Parametric wins tax-managed mandate
Global specialist implementation manager, Parametric has been awarded a $200 million custom global equities mandate by a large Australian superannuation fund which requested anonymity.
Under the terms of the deal, Parametric would create for a fund a portfolio, factoring in exposures to particular risk factors in global equity markets and address concerns.
The super fund also asked Parametric to manage real-world implementation frictions, including tax.
Chief executive of Parametric Australia, Chris Briant, described the deal as a breakthrough in the industry.
“In our discussions with super funds, we’ve seen interest in after-tax investing and factor investing as separate themes growing, so it was only a matter of time before they came together as a powerful solution,” he said.
“We’ve seen huge growth in the US for factor approaches and now around USD4 billion of our total USD230 billion in funds under management globally are in portfolios that reflect our clients’ preferences around factor exposures.”
Briant also said he was positive about winning similar future mandates.
“Super funds and their advisers have their own smart ideas about what kinds of portfolios they want. Sometimes a traditional manager will be best to make these ideas real. But sometimes, like here, what the fund will really need is a specialist implementation manager that can maximise transparency and minimise the costs of translating good ideas into a real-world portfolio.”
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.