Robeco has launched a new authorised contractual scheme (ACS), a UK tax transparent fund designed to host institutional investors engaging in asset pooling.
The ACS, which has been seeded by the Environment Agency Pension Fund (EAPF), is a UK version of the Dutch Tax Transparent Fund (FAR), offering investors the benefits of a tax optimised pooled investment fund that delivers as many of the favourable withholding tax rates of UK institutional investors as is possible.
Robeco says that by investing in this pooled vehicle, institutional asset owners will be relieved of the administrative and operational complexities involved in maintaining a mandate.
The Robeco ACS uses Link Asset Services as the ACS manager and Northern Trust as depositary, administrative agent and transfer agent.
Robeco UK head Peter Walsh says: “We believe that as well as offering strong investment strategies and quality services to clients, it is crucial to be able to deliver these to clients in the most appropriate vehicles possible. This ACS allows us to take advantage of the unique benefits provided by a pooled investment, and create a highly tax efficient proposition that utilizes the opportunities afforded to pension funds through tax treaties across the world.”
Environment Agency Pension Fund (EAPF) chief pensions officer Craig Martin says: “In 2017 the EAPF ran a search for a manager to provide what we term sustainable enhanced value equities. Robeco were selected for their ability to use quantitative investment techniques to provide a low carbon approach to value investing, within a low cost, tax efficient, pooled fund solution. Robeco understand both sustainability and factor investing, so it is pleasing to see them innovate with structures to help deliver good investment performance for our Fund.”
Peter Hugh Smith, managing director of Link Fund Solutions, part of Link Asset Services, says: “We are delighted to have been selected by Robeco to launch and act as the ACS Manager to their new UK ACS structure. We look forward to working closely with them as they continue to grow their UK franchise”
Northern Trust head of global fund services for Europe, Middle East and Africa Clive Bellows says: “We are pleased to support Robeco in the innovative launch of their UK tax transparent fund. Through our focused teams, and expertise in administering ACS funds, we are committed to working closely with Robeco to ensure our solutions continue to meet their evolving requirements.”
