Valuing Future Income Tax Benefits: a how-to guide

During the market’s boom
years, trustees only had to worry about minimising capital gains tax
liabilities and maximising franking credits to assure a good after-tax performance
for their fund. But with the concept of ‘gains’ long gone, and dividends on
their way down too, harvesting losses is suddenly the name of the game. This article,
by DREW VAUGHAN of administration consultancy Dymonds Foulds

Vaughan, is intended to increase discussion about
issues surrounding the inclusion of future income tax benefits (FITBs) in unit
price calculations.

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Valuing Future Income Tax Benefits: a how-to guide

During the market’s boom years, trustees only had to worry about minimising capital gains tax liabilities and maximising franking credits to assure a good after-tax performance for their fund. But with the concept of ‘gains’ long gone, and dividends on their way down too, harvesting losses is suddenly the name of the game. This article, by DREW VAUGHAN of administration consultancy Dymonds Foulds Vaughan, is intended to increase discussion about issues surrounding the inclusion of future income tax benefits (FITBs) in unit price calculations.

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Capital National Alliance sheds veteran but lives another day

Capital National Alliance has let a well-respected representative go as Capital International seeks a more direct relationship with Australian institutions, but the entity will continue to administer and currency-manage a wholesale trust here.

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The Superannuation Guarantee: should it be used as a tool of economic policy?

On March 5, Investment & Technologyand investment administration softwareprovider, SimCorp, held a roundtablediscussion on last November’s “economists’open letter” to the Rudd Government.Signed by eight of Australia’s leading economicminds, the letter advocated a shorttermreduction in the superannuationguarantee to 6 per cent, and a relaxing ofsuper access rules, as an economic stimulusduring this financial crisis. The letter wenton to advocate a gradual increase in theSG as Australia’s economy recovered, to aproposed 12 per cent by 2015.


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The Superannuation Guarantee: should it be used as a tool of economic policy?

On March 5, Investment & Technologyand investment administration softwareprovider, SimCorp, held a roundtablediscussion on last November’s “economists’open letter” to the Rudd Government.Signed by eight of Australia’s leading economicminds, the letter advocated a shorttermreduction in the superannuationguarantee to 6 per cent, and a relaxing ofsuper access rules, as an economic stimulusduring this financial crisis. The letter wenton to advocate a gradual increase in theSG as Australia’s economy recovered, to aproposed 12 per cent by 2015.

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Swedish backtracker: AP3 retreats from equities but ploughs into alternatives

Like all other pension funds, Sweden’s AP3 is a long term investor. However, the extraordinary circumstances of the last 18 months has forced the fund to reconsider its short-term risk appetite, and whether there are better ways to allocate its risk budget in this highly volatile environment. “We, as is every fund in the world, are discussing also our short-term risk preference and the big question is: where are equities going next?” says Erik Valtonen, chief investment officer of AP3, who had a chance to compare experiences with his Australian counterparts last month as a speaker at Terrapinn’s Asset Allocation Summit in Sydney.


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