It’s generally accepted that offshore funds offer investors a great way to invest assets offshore and benefit from the great potential tax saving opportunities available to them - however, international investing using offshore funds can provide many additional potential benefits to those seeking diversification in their portfolio.
An offshore fund is a centralised pool of money located in an offshore jurisdiction that has been funded by a series of individual or corporate investors who seek to gain more substantially through the pooling of their resources to invest in higher value investments than the individuals involved would normally be able to invest in alone.
The types of fund available, the sectors they invest in, the offshore jurisdictions where funds are located and the underlying fund managers dealing in such investment vehicles are as diverse as they are manifold and anyone looking for a fund to suit their requirements will likely find a plethora of possibilities.
Credenda Associates provide a wide range of popular products managed by leading offshore insurance companies in the highly regulated offshore centres of the Isle of Man, Dublin, British Channel Islands and Luxembourg. These locations offer the necessary investor protection to make certain investments are protected against corporate failure and fund mismanagement.
There are circa 80,000 funds traded worldwide and a large percentage of these are located offshore. Therefore to have access to the majority of funds available you quite simply need to join the offshore club.
Because of the removal of certain domestic restrictions relating to speculation it’s possible for the managers of many offshore and overseas funds to quickly and easily switch positions, to speculate and to accumulate far more substantial gains for the underlying investors.
Offshore fund managers can employ risk hedging techniques which are not permitted in many domestic markets thereby making some offshore funds safer and less volatile than onshore funds.
Placing funds offshore can add an extra and more opaque layer to transaction transparency and further potentially remove an investor’s exposure to litigious action or unwelcome attention from certain sources
Credenda Associates offer offshore investment funds that appeal to your appetite for risk exposure, that appeal to your personal circumstances and fulfill your current investment requirements
Due to the absence of tax liabilities, the return on investments within offshore locations like the Channel Islands or the Isle of Man will provide a higher return than an equivalent investment held in a conventionally taxed environment.
The choice of funds is wide ranging and includes funds managed by some of the world’s leading offshore fund managers, selected for consistent performance. Some of the offshore Investment fund management companies available through insurance bonds.
Fidelity, Invesco, HSBC, Jardine Fleming, Perpetual, Barings, New Star, Barclays and many more. International funds can be denominated in any of the major currencies from USD to GBP, from EUR to AUD.
Of course, we all have the same objective - 20% pa returns with no loss! However, in the real world, objectives boil down, quite simply, to income, growth or a combination of the two. If you have maximum income and no potential for growth then you are locking into a gradual decline in your standards simply because inflation will erode the value of both your income and your capital.
What are the benefits of using an Independent Financial Advisor when I can deal directly with an investment fund house?
Our high volume of business provides investors with reduced initial fees and management charges that are not directly available from the institution.
Does independent advice cost more?
Credenda Associates do not charge clients fees for investment advice. Clients enjoy the benefits of fund choice, service and independent advice by paying the fees charged by the selected fund house. Due to our volume we are often able to enhance your allocations too.
Who can benefit from offshore investment?
Anyone can benefit from the greater returns to be derived from offshore investments simply by choosing to invest offshore rather than onshore. But to benefit from the low individual taxation regimes available offshore, one of two things has to be true: either the individual must have residence offshore, or, for a resident in a high-tax area, there must be an offshore structure which distances offshore gains from the onshore tax net.
Why are investments regulated more than other types of purchase?
Regulation covers the avoidance of fraud (to protect investors from their own ignorance or cupidity), the avoidance of money-laundering (nothing to do with bona fide investors) and has prudential aspects, i.e. it tries to prevent investment managers from making risky investments that could lead to loss for investors. Regulators believe that people's savings are so important they must be given special protection.
Would offshore fund investment be suitable for me as an expatriate?
It would be ideal! Fund investment means that you can choose to invest in a particular class of assets without having to examine the characteristics of each asset individually, and if you choose to invest in an offshore mutual fund, the responsibility for the management, maintenance and administration is taken by the promoter, manager and custodian of the fund. There are various options, ranging from the ultra safe to the very aggressive, but the two main categories that offshore funds can be divided into are private funds (longer term investment, usually requiring more capital, but hopefully generating greater returns) and public funds (usually open-ended, so more flexible, and requiring less capital). Always depending on your original home tax regime, many expatriates will be able to receive dividends and capital returns from an offshore fund without paying tax while they remain non-resident.
Is investing in investment funds only for institutional and high net worth investors?
Not at all, investment Funds can be the most cost-effective way for individual investors to optimize their returns as well as diversify risks across many markets, investment levels are not high. Please contact us for more information.
Is investing in funds complicated?
We make it easy by offering you a consolidated service where you can invest in a wide range of funds through one account. This multi-manager approach can managed via internet and face to face methods.
Are investment funds risky?
Funds range from conservative money market funds to more aggressive equity funds. By nature, investment funds are effective in spreading risk as the investors’ money is pooled into a collective vehicle and invested into various securities. Funds authorised by financial authorities follow strict diversification guidelines, which normally restrict investments in any one security to prevent undue risk exposure.
How much control do I have over my investments?
You have full control. You decide on the fund mix and change when you wish. Investment information, transaction advice and consolidated statements are provided to help you keep track of your investments.
Who manages my investments?
Expert fund managers of the fund groups research the companies comprising the investment fund in order to ensure they offer excellent growth potential. A fund manager also alters the composition of the fund by buying and selling the individual holding to maximize the return.
I have existing funds and would like to know where to get the latest prices or a valuation?
We can provide the latest fund sheets in most cases.
Already have holdings in a fund and wish to top-up the portfolio, can I do this with you?
Yes you can indeed. Please use our enquiry form and we will send relevant information.
I am looking at particular funds but want to gather all the relevant facts. Can you provide this information?
Yes, we can make available to you the information required to assist your decision.
I don’t have much capital so I would like to save money on a regular basis but don’t really know how to go about it?
The most popular method is to use a regular savings investment program from a fund group. Please look at our section on this subject or email us using our enquiry form.
When should I invest?
Many people have experienced the stress involved in second guessing the financial markets. They buy close to market highs and sell close to market lows. The timing of a short term investment is critical and can make a significant difference to its performance. A particular adventurous investment might double in value over three years but, after the first six months, it might have halved. So, the end result is extremely satisfactory, but is no good to you at all if you would have panicked at the six month point and sold the investment at a 50% loss. To benefit from the full potential of the financial markets investors must stay invested during the ups and down's of the financial markets. Investors should stay invested for at least 5 years and preferably longer.
What is the Investment risk?
Experienced expatriate investors understand it is necessary to take risks to achieve potentially higher returns than leaving their money on deposit in a bank. Investors who cannot accept the potential for losses in the early years of an investment should choose funds from low risk categories.
What are the risk factors?
Nearly anything you might do with your money involves risk. The key is to understand, limit and manage risk in such a way as to accomplish your objectives no matter what happens. There is no investment that does not have one or more elements of risk. Yet, some of those with significant risk, such as real estate, common stock and closely held businesses, have the greatest potential for return. The only solution is to diversify, spread your funds around, carefully balancing one risk against another.
Will today’s money buy as much in the future?
Almost certainly not. The risk that it will not is inflation risk. Just look at the costs of the many items you use every day. Compare their costs today with the costs of ten, twenty or thirty years ago. The costs of housing, automobiles, utilities, food, clothing, theater tickets, all have increased substantially through the years. Inflation robs the value of a fixed investment which stays level, such as bank savings accounts, hence the need to invest in areas that outstrip inflation.
What is Market Fluctuation?
This is the risk that the real estate, limited partnership interest, stock, bond, or investment company shares which you have purchased will go down in market value after you purchase them. The market in general may fall and then rise, but your specific investment could fall and then not rise!
I really don’t like to save money in a bank, what else is there?
We offer a range of guaranteed funds that "lock-in" gains and "lock-out" losses on a range of index, using these funds you can now completely control the levels of risks of your investment exposures.
