ACS gives Parametric $60 million mandate

Australian Catholic Super (ACS) has awarded Parametric with another $60 million to manage under its tax-managed indexing (TMI) strategy, as the fund re-commits to the strategy it began in early 2016.

The original agreement saw ACS offer Parametric a TMI mandate for part of its international equities portfolio with the intent of offering fresh solutions to boost members’ net returns.

“We wanted a stronger focus on net returns, as opposed to gross returns, as we know this is what improves members’ retirement incomes,” ACS chief executive, Greg Cantor said.

“We pride ourselves on being an innovative fund that is always looking to find fresh ways to improve member returns, and the TMI strategy reflects this approach.”

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Parametric’s Australasian CEO, Chris Briant, welcomed the mandate, which reaffirmed the Australian relevance of the TMI strategy that was prevalent in the US.

“To be recognised by ACS for our after-tax and implementation skills was important to us, so we are enormously pleased that two years on, ACS has decided to re-commit to the strategy,” he said.

“Parametric has been managing passive portfolios with an after-tax focus in the US since 1992, and we firmly believe that Australian super funds need to balance their appetite for more passive investment styles with a genuine after-tax investment focus.”