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Portfolio Optimization Can Help You Maximize Returns After Fees
After-Tax
Return 		After-Fee
Return 		 
  Most clients do not realize how many fees they pay on their asset management. Typically money managers charge more than 2% per year. After fees, few money managers out-peform the index.
We work with asset managers who understand how to design portfolios with Exchange Traded Funds ("ETFs") and similar vehicles with dramatically lower fees. They pass on these fee savings to our clients. The chart below shows the potential savings:
Fund
Category 		Avg. Active
Fund (bps) 		Avg. Index
Fund (bps) 		 Exchange Traded
 Funds (bps) 		 
S&P 500 134 61
9.45 iShares S&P 500
  
Large Cap
Value 		140 66
20 iShares Russel 1000
  Value
18 iShares S&P/BARRA
  
Small Cap 160 64
20 iShares Russell 2000
18 iShares S&P 600
  
Mid Cap 152 33
20 iShares S&P 400
  
International 187 86
84 iShares MSCI
  
Emerging Markets 231 58
99 iShares MSCI
  Emerging Mkt Series
  
Tech
Sector 		177 60
60 iShares DJ Tech
  
  ETF annual management fees may be significantly less than those of most mutual funds. ETF transactions will result in brokerage commissions, but the savings from lower annual fees can help offset these costs. Source: Morningstar, BGI Analysis, 6/01
U.S. Treasury Circular 230 requires that this firm advise you that any tax advice provided was not intended or written to be used, and cannot be used by you, for the purpose of avoiding penalties that the IRS could impose upon you.