Eaton Vance says it can add as much as 50 basis points to a superannuation fund’s annual performance by improving their tax management.
Only about a third of Australia’s superannuation funds closely analyse their after tax performance, says the Boston-based firm.
“In the last five years there has been a move from before tax to after tax management but a lot more can be made,” says Nicholas Allen, Eaton Vance’s Australian representative.
The firm’s Seattle-based unit Parametric hopes to garner superannuation clients eager for after tax advice. Eaton Vance has one superannuation client that it gives advice on tax management.
“We’re in the process of building a business,” says Allen. “We will take on investment professionals as need be.”