Amundi, the European asset manager, has opted to re-domicile seven additional Luxembourg-based exchange-traded funds to Ireland by December. This move, announced in separate shareholder notices issued in October, increases the total number of ETFs Amundi has said it would transfer to its Irish collective management vehicle to ten, in a strategic step to capitalise on Ireland’s lower withholding tax rate.
Of the seven ETFs planned for relocation, the Amundi Index MSCI North America ESG Broad CTB and Amundi Index MSCI USA SRI PAB will complete their transition on 10 November. Subsequently, the Lyxor MSCI USA ESG Leaders Extra, the Lyxor Net Zero 2050 S&P 500 Climate PAB and the Lyxor MSCI USA ESG Climate Transition CTB are set to finalise their moves on 24 November. Finally, the Amundi MSCI World Climate Paris Aligned PAB and Amundi MSCI World Climate Transition CTB will follow on 5 December 2023.
As of 7 November, the assets under management for these seven funds stood at $12.865bn.
The re-domiciling is part of Amundi’s broader strategy to centralise its assets on its Irish platform, with prior transitions having taken place throughout the current year. In July, the company relocated its €643m MSCI World ESG Leaders Select ETF to Ireland, followed by a transfer of €6.7bn in assets across two ETFs in the ensuing two months.
These latest transitions, an Amundi spokesperson told Delano on Tuesday, will bring the total number of its Ireland-based ETFs to ten, thereby reinforcing its commitment to the Irish market.
Amundi’s strategy leverages the favourable tax treaty between Ireland and the United States, where US equity ETFs domiciled in Ireland enjoy a withholding tax rate of just 15% on dividends, thanks to the Ireland-US double taxation agreement. This is significantly lower than the 30% rate applicable to ETFs based in Luxembourg, offering Amundi a considerable tax benefit.