QIC backs tailored ATI solutions
Big Queensland institutional investor QIC has suggested superannuation funds could increase their return on funds by up to one per cent a year without increasing investment risk by implementing effective after-tax investment strategies (ATIs).
But QIC head of After-Tax Investing Raewyn Williams said that most investment managers still struggled to deliver effective after-tax investment strategies because the concept was difficult to implement in practice.
She said there was no one-size-fits-all ATI solution, and that it was QIC’s experience that the right ATI solution did not necessarily need to be complex.
“But it should be the best in the context of the superannuation fund’s broader investment targets, size, structure, risk parameters and budget,” Williams said.
She said it was also important that investment managers understood the difference between minimising tax and maximising after-tax outcomes.
Williams said QIC’s view was that that what fund members really wanted was not necessarily lower tax, but better overall after-tax investment outcomes.
AUTHOR
Mike Taylor
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