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Asset Managers

Tax reclamation is an important issue for professional money managers for two reasons. First, any excess withholdings that are recovered directly enhance the performance of the portfolio. In most markets the level of withholding is much higher than the treaty rate, which means reclaiming these entitlements can add 25-150 basis points or more in performance (dependent on the portfolio). Second, managers must ensure that they are fulfilling their fiduciary responsibility and making sure that clients are receiving their full entitlements in today's regulatory environment.

Generally, Mutual Funds can claim at the fund level rather than at the individual level of each member within the fund. It is not enough anymore to presume that the fund's custodian is doing the job. Fund managers in many countries are required by law to report performance and many fail to include otherwise recoverable taxes in their statements. This places responsibility with the fund manager for checking how well the job is being done.

As independent experts, GlobeTax can evaluate how well the custodian is performing reclaim services so mutual fund managers can ascertain whether they are receiving all excess withholdings to which the fund is entitled.

For separately managed accounts GlobeTax has relationships with numerous custodians and brokers whose clients we service on a case-by-case basis. Managers who believe or know that there is a possibility of tax reclamation for particular accounts refer their clients (and their client's advisers) to GlobeTax and we contract with them directly, performing reclaim services on their behalf and depositing the money directly back into their accounts. To request a free analysis, click here.







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