POWERED BY MOMENTUM MEDIA
Funds should centralise equity portfolio management
Australian superannuation funds should manage equity portfolio implementation through a centralised provider on a single, according to Parametric.
Director of research and after tax solutions Raewyn Williams believes portfolio implementation and execution should be separate from investment idea creation and should be managed through a centralised portfolio management (CPM) manager.
Referring to a research paper from Towers Watson titled ‘Centralised Portfolio Management', Williams said CPM can retrieve value lost from tax.
The paper said the CPM manager "implements trades put forward by the portfolio's underlying active managers, taking a whole-of-portfolio focus with an aim to minimise transaction costs and tax, while balancing the tracking error introduced relative to the underlying portfolio."
But Williams said not all CPM methods are the same
"It is important to differentiate in particular between tax-managed CPM and old-style emulation solutions which may have in-built lagging conditions and continue to ignore tax in the way the portfolio is managed and outcomes measured," she says.
Recommended for you
The central bank has served up a disappointment for punters on Melbourne Cup Day.
The superannuation industry will be judged by its member services rather than how effectively it accumulates wealth, according to Stephen Jones.
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
