SWITZERLAND - Credit Suisse Asset Management (CSAM) has launched two new tax efficient investment funds for Swiss pension funds.
CSAM said the passively managed funds – Credit Suisse Institutional Fund US Index – pension fund and Credit Suisse Institutional fund US Large Cap Index – pension fund – allow institutions to invest in the US stock market without the dividends of the investments being taxed at source by the US tax authorities.
“In general, dividend payments of US stocks in Swiss investment funds are taxed at source by the US tax authorities,” CSAM explained.
“According to the current bi-lateral tax agreements between Switzerland and the US, neither investment funds nor individuals investing in investment funds are able to reclaim these US taxes.”
This is even the case when the institution, for example Swiss pension funds, is not subject to pay tax on the dividends of direct investments in the US.
CSAM said the new funds offered Swiss pension funds the chance to invest in tax efficient pooled investment vehicles. In addition, the funds are, like other Swiss domiciled investment funds, exempt from Swiss stamp duty for both purchasing and selling of fund shares as well as for transactions on behalf of the fund.
The new funds are only available to Swiss pension funds that have an asset management mandate with CSAM. The products were launched as part of the existing umbrella fund Credit Suisse Institutional Fund.
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