Offshore accounts
An offshore fund is a collective investment scheme domiciled in an Offshore Financial Centre, for example the Isle of Man, the Channel Islands or the Cayman Islands. These international investment funds offer a number of advantages to those who put their money into the schemes.
Who are offshore funds for?
Offshore funds can be attractive investment options for expatriates who want to invest their money while living and/or working abroad. You do not need substantial amounts of money to invest in many offshore funds, which means that they are a good investment vehicle for most people who decide to make the move abroad.
There are a range of offshore funds available to you, so you should be able to find one that suits your needs. From growth funds to income funds and multi-strategy funds, there will be something that can fit in with your financial plans and requirements.
How do offshore funds work?
When you invest in an offshore fund, you are pooling your money with other investors. This means that you do not need substantial amounts of money to enter into the fund as the collective nature of these international investments allows you to increase your purchasing power.
This will give you access to a wider range of financial markets and investment opportunities than would be possible on your own. If you decide to put your money in an international investment vehicle such as those offered by Lloyds TSB Offshore Fund Managers Limited, then you can rest assured that you are investing with a company who understand the needs of customers living or working abroad.
Each offshore fund appoints an experienced investment manager who has an excellent understanding of market conditions. Their knowledge of financial markets allows them to invest your money in the most effective way to deliver the best possible return on your investment.
Funds are structured in different ways to provide investors with options ranging from regular income to capital growth. Income funds may offer monthly or quarterly dividends, while capital growth funds take a more long-term position (usually 5-10 years) and may provide you with an increase in capital return many years after you set it up.
Of course, you should always remember that the value of shares in these funds and any income from them can go down as well as up and cannot be guaranteed.
What are the advantages of offshore funds?
There are a number of reasons that offshore funds may be a good investment option for expatriates. One of the main reasons that people are attracted to offshore funds is their potentially favourable tax conditions which could benefit you depending on your specific circumstances.
You should always seek independent tax advice on your personal situation from a qualified tax adviser. An offshore fund manager such as Lloyds TSB Offshore Fund Managers Limited understands the needs of those living and working abroad, and could offer a wider range of currencies.
It is always worth considering placing an investment in a currency that matches your income or savings to avoid any exchange rate fluctuations. Some of the funds also allow the facility to change the currency of your investment during the term which could benefit you depending on your personal circumstances.
To find out more, visit Lloyds TSB International.
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