Australian custodian NAB Asset Servicing, a division of National Australia Bank (NAB), has implemented DST Global Solutions Investment Management Solutions’ (IMS) HiPortfolio propagation functionality for tax and accounting. Jointly developed by NAB and DST Global Solutions IMS, the administration enhancement will be used at a legal entity level for one of NAB’s largest superannuation fund clients in order to help optimise tax parcels and reduce the fund’s tax liability.
Ray Lester, general manager, delivery services and project sponsor at NAB, described the benefits of this first-to-market solution: “By working at the propagated level, tax parcels are chosen from a greater pool and can therefore be selected in a manner that produces a lower total capital gains tax figure. This enables us to maintain an advantageous tax position for our clients.
“Previously, sub-portfolios were created to allow investment decisions of a reporting entity to be delegated to their various investment managers. These were sub-sets of the total holding of the entity, and often individual managers would hold parcels of the same security as their counterparts,” he added. “Because of this segregation, parcel selection for capital gains tax was only able to be applied using the parcels available to each manager individually. Now, propagation will group the parcels of linked sub-portfolios and allow the tax allocation method to be applied to all parcels.”
The implementation is the culmination of a two-year software development project. NAB worked with DST Global Solutions IMS in its implementation. With the first successful implementation of its kind in Australia, NAB anticipates having a unique advantage in the competitive custody market. NAB is now looking to progressively roll-out the system across its entire client base as the potential tax savings through propagation for large superannuation funds are substantial.
A report by broking group Marsh examines the repercussions from the administration of the South Korean company, which filed for bankruptcy protection at the end of August.
Global research by C2FO suggests that smaller businesses are less concerned with the repercussions of Brexit and the upcoming US presidential election.
A squeeze on skilled talent means it now takes an average of seven weeks to fill open permanent roles in finance in the UK according to new research from financial services recruitment firm Robert Half.
Early-stage merger and acquisition deals in Asia-Pacific show nearly 10% year-on-year growth in recent months.