A recent ruling by the Danish National Tax Board will allow Denmark's institutional investors to benefit from dual taxation treaties and allows access to Northern Trust Asset Management's Common Contractural Fund (CCF).

The ruling will enable investors to obtain the same withholding tax rates as investing directly in equities. According to the Northern Trust, investors will have additional benefits of investment through a "pooled fund."

“The ruling from the Danish National Tax Board will now allow institutional investors to take full advantage of the dual taxation treaties – and we believe this translates to greater return potential and opportunities to achieve enhanced performance,” Northern Trust Asset Management's director of product development and sustainable investing Mamadou-Abou Sarr said in a statement.

Sarr said Northern Trust's CCF benefits institutional investors such as those in pension funds and insurance companies as they struggle with regulatory change.

“According to our research, based on data as of Oct. 31, 2017, by investing in a CCF, a Danish pension fund investing in a world equity index fund could achieve an uplift of 20 to 50 basis points, depending on the strategy, compared to investing in a non-tax-transparent vehicle," Sarr said.