Sunsuper has chosen GBST to provide after-tax performance measures for two of the superannuation fund's Australian equities mandates.
The partnership supports Sunsuper's recent move to an after-tax performance objective based on underlying S&P/ASX pre-tax indices for its Australian equities mandates.
Sunsuper previously used the Association of Superannuation Funds of Australia (ASFA) FTSE benchmark but has moved to a customised benchmark with GBST after a 12-month consultation period.
Sunsuper's portfolio manager for Australian equities and hedge funds Bruce Tomlinson said it was a major decision that aligned with current market trends.
GBST Quant Division's Kathy Taylor-Hoffman said customised after-tax solutions aligned better with fund managers that used the S&P benchmark.
Taylor-Hoffman said clients often started using after-tax benchmarks before incorporating after-tax considerations more fully into their processes.
She said GBST's customisable after-tax services were directly contributing to the current appeal of the after-tax investment approach.
"We are delighted to be working with one of the earliest adopters of an after -tax performance measurement regime and enabling the evolution to a customisable after-tax benchmarking environment which we believe is more aligned with the fund manager's investment processes," she said.
GBST already provides after-tax services for a range of super funds and fund managers including Unisuper, Cbus and Warrakirri Asset Management.
Amid a challenging market environment, three super fund CIOs have warned against ‘jumping at shadows’.
The professional body is calling for the annual performance test to transition to a two-metric test, so it better aligns with the overarching duty of super fund trustees to act in the best financial interests of their members.
AustralianSuper, Rest, and HESTA agree on the need to retain and enhance the test, yet they differ in their perspectives on the specific areas that warrant further refinement.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
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