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 Our Research Based Approach 
 Imputation Credits 

Our approach:

Research shows that franking credits are not priced into the value of shares in Australia.  This is why we recommend holding a slightly greater higher allocation of Australian shares compared to international shares and property within portfolios.


The research:

The value of dividend imputation tax credits in Australia

Journal of Financial Economics

Damien Cannavan, Frank Finn and Stephen Gray

July 2004, Vol. 73, No. 1: 167-197


What the paper says: Franking (or imputation) credits are not priced into the value of shares. 


In the author's own words: "the implied value of tax credits has been insignificantly different from zero".

The next page in the research story - The Impact of Fees on Returns
Scott Francis' articles in the Eureka Report 

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