615:), and non-public funds. Non-public funds are usually either categorised as private funds or professional funds or some equivalent label. Typically, investors in non-public funds can be assumed to be sophisticated because of the nature of the offering – there may, for example, be a high minimum initial investment, say US$ 100,000, and/or a requirement that investors establish that they are "professional investors" (although some offshore jurisdictions allow investors to self-certify this). Alternatively the fund may be designed for a small and select group of investors and the constitutional documents will limit the number of investors, say to no more than 50. Although most offshore jurisdictions permit funds to obtain licences to operate as public funds, the onerous regulatory requirements associated with such licences usually means that only a small minority of offshore funds are available for subscription by the general public.
649:
from taxes which may arise as a result of its investment activities in other countries. So, for example, if a fund formed in the Cayman
Islands realises a capital gain on trade in New York, it will still normally be liable for U.S. capital gains tax in the usual way. Similarly, if a person domiciled in the United Kingdom invests in a Guernsey fund, they will still be liable to taxation of income and capital gains received under British tax laws (subject to the rules on remittance of foreign earned income), notwithstanding the absence of any taxation imposed in Guernsey.
28:
1366:
1374:
169:(AUM). However, different sources may vary in relation to market share according to (i) which jurisdictions are considered to be "offshore" and which types of collective investment schemes are included. In relation to hedge funds (the archetypal offshore fund product) Cayman has a dominant market share.
156:
Most jurisdictions also require that offshore funds submit audited accounts to the regulatory annually. Almost all jurisdictions require directors of offshore funds to satisfy regulatory criteria in relation to fit and proper persons, but some jurisdictions also require directors to be separately
99:
Although the term is often used as a simply descriptive one, many onshore countries have specific definitions in their legislation or their tax codes for when an investment is treated as an offshore fund. For example, in the United
Kingdom see the Offshore Funds (Tax) Regulations 2009, and in the
648:
Typically the offshore jurisdiction in which a fund is incorporated will not impose any direct taxation on the income of the fund. Nor will it impose any withholding or similar income taxes on distributions by the fund to its investors. However, this does not normally operate to exempt the fund
657:
Different onshore countries treat income arising from offshore funds in different ways. US citizens are generally subject to taxation on foreign earned investment income regardless of where they live in the world and where the income is remitted to. Under
British tax rules, the taxability of
152:
In certain cases exemptions will be available. For example, feeder funds in a master-feeder structure are often exempted from the requirement to appoint a custodian, and the requirement to maintain a custodian may be waived where the prime broker also fulfils the role of custodian.
661:
There is a public perception that offshore investment funds are responsible for tax leakage in relation to cross border investment, and various laws have been passed by various countries shaped by that belief. Probably the best example of that is the
American
96:(where the investor cannot redeem out), and funds where the investment is structured by way of debt, are not normally subject to the usual regulatory requirements for investments funds, and so are not treated as funds in the stricter sense of that word.
618:
Most offshore domiciling of funds tends to be regulatory driven rather than tax driven. The relative absence of regulation relating to leveraging and investment strategies in offshore jurisdictions encourages higher risk funds, such as
610:
Typically, the regulatory regime will take a two tier approach, making a distinction between funds which are offered generally to members of the public (which will require a high degree of regulation because of the nature of potential
1353:
929:
See for example, in the Cayman
Islands, see the Mutual Funds Law, and in the British Virgin Islands, see the Securities and Investment Business Act 2010, each of which applies a three-tier regulatory approach in this
119:
In addition to the fund itself, most offshore funds are required by local regulations to have various functionaries most of whom are also required to be licensed under applicable legislation. These include:
671:
88:
Similarly, although the reference to fund can be taken to include any sort of collective investment, within offshore jurisdictions themselves, the term offshore fund is often limited to purely
631:
Increasingly, economically developed countries are imposing direct regulation on offshore funds who wish to market to investors in those countries. The most recent example of this is the
670:
to the
British Overseas Territories (including popular offshore fund domiciles like the Cayman Islands and the British Virgin Islands). The most recent (and ongoing) example is the
383:
Figures for private equity funds, an investment product with similar liquidity constraints, are markedly different, with
Delaware enjoying over half the market on either measure.
32:
92:(i.e. a fund where the investor can redeem his investment during the life of the fund) where the investment is by way of equity (rather than by debt). This is often because
1100:
993:
632:
897:
864:
1060:
81:. In the widest sense, offshore is sometimes used to include any type of cross border collective investment scheme, and popular fund domiciles such as
941:
116:
in the relevant jurisdiction, and investments will characteristically be by way of equitable interest (i.e. shares, partnership interests or units).
1369:
635:(AIFMD) which requires funds to comply with extensive rules and regulations in order to be able to market to investors within the European Union.
762:
For example, in the Cayman
Islands, see the Mutual Funds Law (2013 Revision), section 2 (definitions of "equity interest" and "mutual fund").
73:. However, the term is also frequently used to include other corporate domiciles popular for cross border investment structuring, such as
986:
663:
839:
607:
Most developed offshore jurisdictions provide a broadly similar regulatory regime in relation to funds formed in their country.
1377:
1197:
1127:
979:
667:
658:
foreign earned income depends upon the domicile of the tax payer and whether the funds are remitted to the United
Kingdom.
1085:
1343:
1106:
711:
58:", the term is more descriptive than definitive, and both the words 'offshore' and 'fund' may be construed differently.
44:
1278:
904:
871:
794:
1117:
1401:
1396:
1065:
1034:
716:
51:
1273:
1187:
61:
The reference to offshore, in the classic case, usually means a traditional offshore jurisdiction such as the
1406:
1348:
1333:
1307:
1302:
1152:
1080:
1022:
948:
166:
1328:
1242:
550:
542:
246:
238:
70:
1142:
1002:
85:
may be included within the definition of offshore, notwithstanding their substantial size as a country.
27:
1132:
1028:
817:
See for example
Securities and Investment Business Act 2010, section 61(1) (British Virgin Islands).
1095:
687:
125:
1297:
1207:
1172:
831:
1168:
835:
695:
772:
741:
1216:
1182:
1050:
699:
131:
109:
55:
1257:
1247:
1237:
1232:
1212:
1010:
143:
93:
1291:
1202:
1192:
460:
434:
210:
202:
137:
62:
47:
1390:
1287:
1252:
1137:
1112:
1040:
721:
89:
1338:
1283:
1090:
165:
Market share in offshore funds is normally measured either by number of funds or
1312:
1070:
691:
568:
560:
364:
354:
1177:
1147:
1055:
1045:
620:
496:
470:
318:
310:
113:
78:
17:
612:
674:
which almost every major offshore fund domicile has agreed to be bound by.
35:
has responsibility for oversight of investment funds in that jurisdiction.
452:
442:
424:
416:
346:
336:
228:
220:
74:
971:
532:
524:
514:
506:
300:
282:
274:
256:
82:
488:
478:
328:
264:
112:, partnership - typically a limited partnership - or (less commonly)
66:
666:(FATCA). But earlier examples also included the application of the
100:
United States see section 871 of the Internal Revenue Code of 1986.
1122:
683:
586:
578:
372:
292:
26:
975:
854:
Cayman Islands Director Registration and Licensing Law (2014)
672:
Convention on Mutual Administrative Assistance in Tax Matters
795:"US Regulatory and Tax Considerations for Offshore Funds"
148:(in certain jurisdictions) an authorised representative
686:(an NGO), alleged that they are a main player of the
396:
393:
182:
179:
33:
British Virgin Islands Financial Services Commission
1321:
1266:
1225:
1161:
1009:
1101:Qualifying investor alternative investment fund
633:Alternative Investment Fund Managers Directive
987:
623:, to form themselves in those jurisdictions.
8:
1061:Labour-sponsored venture capital corporation
388:Offshore private equity funds - market share
108:Most offshore funds are formed as either an
898:"Domiciles of Alternative Investment Funds"
865:"Domiciles of Alternative Investment Funds"
1373:
994:
980:
972:
903:. Oliver Wyman. p. 4. Archived from
870:. Oliver Wyman. p. 3. Archived from
407:
401:
385:
193:
187:
171:
773:"Offshore Funds (Tax) Regulations 2009"
733:
410:
404:
196:
190:
947:. Tax Adviser Magazine. Archived from
828:British Virgin Islands Commercial Law
694:, in particular through the usage of
7:
742:"Offshore Mutual Fund - definition"
174:Offshore hedge funds - market share
664:Foreign Account Tax Compliance Act
25:
1372:
1365:
1364:
1198:Socially responsible investing
1128:Split capital investment trust
668:European Union withholding tax
1:
1086:Open-ended investment company
940:Ray Magill (September 2011).
712:Collective investment schemes
94:closed-ended investment funds
1344:Returns-based style analysis
1107:Real estate investment trust
942:"Taxation of offshore funds"
590:
582:
572:
564:
554:
546:
536:
528:
518:
510:
500:
492:
482:
474:
464:
456:
446:
438:
428:
420:
376:
368:
358:
350:
340:
332:
322:
314:
304:
296:
286:
278:
268:
260:
250:
242:
232:
224:
214:
206:
45:collective investment scheme
1279:Efficient-market hypothesis
90:open-ended investment funds
1423:
1118:Short-term investment fund
717:Offshore Financial Centres
1362:
1066:Listed investment company
1035:Fonds commun de placement
161:Global market/world share
1274:Arbitrage pricing theory
920:. Figures are for 2010.
887:. Figures are for 2010.
1349:Traditional investments
1334:Commodity pool operator
1308:Noisy market hypothesis
1303:Modern portfolio theory
1153:Unitised insurance fund
1081:Open-ended fund company
1023:Common contractual fund
167:assets under management
1329:Alternative investment
1243:Institutional investor
551:British Virgin Islands
543:British Virgin Islands
247:British Virgin Islands
239:British Virgin Islands
71:British Virgin Islands
36:
1143:Unit investment trust
1003:Investment management
690:, allowing legalized
52:offshore jurisdiction
30:
1133:Tax transparent fund
1029:Exchange-traded fund
834:. 2012. para 6.077.
1188:Manager of managers
1096:Private-equity fund
832:Sweet & Maxwell
688:underground economy
390:
176:
1298:Martingale pricing
1208:Thematic investing
1173:passive management
696:shell corporations
386:
172:
54:. Like the term "
37:
1384:
1383:
1162:Investment styles
682:Critics, such as
595:
594:
381:
380:
16:(Redirected from
1414:
1402:Offshore finance
1397:Investment funds
1376:
1375:
1368:
1367:
1217:growth investing
1183:Impact investing
1051:Investment trust
996:
989:
982:
973:
963:
962:
960:
959:
953:
946:
937:
931:
927:
921:
919:
917:
915:
909:
902:
894:
888:
886:
884:
882:
876:
869:
861:
855:
852:
846:
845:
830:(2nd ed.).
824:
818:
815:
809:
808:
806:
804:
799:
791:
785:
784:
782:
780:
769:
763:
760:
754:
753:
751:
749:
738:
700:transfer pricing
391:
177:
110:offshore company
56:offshore company
21:
1422:
1421:
1417:
1416:
1415:
1413:
1412:
1411:
1387:
1386:
1385:
1380:
1358:
1317:
1262:
1258:Performance fee
1248:Net asset value
1238:Fund governance
1233:Closed-end fund
1221:
1157:
1014:
1012:
1005:
1000:
969:
967:
966:
957:
955:
951:
944:
939:
938:
934:
928:
924:
913:
911:
910:on 14 July 2014
907:
900:
896:
895:
891:
880:
878:
877:on 14 July 2014
874:
867:
863:
862:
858:
853:
849:
842:
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825:
821:
816:
812:
802:
800:
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792:
788:
778:
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747:
745:
740:
739:
735:
730:
708:
680:
655:
646:
641:
629:
605:
600:
163:
106:
43:is generally a
23:
22:
15:
12:
11:
5:
1420:
1418:
1410:
1409:
1407:Legal entities
1404:
1399:
1389:
1388:
1382:
1381:
1363:
1360:
1359:
1357:
1356:
1351:
1346:
1341:
1336:
1331:
1325:
1323:
1322:Related topics
1319:
1318:
1316:
1315:
1310:
1305:
1300:
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1276:
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1268:
1264:
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1245:
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1220:
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1210:
1205:
1203:Social trading
1200:
1195:
1193:Social finance
1190:
1185:
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1175:
1165:
1163:
1159:
1158:
1156:
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1140:
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1125:
1120:
1115:
1110:
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1001:
999:
998:
991:
984:
976:
965:
964:
932:
922:
889:
856:
847:
840:
819:
810:
786:
764:
755:
744:. Investopedia
732:
731:
729:
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724:
719:
714:
707:
704:
679:
676:
654:
651:
645:
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628:
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604:
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476:
473:
467:
466:
463:
461:Cayman Islands
458:
455:
449:
448:
445:
440:
437:
435:Cayman Islands
431:
430:
427:
422:
419:
413:
412:
409:
406:
403:
399:
398:
395:
379:
378:
375:
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259:
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244:
241:
235:
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231:
226:
223:
217:
216:
213:
211:Cayman Islands
208:
205:
203:Cayman Islands
199:
198:
195:
192:
189:
185:
184:
181:
162:
159:
150:
149:
146:
140:
134:
128:
105:
102:
63:Cayman Islands
24:
18:Offshore funds
14:
13:
10:
9:
6:
4:
3:
2:
1419:
1408:
1405:
1403:
1400:
1398:
1395:
1394:
1392:
1379:
1371:
1361:
1355:
1352:
1350:
1347:
1345:
1342:
1340:
1337:
1335:
1332:
1330:
1327:
1326:
1324:
1320:
1314:
1311:
1309:
1306:
1304:
1301:
1299:
1296:
1293:
1289:
1285:
1282:
1280:
1277:
1275:
1272:
1271:
1269:
1265:
1259:
1256:
1254:
1253:Open-end fund
1251:
1249:
1246:
1244:
1241:
1239:
1236:
1234:
1231:
1230:
1228:
1224:
1218:
1214:
1211:
1209:
1206:
1204:
1201:
1199:
1196:
1194:
1191:
1189:
1186:
1184:
1181:
1179:
1176:
1174:
1170:
1167:
1166:
1164:
1160:
1154:
1151:
1149:
1146:
1144:
1141:
1139:
1138:Umbrella fund
1136:
1134:
1131:
1129:
1126:
1124:
1121:
1119:
1116:
1114:
1113:Royalty trust
1111:
1108:
1105:
1102:
1099:
1097:
1094:
1092:
1089:
1087:
1084:
1082:
1079:
1077:
1076:Offshore fund
1074:
1072:
1069:
1067:
1064:
1062:
1059:
1057:
1054:
1052:
1049:
1047:
1044:
1042:
1041:Fund of funds
1039:
1036:
1033:
1030:
1027:
1024:
1021:
1020:
1018:
1016:
1008:
1004:
997:
992:
990:
985:
983:
978:
977:
974:
970:
954:on 2014-10-06
950:
943:
936:
933:
926:
923:
906:
899:
893:
890:
873:
866:
860:
857:
851:
848:
843:
841:9789626614792
837:
833:
829:
823:
820:
814:
811:
796:
790:
787:
774:
768:
765:
759:
756:
743:
737:
734:
727:
723:
722:Offshore 2020
720:
718:
715:
713:
710:
709:
705:
703:
701:
697:
693:
689:
685:
677:
675:
673:
669:
665:
659:
652:
650:
643:
638:
636:
634:
626:
624:
622:
616:
614:
608:
602:
597:
588:
585:
580:
577:
576:
570:
567:
562:
559:
558:
552:
549:
544:
541:
540:
534:
531:
526:
523:
522:
516:
513:
508:
505:
504:
498:
495:
490:
487:
486:
480:
477:
472:
469:
468:
462:
459:
454:
451:
450:
444:
441:
436:
433:
432:
426:
423:
418:
415:
414:
408:Jurisdiction
402:Jurisdiction
400:
394:No. of Funds
392:
389:
384:
374:
371:
366:
363:
362:
356:
353:
348:
345:
344:
338:
335:
330:
327:
326:
320:
317:
312:
309:
308:
302:
299:
294:
291:
290:
284:
281:
276:
273:
272:
266:
263:
258:
255:
254:
248:
245:
240:
237:
236:
230:
227:
222:
219:
218:
212:
209:
204:
201:
200:
194:Jurisdiction
188:Jurisdiction
186:
180:No. of Funds
178:
175:
170:
168:
160:
158:
154:
147:
145:
141:
139:
135:
133:
129:
127:
126:administrator
123:
122:
121:
117:
115:
111:
103:
101:
97:
95:
91:
86:
84:
80:
76:
72:
68:
64:
59:
57:
53:
49:
46:
42:
41:offshore fund
34:
29:
19:
1339:Robo-advisor
1284:Fixed income
1215: /
1171: /
1091:Pension fund
1075:
968:
956:. Retrieved
949:the original
935:
925:
912:. Retrieved
905:the original
892:
879:. Retrieved
872:the original
859:
850:
827:
822:
813:
801:. Retrieved
789:
777:. Retrieved
767:
758:
746:. Retrieved
736:
681:
660:
656:
647:
630:
617:
609:
606:
387:
382:
173:
164:
155:
151:
144:prime broker
118:
107:
98:
87:
60:
40:
38:
1313:Yield curve
1226:Terminology
1178:Hedge Funds
1071:Mutual fund
1011:Investment
698:practicing
692:tax evasion
621:hedge funds
569:Isle of Man
561:Isle of Man
365:Isle of Man
355:Isle of Man
104:Structuring
1391:Categories
1148:Unit trust
1056:Hedge fund
1046:Index fund
1015:structures
958:2014-10-01
728:References
598:Regulation
497:Luxembourg
471:Luxembourg
319:Luxembourg
311:Luxembourg
157:licensed.
114:unit trust
79:Luxembourg
1292:Convexity
803:1 October
779:1 October
748:1 October
678:Criticism
613:investors
138:custodian
48:domiciled
1370:Category
1288:Duration
706:See also
644:Offshore
639:Taxation
603:Offshore
453:Guernsey
443:Guernsey
425:Delaware
417:Delaware
347:Guernsey
337:Guernsey
229:Delaware
221:Delaware
75:Delaware
1103:(QIAIF)
930:manner.
914:13 July
881:13 July
653:Onshore
627:Onshore
591:<1%
583:<1%
573:<1%
565:<1%
555:<1%
547:<1%
537:<1%
533:Bermuda
529:<1%
525:Bermuda
515:Ireland
507:Ireland
377:<1%
369:<1%
359:<1%
351:<1%
341:<1%
301:Ireland
283:Bermuda
275:Bermuda
257:Ireland
132:manager
83:Ireland
69:or the
1267:Theory
1169:Active
1109:(REIT)
838:
775:. HMSO
489:Jersey
479:Jersey
329:Jersey
265:Jersey
67:Jersey
50:in an
1354:UCITS
1213:Value
1123:SICAV
1037:(FCP)
1031:(ETF)
1025:(CCF)
952:(PDF)
945:(PDF)
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798:(PDF)
684:ATTAC
587:Malta
579:Malta
411:%age
405:%age
373:Malta
293:Malta
197:%age
191:%age
1378:List
1013:fund
916:2014
883:2014
836:ISBN
805:2014
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750:2014
465:11%
447:11%
439:11%
429:72%
421:64%
397:AUM
251:11%
243:10%
233:22%
225:20%
215:52%
207:45%
183:AUM
77:and
31:The
519:1%
511:3%
501:4%
493:6%
483:5%
475:9%
457:7%
333:2%
323:3%
315:4%
305:3%
297:5%
287:4%
279:6%
269:5%
261:8%
124:an
39:An
1393::
1290:,
702:.
142:a
136:a
130:a
65:,
1294:)
1286:(
995:e
988:t
981:v
961:.
918:.
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20:)
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