FTSE ASFA Australia Index Series
Contact FTSE Russell:
(02) 8823 3521
For a clearer picture of performance
Superannuation funds in Australia rely on indices to benchmark their fund's performance, communicate this to their members, and to assess the performance of their fund managers. Traditionally, superannuation funds have used indices calculated on a pre-tax basis for benchmarking purposes. This can create a misalignment between superannuation funds and their fund managers as some investment decisions are attractive on a pre-tax basis but harm after-tax performance.
As a result, an increasing number of superannuation funds are
now measuring their fund managers on an after-tax basis using
the FTSE ASFA Australia Index Series. The FTSE ASFA Australia
Index Series provides a range of benchmarking solutions for
superannuation funds, institutional and retail investors to
better align investment decisions with tax positions.
Now available: FTSE ASFA capital gains tax indices
Since the 2009 launch of the original FTSE ASFA tax-adjusted
indices which calculate the effects of franking credits and off
-market buy-backs, a significant number of superannuation funds
have supported the need for a benchmark which also includes
capital gains tax in order to facilitate after-tax assessments
on a far more granular level.
FTSE, in conjunction with the FTSE ASFA Advisory Committee,
undertook an extensive study of the effects of capital gains tax
on a portfolio and developed a unique methodology to calculate
both realised and unrealised capital gains tax. The new FTSE
ASFA capital gains tax indices also include the effects of
franking credits and off-market buy-backs.
The expansion of the FTSE ASFA Australia Index Series now
provides greater flexibility, enabling superannuation funds to
select the after-tax benchmark that best suits their
requirements, whether it's franking credits, participation in
off-market buy-backs, capital gains tax, or all three.