Index specialist FTSE Group and the Association of Superannuation Funds of Australia (ASFA) have launched a new series of tax-adjusted indices for domestic investors.
The FTSE ASFA Australia Index Series encompasses 36 benchmarks that will allow investors to assess the performance of their portfolios on a post-tax basis.
The development of the indices were mainly in response to superannuation funds that wanted benchmarks that allowed them to examine the after-tax returns of their portfolios.
“We worked closely with market participants at every stage of the design process and as a result we are confident this index series provides a better representation of the Australian equity market to assist investors in making tax-aware investment decisions,” FTSE Group deputy chief executive Donald Keith said.
Different tax categories have been included in the FTSE ASFA Australia Index Series, including tax exempt, superannuation funds, mid-tax bracket and high-tax bracket.
“As an industry, we are focussed on moving superannuation funds and fund managers towards after-tax reporting in a manner that is clear and consistent,” ASFA chief executive Pauline Vamos said.
“We see tremendous benefit for superannuation funds to adopt these tax-adjusted benchmarks and progress the dialogue with their fund managers around tax-aware decision making and after-tax reporting,” she said.
While tax-effective indices are one feature of the FTSE ASFA Australia Index Series, some new non-tax adjusted Australian equity benchmarks have also been included.
The ongoing management of the new index series will be performed by an independent committee to be made up of finance industry experts and superannuation investment professionals.
