Proof of performance: Aon
Rabobank leverages existing instruments to create innovative solutions. This innovativeness is reflected in a solution based on pooling funds from and for third parties that meets Aon’s particular needs. Rabobank and Aon employed a vehicle for this solution that pension funds also utilise: the mutual fund.
Rabobank leverages existing instruments to create innovative solutions. This innovativeness is reflected in a solution based on pooling funds from and for third parties that meets Aon’s particular needs. Rabobank and Aon employed a vehicle for this solution that pension funds also utilise: the mutual fund.
Aon and its advisors Florin Partners and Loyens & Loeff came up with the idea of dividing the ownership into an economic and a legal component. They developed a system whereby the legal ownership of the fiduciary funds is placed in a mutual fund (Fiduciary Cash Fund) and, separately from this, a custodian is appointed as the fiduciary of these funds.
Deal characteristics
- Opening a mutual fund in order to pool cash flows on a cross-border basis.
- Separating the economic and legal ownership of the cash flows.
- Placing legal ownership with the custodian of the cash.
- The participants in the cash pooling system remain the economic owner and as a result maintain the day-to-day control over the cash flows.
Deal in a nutshell
Aon wished to establish a cross-border cash pooling system for fidaciary funds.
The legal ownership of the fiduciary funds were placed with a mutual fund and a custodian as fiduciary of the funds in the account was appointed.
Aon EMEA Treasury, Rabobank Corporate Clients (Financial Logistics) and ATC Corporate Services.
Operational in 2008
Rotterdam