OptiMix launches tax and dividend optimisation strategy
ING Australia has introduced a tax and dividend optimisation strategy (TDOS) to the wholesale Australian Equities portfolio within its OptiMix range of specialist multi-manager funds.
The TDOS strategy is an overlay on the multi-manager portfolio that optimises the tax and income objectives of the multi-manager portfolio from a post tax perspective, according to Emmanuel Calligeris, chief investment officer of ING’s Multi Strategies Group, which is responsible for implementing the strategy.
“Managers in the line-up pursuing alpha objectives can often compromise the tax and income objectives of the multi-manager portfolio, resulting in poorer after-tax returns."
Calligeris said approximately 5 per cent of the total Wholesale Australian Equities portfolio would be allocated to the TDOS strategy.
“This allocation has an effective tax enhancement equivalent to almost a 15 per cent allocation to a typical dividend imputation strategy.
“This strategy will mean the franking credit yield and dividend yield of the portfolio will exceed the index and peer average on a consistent basis,” he said.
AUTHOR
Recommended for you
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
The central bank has announced its latest rate decision amid stubborn inflation and increasing geopolitical tension.
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
