December 26, 2019

Offshore Investment Fund


An offshore investment fund is a form of collective investment created in an offshore zone.

Such funds are formed under the jurisdiction of countries where the legal requirements for the composition of the investment portfolio are generally much less stringent. Therefore, hedge funds are most commonly registered in such zones.

Prifinance provides a complete tax planning and compliance solution for your jurisdictions that is valid for the duration of your offshore company. Specialists company have the knowledge to create and use offshore companies without fear of negative tax consequences from other jurisdictions, and their required tax documents are completed correctly and in a timely manner.

Given that a significant portion of assets may be invested in derivative financial instruments, the expected returns are much higher than the average expected returns in other markets. On the other hand, such investments are associated with significantly higher risks. A classic example of such a fund is the George Soros Quantum.

Often such financial institutions are created specifically for investments in developing countries - Brazil, Argentina, Asian states, Eastern Europe, etc. For example, for three years as of the beginning of 2011, the fund BNP Paribas L1 Equity Indonesia showed a yield of 230.9%, Findlay Park Latin American - 141.1%, Franklin Templeton Asian Smaller Companies - 135.2%.

Investments in such financial instruments are not intended for ordinary investors: as a rule, the market entry price is rather high and there is a high risk of financial losses. In addition, investments in foreign funds are subject to the restrictions of currency legislation.