Citigroup says it has created a pension pooling structure, using the Irish Common Contractual Fund (CCF) for UK fund manager Legal & General Investment Management (LGIM).
The CCF is a tax transparent mutual fund specifically designed by the Irish market participants and regulators to allow pension funds the benefits of asset aggregation and tax transparency across multiple funds in multiple jurisdictions.
“The CCF combines LGIM’s expertise in index fund management with Citigroup’s experience in fund services and custody,” says Mike Craston, Managing Director, Corporate Pensions, LGIM. “We have worked closely with Citigroup to establish the structure which provides our clients with a cost-effective, pooled solution with the benefit of tax transparency.”
The Citigroup plan is to enable LGIM to distribute the CCF to a large number of European pension fund clients, allowing them to realise their full entitlements under existing double taxation treaties.
“Leveraging a structure using the CCF allows LGIM to further enhance its leading index management service to European pension funds while marking an important initiative for Citigroup’s growing fund services business,” says Bernard Hanratty, Director, Citigroup Global Transaction Services.
Citigroup offers pension pooling services in the Luxembourg, Irish and Dutch markets for multi-nationals and fund managers.