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.
