Deloitte tax director Daryn Loo has jumped ship to industry super fund Cbus to take on the newly created role of general manager, investments taxation.
Loo will report to Cbus executive manager investment management Trish Donohue.
“Daryn’s knowledge across a wide range of tax issues will make him a valuable addition to our growing internal team; his experience in investment tax due diligence and advice on tax structures will assist us with future investment decisions,” Donohue said.
His is the latest in a string of appointments at the $34 billion construction industry fund as it beefs up its internal investment team.
“I’m looking forward to working with Cbus as they roll out their future investment strategy,” Loo said.
The decision by Cbus to appoint a head of tax management to its in-house investment team reflects the growing pressure on superannuation managers to stem tax losses.
Low interest rates and artificial liquidity have pumped up investment markets over the past seven years, making it relatively easy for super funds to deliver plump average net returns.
However, a lower returns outlook for the seven years ahead means a growing number of super funds are considering how to implement more effective tax management strategies. By more carefully structuring transactions and trading execution processes funds can reduce the tax leakage in their portfolios and boost net returns.
The Australian Prudential Regulation Authority dictates that super funds have an obligation to consider the effect of taxation on member balances.
Loo joins Cbus from Deloitte, where he spent three years as a tax director working with clients in the financial services sector.
Prior to that he spent nearly seven years at rival big four accounting firm Ernst & Young as a tax manager specialising in financial services and mergers and acquisitions. Loo began his career as an analyst with the Australian Taxation Office.
The announcement of Loo’s appointment to Cbus comes just a few weeks after the fund said it had recruited Linda Cunningham, Anna Weickart, and Alex Miller to its expanding in-house investment team.
In August 2016, the Cbus board signed-off on a plan to insource the asset management of up to 20 per cent of the fund’s total portfolio.