Fools Gold

Fool’s Gold? Linking a Tax Efficient Super Fund Equity Portfolio to Retirement Savings For Members

Our new research examines whether the benefits of tax efficiency in a super fund’s equity portfolio flow through to the option unit prices their members experience. Because future (deferred) taxes are deducted from option prices, the concern is that higher portfolio-level after-tax returns from tax efficiency is like “fool’s gold” because members give back these benefits before accessing their retirement savings. We model separate tax efficient and tax naïve scenarios through the working lives and retirement of three hypothetical fund members to show how a super fund’s tax efficient equity portfolio builds higher retirement savings for members.

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Paul Bouchey
Paul Bouchey, CFA
Chief Investment Officer
Paul Bouchey
Paul Bouchey, CFA
Raewyn Williams
Raewyn Williams

Managing Director

Research

+61 434 372 210
Raewyn Williams
Raewyn Williams
Tim Li
Tianchuan Li
Researcher
Tim Li
Tianchuan Li
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