Abstract
One way we can attempt to judge the best investment strategy for nuclear decommissioning trust funds (NDTs) is to examine past after-tax returns of various investment options. The authors of this chapter make such an evaluation. They note that no passively managed asset class allowed in qualified NDTs has produced real after-tax returns. They conclude that an active, rather than a passive, investment strategy is necessary, and they stress the advisability of short- and intermediate-term fixed-income securities such as municipal bonds. However, when the authors applied the hypothetical 15 percent tax rate proposed in a new Congressional bill (HR 4653), several asset classes did provide real aftertax returns.
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