BNY Mellon has been selected by BlackRock to provide custody, fund administration and trustee services for the UK’s first Tax Transparent Fund (TTF).
The first equity tracker fund from BlackRock will be offered to the company’s UK pension fund clients who are investing in US equities, with the expectation of the offer being extended to other asset classes in the future.
The launch of the BlackRock fund follows the introduction of the UK TTF in July 2013, which allows investors to maintain their tax position and access double taxation treaty benefits as if they had invested the assets directly.
BNY Mellon already has an existing relationship with BlackRock that encompasses custody, fund accounting and trustee services for investment manager’s onshore and offshore funds.
Tony Stenning, head of UK retail at BlackRock, said: “Given the ever increasing complexity for today's investors, delivering simple, transparent, tax efficient solutions has arguably never been more important.”
“The introduction of this new structure by the Treasury last year is an important step in the next generation of tax efficient solutions for UK investors. We also welcome the arrival of a level playing field, bringing the UK in line with other European fund centres."
Daron Pearce, head of investment management segment for investment services at BNY Mellon, said the selection by BlackRock “underlines BNY Mellon’s commitment to supporting clients as they look to innovate to provide investors with new investment avenues and opportunities.”
