Institutional investors in Denmark now have access to the tax-transparent benefits of Northern Trust Asset Management’s Common Contractual Fund (CCF) solutions, following a ruling by the Danish National Tax Board.
The tax-transparency of Northern Trust Asset Management’s CCF range is complemented by sustainability and the cost efficiency of a passive approach to investing, creating a compelling investment solution.
Confirmation of tax-transparency by local country tax authorities enables investors to obtain the same withholding tax rates as if they had invested directly in equities, with the added features of investing via a pooled fund – including tighter governance, better risk management, economies of scale and engagement.
“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,” says Mamadou-Abou Sarr (pictured), director of product development and sustainable investing at Northern Trust Asset Management. “According to our research, based on data as of 31 October 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.”