SEI has shaken up the tax structure of its Tax-Managed Large Cap Fund in a bid to reflect the growing interest in after-tax returns among investors.

The new system allows the fund’s overlay manager to deal with taxes by, among other things, selling stocks with the highest tax cost first and delaying recognition of taxable gains when this is possible.

This will give mutual fund investors the same tax management benefits that the company’s separately managed account investors have had for about a decade, SEI said.

“Given the uncertainty around taxes, investors are increasingly focused on overall investment returns on an after-tax basis,” said Kevin Crowe, head of product development for the SEI Advisor Network.

Three out of four of advisors think that proactively managing taxes is a key consideration when making investment decisions, according to a recent SEI poll. The survey also found that one in three advisors believe they can preserve an additional six per cent of their clients’ wealth annually by tax management.