Offshore funds offer the possibility of inhouse fund solutions instead of publicly distributable funds. Key terms in this regard are:
Mutual funds optimize the efficient use of existing research and investment expertise and resources for an investment professional. Distinguishing itself from other more traditional mutual funds, a properly structured offshore fund possesses a range of distinct characteristics:
A lower level of regulation enables much less complex processes of establishing and administering offshore funds, leading to a decrease in formation and operating costs. Reduced costs gives us the possibility to offer them at low load as well as with competitive management fees, which makes offshore funds very appealing for investors. Additionally, along with the lower level of regulations, greater flexibility, in terms of both the investment portfolio and the fund structure, is available.
Subcontracted administration, execution and shareholder relations make big back office operations obsolete. Since in this case, when investing in an offshore fund, investors will buy and hold shares, all of the contract notes, advices, statements and other client transaction paperwork, which usually accumulates in a discretionary managed account, may be dispensed with. Transactions between the investors and us are limited to Net Asset Value sheets on a regular basis and annual financial statements.
In conclusion, an offshore fund represents a viable and attractive proposition both from the investment professional’s and the investor’s point of view. The offshore fund’s cost efficiency means that a wide range of custom-designed funds may easily be created, meeting the needs of clients in every field and of all sizes.