Russell plugs after-tax reporting
Russell Investments has made another plug in favour of after-tax reporting on investments, arguing that it is a more serious consideration than active or passive.
Russell Investments' director of after-tax investment strategies, Raewyn Williams, said a new paper released by the company was aimed at educating investors to avoid oversimplifying tax implications when deciding between active and passive management.
“It is not correct to say that investors must choose between active/passive and efficient tax outcomes when they can have the best of both worlds,” Williams said.
She said there were really four options for investors depending on the tax approach such as active investing with active tax management, active investment with passive tax management, passive investing with active tax management and passive investing with passive tax management.
Williams said that while after-tax investing considerations should not completely take over the broader, pre-tax decision-making framework, investors should understand that it could have a significant impact on their investment outcome.
She said that suggestions after-tax investing could add 100 basis points a year to a superannuation fund’s returns were not unreasonable.
AUTHOR
Mike Taylor
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