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After-tax investing picks up speed
After-tax investing will become the norm in the next five years according to Kathy Taylor-Hofmann, head of GBST Quant division.
She said traction was building in the after-tax space and had been initiated by the superannuation funds, but was now being picked up by fund managers as well.
"In five years time, all the fund managers will be doing tax aware management, all the reporting will be on an after-tax basis and all the measurement will be on an after-tax basis," she said.
GBST Quant has provided the customised after-tax benchmarks for Russell Investments' inaugural after-tax survey, due to be released this month.
The survey would increase the available information in the after-tax space and encourage more after-tax investing, according to Taylor-Hofman.
"It's going to build that momentum towards that five year vision," she said.
Based on S&P/ASX 200 index and S&P/ASX Small Ords index data and calculated with Russell methodology, the data will allow funds to compare S&P/ASX indices on an after-tax basis.
Taylor-Hofmann said many super funds were carrying a big loss and had become more interested in the benefits of franking credits, which was the focus of the Russell survey.
GBST has also formed a strategic alliance with NAB Asset Servicing to strengthen Nab's tax and accounting offer to custody clients and for the provision of GBST's Pre-Trade Tax analyser tool.
Peter Hele, managing director of product and strategic alliances at NAB said, "superannuation funds have been looking to their custodians for solutions that will support themselves and their investment managers to better manage, monitor and measure the tax implications of their investments".
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