Superannuation funds, government funds and multi-mandate managers may be missing out on tax efficiencies, according to DST Global Solutions.
Tax parcel optimisation is a process which allows asset managers and asset owners to reduce tax through appropriate parcel selection when selling shares.
“Tax benefits should be considered alongside other fundamentals and analysis that managers examine prior to trading,” said David Rhind, DST Global Solutions regional solutions head.
“However, delivery of timely and meaningful tax parcel information across managers in a fund, whilst retaining necessary privacy, is a hurdle that the industry needs to overcome,” he said.
For the fund to improve post-tax performance, the pre-trade analysis has to be undertaken at the fund level and be part of a custodian’s standard offering to their clients. To date however, custodians have been offering this service known as ‘propagation’ on a fee-for-service basis as opposed to part of their standard offering, he said.
“With more sophisticated systems, investment managers and asset owners are starting to consider the advantages of tax parcel optimisation services.
“Tax parcel optimisation can be used in both rising and falling markets, resulting in either current or future benefits.”
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.