Solution introduction
Highly customisable Australian and global after-tax benchmarks and analytics that assist organisations to measure and improve investment manager performance and the returns delivered to unit holders and members
In a market where investment returns are under pressure and member returns are paramount, benchmarking and portfolio performance reporting is more crucial than ever
Building on Australian and global benchmarks from leading providers with our unique tax expertise, GBST's solution transforms pre-tax benchmarks and portfolio results into post-tax benchmarks and portfolio outcomes. This ensures your reporting considers the benefit of the franking credit uplift and the impact of Capital Gains Tax (CGT), both on a realised and unrealised basis, for complete transparency. Our After-Tax Benchmarking and Analytics service provides funds with detailed and accurate insight into the performance of your investment managers. It also supports a ‘whole of fund’ view of tax optimisation enabling you to deliver tax-aware, improved member outcomes. This enables you to lead the industry and ensure that your members know the value that your fund and managers are adding through optimal tax management processes and expertise.
Utilising our sophisticated performance and reporting engine, we work with leaders in the index space to provide the foundations of our After-Tax Benchmark and Analytics service, including:
- Standard & Poor – GBST was one of the first organisations to work with S&P to develop a grossed up franking credit benchmark, and we now provide its clients with replicated after-tax benchmarks.
- MSCI – we partnered with MSCI to extend our after-tax benchmarks to include global equities indices, and support numerous funds already using their pre-tax indices.
- Warakirri Asset Management – we are proud to be the calculation engine behind the after-tax benchmarks used by Warakirri, implementing their proprietary after-tax methodology for their After-Tax Performance Reporting service.
Transparent after-tax insights
The solution facilities:
- Accountability of specific portfolio cash flows
- Reflection on the realised and unrealised CGT outcomes
- The tax consequences of corporate actions and franking credits
- The CGT impact of rebalancing from composition changes of the underlying index
- Exclusion of investors’ discretionary portfolio management actions
- The application of various tax rates in-line with the underlying tax outcomes
- Producing the most accurate benchmark in-line with Australian tax compliance rules.
