Warakirri Australian Equities Pensions and Charities Fund

The Warakirri Australian Equities Pensions and Charities Fund ("WAEPCF") was established in 2008. The WAEPCF has been developed to manage Australian equities from the perspective of a tax-exempt investor that can benefit fully from franking credits. It has been designed specifically for superannuation members in pension phase and charitable investors. 

The fund builds upon both Warakirri's long-term experience in managing multi-manager Australian equities portfolios, as well as our initiatives in after-tax investment management and reporting.  The WAEPCF invests with high quality Australian equities investment managers that, drawing from experience, Warakirri has identified as having the ability to manage tax-exempt investments.

Fund Objective

To outperform an after-tax benchmark based on the S&P/ASX 300 Accumulation Index net of fees and tax over time.

Investment approach

Having successfully managed tax-exempt products through our Charitable Trusts since 1993, Warakirri believes there are important considerations that can increase after-tax investment returns for tax-exempt investors, including:

• Franking credits are more valuable for tax-exempt investors as they can claim back the full value in cash.

• Tax-exempt investors are not subject to capital gains tax so managers are not constrained by the tax-related performance considerations relating to turnover.

• Off-market share buybacks are generally structured such that tax-exempt investors have the opportunity to earn a greater potential return than taxable investors.

The fund is operated as a pooled trust which is an efficient vehicle for the management of tax-exempt assets.  As tax-exempt investors do not pay capital gains tax, investors do not face the issues that impact taxable investors as unit holders.

For further information, a copy of the fund's Information Memorandum or a performance summary, please contact us.