PORTAX is a Windows desktop application that primarily assists investors and
financial advisors with medium and long term strategic taxable portfolio
analysis. This includes asset
allocation, asset location with multiple tax entities, cash management and tax
planning. PORTAX also has the
ability to plan investment funding for corporate projects and solve taxable and
institutional spending requirements.
PORTAX was developed in 1994 as an in-house proprietary software tool to assist
high net worth investors with low cost basis investments and assist utilities
with funding for planned decommissioning of nuclear power plants. These two diverse tasks both require
multi-period analysis with detailed tax considerations. Over the years, different clients
requested direct access to PORTAX and the project gradually became a commercial
software package for tax sensitive investors and financial advisors.
The original focus and continued development for PORTAX is on the
financial engine. The software is
open architecture with extensive documentation including citations for various
technical procedures used in the software.
Open architecture means that a PORTAX user has control of all the inputs
to the model and access to all the formulas used in the output with the
exception of some heuristics used in the optimizer. One of the design goals is to make
the PORTAX calculations as comprehensible and verifiable as possible.
Investing in a taxable environment over a
multi-year and in some cases multi-generational horizon can involve complex
issues. The next section on Taxable
Investing is a brief overview that is helpful background for understanding the
design and purpose of the PORTAX software.