FTSE All-World ex Australia Net Tax (Super) Index Series is a new global equities index series specifically for Australian superannuation funds
Benchmark measures true performance of global equities on an after-tax basis for the superannuation industry
Better reflects equity returns for superannuation members
Developed in conjunction with Qantas Super, one of Australia’s largest corporate superannuation funds
FTSE Russell, the global index provider, introduces the FTSE All-World ex Australia Net Tax (Super) Index Series which is designed to support the superannuation industry’s focus towards greater transparency and more accurate measurement of performance.
The index series calculates net returns for global equities after deducting both capital gains tax and withholding tax. Capital gains tax is applied in the same way superannuation members are taxed through their investment returns. The withholding tax rates reflect the Australian superannuation tax treaty rates that apply to each market.
A robust index, such as the FTSE All-World ex Australia Net Tax (Super) Index Series tailored for superannuation funds, enables funds to accurately measure after-tax investment performance against an
after-tax industry benchmark that is representative of the tax in superannuation member returns.
The index series was developed in conjunction with one of Australia’s largest corporate super funds, Qantas Super. The fund currently has $7.65 billion assets under management, and is a strong advocate for tax-efficient investing.
Jessie Pak, Managing Director Asia, FTSE Russell, said:
“FTSE Russell has a strong track record of calculating net-of-tax total return indexes for different investor types, the newest of which is for Australian superannuation funds. Providing our clients with indexes that take into consideration superannuation tax rates reduces the tracking error between a fund and the index, therefore providing a more accurate measure of the fund’s performance.”
Michael Clancy, Chief Executive Officer, Qantas Super, said:
“Tax is one of the largest costs of investing, so managing our members’ assets in a tax-efficient way is really important. By doing so, we seek to improve investment outcomes for our members and build their confidence in their financial future. At Qantas Super, we identified the need for a global index that incorporates the tax impacts that apply to members of Australian superannuation funds and worked with FTSE Russell for a solution. This new index series is a terrific tool to help superannuation funds understand and manage the impact tax has on investment outcomes. FTSE Russell was a superb partner in bringing this idea to life.”
A Withholding Tax Rates guide is available for more detailed methodology construction:
For further information:
Lucie Holloway: +44 (0)20 7797 1222 / firstname.lastname@example.org
Laura McCrackle: +61 2 8823 3526
Fennie Wong: +852 2164 3267
Notes to editors:
FTSE Russell is a leading global provider creating and managing a wide range of indexes, data and analytic solutions to meet client needs across asset classes, style and strategies. Covering 98% of the investable market, FTSE Russell indexes offer a true picture of global markets, combined with the specialist knowledge gained from developing local benchmarks around the world.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. More than $15 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create investment funds, ETFs, structured products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on index innovation and customer partnership applying the highest industry standards and embracing the IOSCO Principles. FTSE Russell is wholly owned by the London Stock Exchange Group.
For more information, visit www.ftserussell.com.
© 2018 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.
FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.
All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this communication should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.