METHOD AND APPARATUS FOR CALCULATING A TAX COST DIFFERENCE BETWEEN ACTUAL AND MODEL INVESTMENT PORTFOLIOS

摘要

A method and apparatus of a device that computes the total tax cost difference between an actual client portfolio and a model portfolio is described. In an exemplary embodiment, the device receives client data corresponding to the actual portfolio and model data corresponding to the model portfolio. The device further computes the total tax cost difference between the actual portfolio and the model portfolio. To compute the total tax difference, the device computes a plurality of individual tax cost differences during a comparison time period between positions of a plurality of securities in both the actual portfolio and the model portfolio and sums the plurality of individual tax cost differences to give the total tax cost difference. In addition, the device stores the total tax cost difference in storage.