-
$375K
$128K
$1,051K
Risk reduction
Higher Gains/ Lower Risk
Lower gains/ Higher Risk
Initial Portfolio
Buy Turnover*
450
350
265
225
Securities Held
0.30%
1.40%
2.50%
3.30%
Tracking Error
$380K
$90K
$0
-
Net Realized Gain
$90K
$19K
($5K)
-
Estimated Tax Cost
*ie. future loss opportunity
For Illustrative Purposes Only. Tax rates assumed to be 40.8% Short Term, 23.8% Long Term. Tracking Error measures the standard deviation of the difference between the investment performance of the strategy or fund and that of the index. There is no guarantee that tracking error targets can be achieved; actual or experienced tracking error can deviate significantly. Buy Turnover provides the amount that is most likely to generate future losses. Within the first 12 months of investment, NTAM expects to harvest 5–10% of the Buy Turnover in short-term losses.