BNY Mellon provides full-service custody, tax, and fund administration services to multinational plan sponsors and fund managers, who manage tax-transparent pooled funds invested globally.

There are a range of tax-transparent cross-border pooling vehicles designed to allow multiple investors to co-invest their assets to achieve economies of scale while still preserving their beneficial tax treaty status. Tax-transparent vehicles serviced by BNY Mellon include Luxembourg's Fonds Commun de Placement, the Irish Common Contractual Fund, and in the Netherlands, Fonds voor Gemene Rekening.

In today's market environment, tax-exempt investors are keenly aware of the liquidity and performance implications that can arise from not reclaiming withholding taxes – for example, US dividends are subject to a 30% withholding tax when treaty exemption is not claimed.

Kerry White, Managing Director, Global Product at BNY Mellon Asset Servicing, said: "We have been very encouraged by the general acceptance and growth of tax transparent pooling vehicles across the investment community in recent years. We have built a robust and scalable platform that can handle the many nuances and complexities of these sophisticated programmes, and so are well positioned to maintain our leadership position in this burgeoning market.”