The pre-tax return is simply the average annual compound (annualized) rate of return the fund has earned before accounting for any taxes. It assumes re-investment of any dividend or interest income, but does not reflect the taxes owed on those distributions. It can be calculated for virtually any period, but is typically reported for the one-, three-, five- and 10-year periods. Morningstar shows the pre-tax return in its tax analysis simply for convenient comparison to tax-adjusted returns.
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