Tax wrapper choice could wipe out investor returns

Wrapper choice can have a huge impact on fund returns, as demonstrated by Fidelity FundsNetwork's analysis of potential yields and losses

The wrong choice of tax wrapper could obliterate fund returns because of the UK's tax regime according to FundsNetwork. Over a 20-year period, investors in Invesco Perpetual Income could have taken a 188% performance hit if they had chosen the wrong type of wrapper. Fidelity FundsNetwork's new tax wrapper analyser, launched this month on its platform, aims to allow advisers to choose the optimum tax framework for individual clients. Group head of trusts and tax planning Paul Kennedy said tax wrapper choice can have a huge impact on returns. "From a tax perspective, it is clear certa...