A / Fund B)
Assumed illustrative taxable sleeve: $250,000 · Sample calendar year
Bars show relative illustrative tax-drag dollars only. Names are placeholders (Fund A / Fund B)—sample labels only.
Why knowing upcoming distributions matters
Once a fund’s distribution is paid, the tax bill is usually locked in for shareholders who held through the key dates. Knowing what has been announced but not yet paid gives advisors and clients a window to act—before record and ex-dividend—rather than discovering the impact after the fact.
- Advisors can discuss whether to hold, trim, or reposition before record date
- Wholesalers can show a competitor’s upcoming distribution and the dollar tax impact in the meeting
- Clients see the difference between last year’s paid history and this year’s announced estimates
- If the manager hasn’t published an estimate, Aftertax shows Undisclosed—so you don’t invent a future number
Read more on announced vs paid, or see What is Aftertax? for product context and pricing.