Tax-managed equity index investing

Active tax management can be used to enhance after-tax returns of indexed Australian and international equity portfolios for superannuation funds. The systematic and prudent implementation of tactics such as capital-gains/loss management and holding-period management can add real after-tax value. Simulations and back tests carried out by Parametric consistently demonstrate added value in the range of […]

“EU will survive no problem”,
US in recovery

The European Union will survive and the US economy will bounce back, according to international experts speaking at a CMSF plenary session. Andreas Huebner, senior managing director of Lazard, said the “EU will survive no problem” but acknowledged there was a long way to go, with economic fundamentals still weak. He sees the real problem […]

Maximising tax efficiency

There have been a number of studies that look at the after-tax returns of investment managers and conclude that for individual taxable investors, most managers do not generate enough excess return to cover the tax bill caused by the resulting capital gains tax. Superannuation funds have a lower tax rate than individuals, but the tax […]
Hedge Funds

Super SA launches new fund for low-income earners

The unique governance structure of state government funds has led public sector fund Super SA to develop a new scheme in response to the Commonwealth’s Low Income Superannuation Payment (LISC). Introduced last year, LISC helps low-income earners save for their retirement, by refunding the 15-per-cent tax deducted from concessional contributions (salary sacrifice and/or employer contributions) […]
Investment Strategy

Russell ranks managers’ post-tax performance

Russell Investments plans to rank managers quarterly on their after-tax performance, with the results informing the consultant’s manager-selection decision-making processes. Raewyn Williams, Russell’s director of after-tax investment strategies, says the consultant has launched an after-tax benchmarking survey, which it sent out to more than 110 Australian equity managers this week. The survey aims to provide […]
Investment Strategy

Super funds concerned about tax reporting

Superannuation funds are concerned about product compliance around new demands on pre and post-tax reporting of performance, says the chief executive of  DST Global Solutions, which provides software for asset managers. “We anticipate a lot of changes around tax reporting,” says Tom Abraham. “There will be a whole industry around tax minimisation that will come […]
Investment Strategy

Shorten, FSC spar over budget

Australia’s budget was a disappointment for asset managers, according to the Financial Services Council (FSC). The government disagrees, saying its policies have improved fairness, sustainability and efficiency in superannuation. Asset managers, like many who run companies, expected a tax cut in the budget, says Martin Codina, director of policy at the FSC. The lack of […]