Funds managers urged to speak on tax
Australian funds managers have been warned they will need to become more active in stating their position on the Resources Super Profits Tax.
A portfolio manager for boutique funds manager Private Portfolio Managers (PPM), Elton Doyle, said he is baffled by the lack of response by funds managers to the Government’s proposed super profits tax.
“There are some 900 Australian fund managers who will have an opinion on market related subjects, yet when a new tax is proposed that wiped billions from the market value of resources companies, threatens our nation’s reputation as a safe investment environment and leads to delays and possible cancellations of projects amounting to tens of millions of dollars, managers cannot find the words to register discontent,” he said.
Doyle said PPM expected the proposed tax to result in reduced corporate profits from resource companies and lower dividends for investors.
“The effects will not be confined to just the resource sector but the many industries servicing the sector, including banking, transport and construction,” he said.
Doyle said as a funds manager serving wealthier Australian families and charities, PPM did not see the issue as being confined to an elite class of billionaires in Australia.
He said on that basis the company was urging more involvement from the funds management sector in the debate.
AUTHOR
Mike Taylor
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