Asset Management Exchange (AMX) has added tax transparent global equity vehicles to its range of investment funds to cut scheme costs and increase transparency across the industry.
The introduction of common contractual funds (CCFs) means pension schemes will be able to benefit from any tax exemptions when investing in global equities, while retaining the benefits of a pooled fund structure.
In a statement published today, the institutional investment marketplace said that by utilising the tax transparent, Irish pooled fund structure enabling look-through tax treatment, pension funds could save as much as 40 basis points on a typical active global equity product.
Commenting on the announcement AMX global head Oliver Jaegemann explained that as a large proportion of pension schemes are "significantly invested in global equities", making up some 61% of total equity allocation, there is a need to address any inefficiencies in how they might be investing.
"Some schemes are simply unaware of the implications of withholding tax structures. In part, this is because more traditional fund structures tend to be opaque from a tax perspective.
"By launching CCFs on the AMX platform, we are giving investors access to the benefits of pooled fund structures, while protecting their tax status", he continued. "For managers, the centralised process, reduced administrative burden and consistent, standardised reporting removes significant barriers to accessing CCFs."
The global institutional asset management marketplace was launched by Willis Towers Watson in February 2017 to reduce cost and resource duplication for schemes.
Government promises to unleash net-zero investment blitz with '10 Point Plan' for 'Green Industrial Revolution'
Carbon capture, hydrogen, nuclear, electric vehicles (EVs) and renewables all set to benefit from £12bn government stimulus plan, but critics warn funding falls well short of the level required to trigger a green recovery.
Claudia Chapman sets out why schemes should look at expand their stewardship reporting and learn from best practice.
In this live blog, Professional Pensions' sister title Investment Week collates all the breaking market news, analysis and opinion on equity, bond and currency movements as well as the impact of trade wars, tightening monetary policy and the Brexit negotiations....
PensionBee is planning to roll out its fossil fuel-free fund by the end of this year after receiving £31m in fund commitments from customers in under a week.
Brunel Pension Partnership has launched two investment vehicles to target infrastructure assets that meet Paris Agreement objectives for its partner funds.