- Warakirri Asset Management appointed to analyse fund managers’ tax efficiency
As the focus on after-tax investment performance gathers pace, Mercer has appointed Warakirri Asset Management to analyse the tax efficiency of its Australian shares managers.
According to Andrew Howard, Mercer’s Chief Investment Officer for Asia Pacific, after-tax investment performance is increasingly in the sights of fund managers and superannuation trustees.
“Last year's Cooper Review highlighted after-tax investing as an area that investment managers and trustees should give more attention to, as a matter of good governance. Mercer recently prepared a paper on the issue, calling for the focus on investment performance to shift from the traditional pre-tax returns to risk-adjusted, after-tax returns.
“The next step is to turn the discussion into action, which is why we have appointed Warakirri to analyse our underlying Australian shares managers in terms of their after-tax performance ,” Mr Howard said.
This analysis will allow Mercer’s Investment Management business to better gauge each managers' after-tax management capabilities and performance.
“This service will create a more level playing field when considering performance, by providing ongoing reporting against customised benchmarks and a more accurate reflection of each manager's tax efficiency. Ultimately, it’s about identifying the best investment performance, with the most complete data available to us,” Mr Howard said.
Mercer is a global leader in talent, health, retirement and investments. Mercer helps clients around the world advance the health, wealth and performance of their most vital asset – their people. Mercer’s 20,000 employees are based in 43 countries and the firm operates in over 140 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy and human capital. With 55,000 employees worldwide and annual revenue exceeding $12 billion, Marsh & McLennan Companies is also the parent company of Marsh, a global leader in insurance broking and risk management; Guy Carpenter, a global leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a global leader in management consulting. Follow Mercer on Twitter @MercerAU @MercerInsights