“But all investors, regardless of their size, can make incremental improvements.” An initial step that funds can take is to include tax efficiency as one of the components that managers will be judged upon. In addition to excessive turnover, which can trigger CGT losses on shares within one year of ownership, funds’ failure to exploit the tax benefits of franking credits is another common way of destroying tax benefits, Miller says. But this should change as more members take up account-based pensions in retirement. Pensioners can still receive franking credits while being exempt from CGT, making franked dividends particularly attractive.