Taxes are inevitable. Managing them is a lifelong process, as their impact on investment performance can be significant. In fact, a Morningstar, Inc. study showed that during the 87-year period ending in 2013, investors who ignored tax ramifications within their portfolio lost between 1%-2% of their annual returns to taxes. It is important for investors to make strategic, tax-conscious decisions about their investments, particularly if the majority of their assets are in taxable accounts. CLS’s American Tax Aware Strategy will seek to increase the tax efficiency of the portfolio.

This strategy invests in American Funds class F shares that are in line with the investor’s individual Risk Budget, in addition to tax exempt fixed income funds.