Catholic Super appoints after-tax analyst

Catholic Super has appointed Parametric Portfolio Associates to provide it with after-tax performance services.

Parametric, a majority-owned subsidiary of UB-based Eaton Vance Corporation, will measure the after-tax returns for six of Catholic Super’s active Australian equity managers. Parametric will also construct after-tax indices for Catholic Super’s equity managers, so that the fund can observe the after-tax and stock selection alpha delivered by each manager.

Catholic Super chief investment manager Garrie Lette said the benchmark created for each manager would “reflect the history of each of their individual mandates”.

The fund had long held the view that returns should be measured on an after-tax basis because that is what matters to members, Lette added.

“The Australian superannuation industry is moving towards a greater emphasis on after-tax returns, with the Cooper Review recommending that fund trustees should have express regard for tax consequences,” Lette said.

Parametric chief executive Brian Langstraat said his company had 20 years experience in measuring after-tax returns for thousands of equity portfolios and custom benchmarks.

“Australia is a very important market for Parametric and we are fully committed to building our operation and presence here, drawing on our direct research and technology experience in the after-tax space,” Langstraat said.