FTSE Russell, which is owned by the London Stock Exchange (LSE), has launched a new index series, the FTSE All-World ex Australia Net Tax (Super) Index Series, specifically for the Australian superannuation industry.
The new index series, which was developed with Qantas Super, would be aimed to support the superannuation industry’s focus towards greater transparency and more accurate measurement of performance.
It would calculate net returns for global equities after deducting both capital gains tax and withholding tax.
The withholding tax rates reflected the Australian superannuation tax treaty rates that applied to each market.
The index was expected to enable funds to accurately measure after-tax investment performance against an after-tax industry benchmark that was representative of the tax in superannuation member returns.
FTSE Russell’ managing director, Jessie Pak, said: “FTSE Russell has a strong track record of calculating net-of-tax total return indexes for different investor types, the newest of which is for Australian superannuation funds.
“Providing our clients with indexes that take into consideration superannuation tax rates reduces the tracking error between a fund and the index, therefore providing a more accurate measure of the fund’s performance.”
