POWERED BY MOMENTUM MEDIA
New index measures after-effects of CGT
FTSE Group and the Association of Superannuation Funds of Australia (ASFA) have launched another index measuring the after-effects of tax, adding capital gains tax to an existing series that covers franking credits and off market buy-backs.
The FTSE Group and ASFA announced the expansion of the FTSE ASFA Australia Index Series yesterday, brought about in response to support from superannuation funds for additional industry standard after-tax benchmarks. A benchmark that included capital gains tax would facilitate after-tax assessments on a far more granular level, ASFA stated.
“After-tax reporting is of growing importance, given the Government’s Stronger Super proposals around setting investment strategies with regard to the after-tax outcomes,” said ASFA chief executive, Pauline Vamos. “The outcome of the Stronger Super reforms is to create a set of objective criteria to benchmark superannuation funds. These indices are clearly part of the solution.”
More after-tax benchmarks brought further clarity to market performance and would assist trustees in providing better investment performance for members, she added.
Sunsuper chief investment officer, David Hartley, said that while people focused on fees and costs, it was actually tax that took the biggest amount out of super savings. This assertion was supported by NAB executive general manager, asset servicing, Leigh Watson, who said that the bank’s own analysis showed that tax expenses could comprise 70 per cent of overall expenses for super funds and managed investment schemes.
The new index could also be used as the basis for the creation of index-linked products such as exchange-traded funds, structured products and other derivatives due to its liquid and tradable nature, the group stated.
AUTHOR
Caroline Munro
Recommended for you
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
