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- Warakirri Asset Management appointed to analyse fund managers’ tax efficiency
As the focus on after-tax investment performance gathers pace, Mercer has appointed Warakirri Asset Management to analyse the tax efficiency of its Australian shares managers.
According to Andrew Howard, Mercer’s Chief Investment Officer for Asia Pacific, after-tax investment performance is increasingly in the sights of fund managers and superannuation trustees.
“Last year's Cooper Review highlighted after-tax investing as an area that investment managers and trustees should give more attention to, as a matter of good governance. Mercer recently prepared a paper on the issue, calling for the focus on investment performance to shift from the traditional pre-tax returns to risk-adjusted, after-tax returns.
“The next step is to turn the discussion into action, which is why we have appointed Warakirri to analyse our underlying Australian shares managers in terms of their after-tax performance ,” Mr Howard said.
This analysis will allow Mercer’s Investment Management business to better gauge each managers' after-tax management capabilities and performance.
“This service will create a more level playing field when considering performance, by providing ongoing reporting against customised benchmarks and a more accurate reflection of each manager's tax efficiency. Ultimately, it’s about identifying the best investment performance, with the most complete data available to us,” Mr Howard said.
Mercer is a leading global provider of consulting, outsourcing and investment services. Mercer works with clients to solve their most complex benefit and human capital issues, designing and helping manage health, retirement and other benefits. It is a leader in benefit outsourcing. Mercer’s investment services include investment consulting and multi-manager investment management. Mercer’s 20,000 employees are based in more than 40 countries. The company is a wholly owned subsidiary of Marsh & McLennan Companies, Inc., which lists its stock (ticker symbol: MMC) on the New York and Chicago stock exchanges.