This isn’t covered by Schweser…or the LOSs…I had skipped it the first time around…but one of the EOC questions covers this… it’s got another half a dozen formulae that I am just not in the mood to memorize…so …is this thing supposed to be covered or not?? deep inside…i wish it had a little “Optional” logo next to it…sigh.
What exactly are you talking about, mumu?
mwvt9 Wrote: ------------------------------------------------------- > What exactly are you talking about, mumu? haha…love it 
I see how I complete forgot to mention this was in reference to GIPS…no wonder I got zero responses… So its under GIPS = Volume 6 - Page 300 “Other Issues”
I skipped it.
We use the after-tax performance calculations almost every day. I think the methodology is very simple. Nothing to remember here. Let me try. After-tax performance = Pre-tax performance - Tax Return Pre-tax performance = Same as the performance you calculate using modified dietz or any other acceptable method. Now, Tax Return = Taxes paid / Mkt. Value Taxes paid = Dividends * div. tax rate (or income tax rate) + Short-term realized gains * short-term tax rate + Long-term realized gains * Long-term tax rate Mkt. Value = Beg. Market value + Effective cash flows (This is same as the value you use in denominator in Modified Dietz formula) This one is the basic methodology. Ofcourse, there are few other variations based on which gains (highly appreciated or other) you like to realize. The variations need lot of data to be tested and have a very slim chance of showing up in the exam. I think the example they have used in the CFAI text explains the basic methodology fairly well.
Punted it.
i don’t see it in LOS. who knows, though?
if cfa asks this this will be even more absurd then the TB crap they pulled 2 years ago. this after tax is not even in a LOS…
What’s TB? I’m personally still scarred by the lack of Free Cash Flow last year in L2 and the TWO current/capital account questions. (I was reminded of the latter today while taking the Mock … right beforehand I considered truly going over and memorizing the global macro attribution formulas but they were too frightening looking … and then got to the THREE questions on the topic! Almost laughed out loud. I actually got them right by some lucky educated guesses … sigh, one more thing I’m going to have to commit to memory.)