The Association of Superannuation Funds of Australia (ASFA) and the FTSE Group have launched the FTSE ASFA Australia Index Series, claimed to be the industry standard tax-adjusted benchmarks for Australian investors.
The development of the 36-index series was spearheaded by super funds’ demand for benchmarks that allow them to assess portfolio performance on an after-tax basis, according to ASFA chief executive Pauline Vamos.
It addresses the need for super fund managers to better align investment decisions with their tax positions, providing options for different tax categories, including tax exempt, superannuation funds, mid-tax bracket and high-tax bracket.
“We see tremendous benefit [in super funds adopting these tax-adjusted benchmarks and progressing] the dialogue with their fund managers around tax aware decision making and after-tax reporting, particularly as the industry continues its push towards compulsory after-tax reporting.”
The series can also be used as the basis for the creation of index-linked products such as exchange-traded funds, structured products and other derivatives, Vamos said.
Additionally, she said investors have a new formidable alternative for non tax-adjusted Australian equity benchmarks, which are part of the FTSE ASFA Australia Index Series.
An as yet independent committee of senior superannuation investment professionals and finance industry experts will govern the ongoing management of the series.
