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Tuesday, May 5, 2020 | History

2 edition of Home bias in portfolios and taxation of asset income found in the catalog.

Home bias in portfolios and taxation of asset income

Roger H. Gordon

Home bias in portfolios and taxation of asset income

  • 9 Want to read
  • 20 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • Capital investments -- Taxation.,
  • Capital movements.,
  • Capital market.

  • Edition Notes

    StatementRoger Gordon, Vitor Gaspar.
    SeriesNBER working paper series -- no. 8193, Working paper series (National Bureau of Economic Research) -- working papr no. 8193.
    ContributionsGaspar, Vitor., National Bureau of Economic Research.
    The Physical Object
    Pagination23 p. ;
    Number of Pages23
    ID Numbers
    Open LibraryOL22418366M

      Tables 3 and 4 reveal strong cross-country evidence of a persistent bias exhibited by mutual fund managers toward US firms with presence in their home country. The local-presence coefficients are all positive and statistically significant at the 5% level. For example, Table 3 shows that the magnitude of the θ i,j,t coefficient varies from (t-statistic=) in Cited by:   In their study, Is Your Alpha Big Enough to Cover its Taxes, Robert Jeffrey and Robert Arnott found that, during the ten-year period they studied, 21% of actively managed funds beat passive alternatives on a pre-tax basis, while just 7% did so on an after-tax concluded: “The preponderance of evidence is so convincing we conclude that the typical .


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Home bias in portfolios and taxation of asset income by Roger H. Gordon Download PDF EPUB FB2

Home bias in portfolios and taxation of asset income. Cambridge, MA.: National Bureau of Economic Research, © (OCoLC) Material Type: Internet resource: Document Type: Book, Internet Resource: All Authors / Contributors: Roger H Gordon; Vitor Gaspar; National Bureau of Economic Research.

Home Bias in Portfolios and Taxation of Asset Income Roger Gordon, Vitor Gaspar. NBER Working Paper No. Issued in March NBER Program(s):International Finance and Macroeconomics, Public Economics Intuitively, the observed 'home bias' in individual portfolios plausibly explains the international capital immobility in aggregate data reported by Feldstein.

Get this from a library. Home Bias in Portfolios and Taxation of Asset Income. [Roger Gordon; Vitor Gaspar] -- Intuitively, the observed 'home bias' in individual portfolios plausibly explains the international capital immobility in aggregate data reported by Feldstein and Horioka () as.

HOME BIAS IN PORTFOLIOS AND TAXATION OF ASSET INCOME Roger H. Gordon and Vitor Gaspar There is now extensive evidence that individual investors have a strong tendency to invest in domestic rather than foreign equity.1 This “home bias in portfolios can poten-tially have important implications for economic behavior and economic policy.

For one. Home bias is the tendency for investors to invest in a large amount of domestic equities, despite the purported benefits of diversifying. One of the important tenets of DIY investing is to make sure your asset allocation is on track and ‘on point’.

According to Investopedia, asset allocation is an investment strategy that balances risk and reward by looking at your time frame, your risk tolerance, and your investing goals. Sure, I would have loved to have gotten at 20% return on my portfolio in. Income Portfolios - What they are not Many people think investing in an income portfolio means that they are going to receive dividends and coupons regularly in the mail or in their bank : Kenneth Kim.

For example, UK equities accounted for per cent of the overall global equity market inaccording to Bloomberg, yet they accounted for around 27 per cent of UK multi-asset portfolios.”Author: Ellie Duncan.

Portfolio income is money received from investments, dividends, interest, and capital ies received from investment property also. Home Bias in International Equity Portfolios: a Review 5 Dahlquist, Pinkowitz, Stulz and Williamson () argue that the deflnition of the equity home bias as the difierence between the proportional domestic equity investments and the proportional market capitalization { the benchmark portfolio of the model-based approach {is incorrect.

We cover different home bias measures and we illustrate the extent and the evolution of equity home bias both with recent portfolio holdings data and longer time series.

Institutional-based and behavior-based explanations for the puzzle are considered and by: The primary objective of the Fidelity Fund Portfolios-Income is to provide a representation of just one way you might construct a portfolio of Fidelity mutual funds, designed for the purpose of providing a focus on interest and dividend income, over a range of long term risk levels, which are consistent with the asset allocations of a (sub)set of Fidelity’s Target Asset Mixes (TAMs).

Home bias in portfolios and taxation of asset income Roger H. Gordon and Vitor Gaspar; Social dumping in the transformation process; Part V. Political Economy: Do political institutions shape economic policy. Torsten Persson.

The book Conference (IMF Survey, Appage ) 6. A somewhat different option that comes with more market risk is the Guggenheim Multi-Asset Income fund CVY, +%, which seeks to replicate the performance of the Zacks Multi-Asset Income index.

Introduction. There is a large literature on equity home bias, 1 that is, the fact that investors are found to hold a disproportionately larger share of their wealth in domestic portfolios as compared to predictions of standard portfolio theory. In the home bias studies, the actual portfolio holdings are compared to a by: Home country bias is the overweight of your home country or region in your asset allocation.

A simple reason for this is familiarity (and in many countries a lack of opportunity to invest elsewhere). See: Home country bias from finiki, and Equity home bias puzzle from Wikipedia. An article in A Wealth of Common Sense discusses how the different regions of the world differ in.

This is a great book about the finer points of managing fixed income. Each chapter is written by a different, well-respected author with their own original research. I worked as a broker and consultant for some surprisingly large fixed income managers and most of them had never heard about at least 50% of the stuff you will learn in this book 5/5(2).

Australia's home bias and cross border taxation. The Home Bias Puzzle in Equity Portfolios. Article. Dec ; Taxation of Asset Income in the Process of a World Securities Market.

Introduction. Existing literature has established the first-order significance of corporate headquarters locations for financial investments and corporate finance. 1 Despite the vast literature on how corporate headquarters location affects asset pricing and corporate finance, the research on the determinants and effects of corporate subsidiary locations remains : Yunsen Chen, Jianqiao Huang, Sheng Xiao, Ziye Zhao.

The Book on Tax Strategies for the Savvy Real Estate Investor: Powerful techniques anyone can use to deduct more, invest smarter, and pay far less to.

Extant research has documented a substantial impact of culture and patriotism on equity home bias. This paper examines whether culture and patriotism influence home bias in bond portfolios.

Contact Us. SmartTrust® Unit Investment Trusts c/o Hennion & Walsh. Ro Waterview Plaza Parsippany, NJ () – [email protected] Debt bias in Corporate Taxation In most countries, interest on debt and the returns to equity capital are treated differently for the purposes of defining tax liabilities.

Because interests are deductible from the corporate tax base while returns to equity are not, this introduces a tax advantage for debt financing which distorts financial.

Here, we explore the tax implications of two types of ‘home bias’ – UK-based investments and a concentration in property – and look at why diversification is so important. Home bias #1: UK investments.

With familiar rules and benefits, it is understandable that many expatriates keep savings and investments in UK structures. Reinforcing Home Bias Dziuda and Mondria built a mathematical model for home bias that describes a full circle. It begins with a home bias outlook in the individual investor’s access to information, follows its effect on investors’ judgment of a portfolio manager’s capabilities, and comes all the way around to reinforcing the home bias.

Simple non-US portfolios are designed to perform well for non-US investors in most market conditions. Most contain a small number of low-cost funds that are easy to rebalance.

They are "lazy" because the investor can maintain the same asset allocation for an extended period of time. Downloadable. We investigate how personal income taxes affect the portfolio share of personal wealth that entrepreneurs invest in their own business.

In a reformulation of the standard portfolio choice model that allows for underreporting of private business income to tax authorities, we show that a fall in the tax rate may increase investment in risky entrepreneurial business equity at Cited by: 1.

BIAS Quarterly Review & Outlook. Every quarter, we send a BIAS Quarterly Review & Outlook to our Managed Portfolio Services clients, a publication in which we provide the following: Summary of prior quarter market events; BIAS’ outlook and strategic direction; This publication is also available on our website.

Books shelved as fixed-income: The Handbook of Fixed Income Securities by Frank J. Fabozzi, Bond Markets, Analysis, and Strategies by Frank J.

Fabozzi, F. Chapter 5 Capital Income Taxation. “home bias” in asset holdings. Where people “hold” their asset portfolios is a legal fiction. For example, a portfolio of shares in U.S., European, and Japanese companies can be held” in a Caribb“ ean island where.

The standard encyclopedia for tax law research is Tax Management Portfolios. The print version is a large collection of spiral-bound volumes, grouped by broad topic area, with each individual volume covering a specific, narrow set of issues. Our managed portfolios are designed to enhance your return/risk tradeoff and reduce taxes while providing a transparent, diversified asset allocation.

To accomplish this, the portfolios follow a systematic, emotion-free process based on in-depth research, increasing the probability of success in the long-run.

Historical Month Distribution Rate of Trust Holdings. Covered Call Select Closed-End, Diversified Fixed Income ETF, Diversified High Income Closed-End, Dividend & Income Select Closed-End, FT High Income Model, 1st Qtr Global Bond Income Closed-End, High-Yield Income Closed-End, January Effect, 9.

Investment Income The income one derives from capital gains, dividends, and other activities related to the purchase and sale of securities. This differs from wages and salary primarily in that one does not need to work for investment income.

One can manage one's investments oneself, or one can hire a money manager to do it. Both individuals and. International Portfolios with Supply, Demand and Redistributive Shocks Nicolas Coeurdacier, Robert Kollmann, Philippe Martin.

Chapter in NBER book NBER International Seminar on Macroeconomics (), Richard Clarida and Francesco Giavazzi, organizers (p.

- ) Conference held JuneCited by: Portfolio income is derived from investments and includes capital gains, interest, dividends, and royalties. Various types of portfolio income are taxed differently. For example, capital gains on investments held for longer than 12 months are taxed at a rate of 10% to 20%, and those held for less than 12 months are taxed as regular income.

The thread seems to have drifted away from the original topic, which was home bias in equities, and into dividend investing. I guess I'm responsible, although that was not my intent. It is a big topic and should get its own thread, if anyone wants to pursue it.

Here, let me summarize what I wanted to say about home bias in equities. Suppose you start with 60% equity and 40% fixed income and after one year, you have 80% equity and 20% fixed income (bumper returns from stock market).

You sell the excess 20% from equity and buy more fixed income and reset the asset allocation back to The basics are explained here. Downloadable (with restrictions). The relationship between cross border taxation and free float home bias is examined. This explicitly recognizes that insider shares are unavailable to foreigners.

Other important explanations for home bias – information asymmetry, behavioural and governance issues – are controlled when examining the impact of cross border tax variables. CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): The strong bias in favor of domestic securities is a well-documented characteristic of international investment portfolios, yet we show that the preference for investing close to home also applies to portfolios of domestic stocks.

Specifically, U.S. investment managers exhibit a strong preference for locally. If a CD is paying just 2 to 3 percent, you could see your income from that asset drop from $6, a year down to $2, a year if you had $, invested.

Lower risk interest-bearing investments include CDs, government bonds, double-A rated or higher corporate and municipal bonds, and blue-chip dividend-paying stocks.The Mental Accounting Bias And The Search For Income People work hard for their money, spending decades saving for the future, building long-term investment portfolios that might someday sustain a lifestyle well beyond retirement.

Expert Opinion How New Tax Law Affects Investment Portfolios: The Advisor and the Quant "Advisor" Joe Elsasser and "Quant" Ron .