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Qantas Super and Parametric celebrate 10 years of pioneering partnership

30 Aug 2022
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Paul Bouchey

Qantas Super and Parametric are celebrating the 10th anniversary of their partnership, which has produced enhanced benefits to members each year.

A decade of tax-efficient investment implementation at Qantas Super, working in partnership with global implementation manager Parametric, has delivered significant long-term benefits for Qantas Super members.

Parametric’s Centralised Portfolio Management (CPM) approach separates the idea generation function of portfolio management from the implementation. Centralising the implementation stops leakage from transaction costs, redundant trading and tax inefficiencies.

Parametric is part of Morgan Stanley Investment Management.

Parametric’s Global Head of Research Paul Bouchey said: “Qantas Super was a bold leader in being the first Australian superannuation fund to adopt tax-managed centralised portfolio management at a time when the industry was reluctant to embed tax considerations into investment thinking.

“For a long time, there has been a misalignment in the industry, where investment practices are based on pre-tax principles but retirement outcomes are built on after-tax dollars. The idea of after-tax investing is well accepted but minimally used in practice. There is a big opportunity still to be exploited by most funds.

“The CPM partnership has delivered an estimated saving of A$258 million for Qantas Super members in just under 10 years (till the end of June 2022) across Australian and Global equities portfolios,” added Bouchey.

In 2016, Qantas Super extended the relationship by appointing Parametric as its overlay manager.

The chief investment officer of Qantas Super, Andrew Spence, noted: “Our members have strongly benefited from being part of a CPM structure for listed equities. Implementation efficiency is one of our core investment beliefs and that focus on the effective management of investment expenses, such as fees, taxes and transaction costs, led us to Parametric.”

Daniel Vanden Boom, Managing Director at Morgan Stanley Investment Management Australia said: “We are very pleased to be able to celebrate this milestone and look forward to providing many more years of excellent service to Qantas Super and its members.”

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