October 8, 2014 - Kenneth Blay

Join Us for Lunch with Speaker Kenneth Blay

Topic Tax-Cognizant Portfolio Analysis: Maximizing After-Tax Wealth
Date Wednesday, October 8, 2014
Time 12:00 pm – 1:00 pm
Location UT Club
Speaker Kenneth Blay – 1st Global

Click Here for a copy of the presentation slides.

Topic Description:
While Markowitz’s classic 1959 book Portfolio Selection: Efficient Diversification of Investments discussed and provided a recommendation for dealing with illiquidity issues presented by capital gains being taxed only when realized, many of the tax-deferred and tax-exempt investment opportunities now available to investors were not in existence at that time. Today, the most prevalent methods of considering taxes in portfolio construction are the preliminary adjustment of asset allocation inputs for taxes and the post-optimization application of asset location heuristics. These methods are unsatisfactory in that they fail to address taxation dynamics that result from investment and consumption dependent illiquidities. Tax-Cognizant Portfolio Analysis (TCPA), the latest research on tax-efficient asset allocation by Kenneth Blay and Dr. Harry Markowitz, will be presented as a methodology that addresses these issues while seeking to maximize expected after-tax wealth for given levels of risk.

About Kenneth Blay

Kenneth BlayKenneth A. Blay serves as the Director of Research for 1st Global. He leads asset allocation research and investment policy recommendations for the firm’s $7 billion investment management platform. He has played an instrumental role in the development of 1st Global’s efforts in portfolio management, investment due diligence, capital markets analysis and the establishment of the Investment Management Research Group, which today oversees the firm’s portfolio management research. Kenneth has worked extensively with Dr. Harry Markowitz on portfolio analysis, risk management and various research initiatives including tax-cognizant asset allocation. He is a co-author with Dr. Harry Markowitz of “Risk-Return Analysis: The Theory and Practice of Rational Investing – Volume I.”


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