The appeal of offshore funds
The subject, for most Singaporean investors , is
actually somewhat "moot", as the availability of "offshore
funds" to them is greatly restricted. Perhaps in reviewing
the subject, it is worth considering taking another look at
funds, as a whole, and then returning to the primary
objective that most investors and savers need to consider:
Is their money safe?
"Offshore Funds" as a classification is in itself
incorrect. While it was originally a term used from the UK
to describe funds set up in the Channel Islands of Guernsey
and Jersey, these days the vast majority of such funds are
not actually offshore at all, but very much land-locked.
Since the early 1980's, Luxembourg has become the major
centre of cross-border marketed investment funds. In recent
years, Dublin, Ireland, has become quite popular as an
offshore funds centre, and it competes with Luxembourg.
What both Luxembourg and Dublin offer, and thus the
central issue for their appeal, is a well-developed set of
regulations to enable the registration of investment funds
with their financial regulator. As a result of this
registration, the sponsoring fund company can then, subject
to furthur local approval, market its funds throughout the
European Union. In addition, many other countries and places
, such as those in Latin America, some in the Middle East,
Hong Kong, Taiwan and South Korea, have also accepted the
validity of Luxembourg or Dublin fund regulation, to allow
these funds to be marketed domestically.
What then is Luxembourg or Dublin attractive for funds?
Well in simplicity, the whole of the appeal can be summed up
in one word. TAX. Funds organised in both places have
virtually no tax liability locally, neither on the income
arising nor on capital gains achieved. Thus, for someone say
in Asia, the only tax liability applicable on their
investment into such funds is that applied by their country
of residence. In most parts of Asia this also is nil, and
thus investment into offshore funds becomes very attractive.
But care does need to be taken, as while Luxembourg and
Dublin have well-defined regulation and pro-active
regulators, many other of the offshore havens, where funds
can be established, attract the unscrupulous, and thus
dangers exist. To avoid getting caught by perpetrators of
fraud, the prospective investor should abide by a number of
maxims, such as :
Size - Identify the size of the fund in which you are
being invited to invest. Small funds are a danger signal.
Also identify the size of the fund company, and how many
funds it offers. A single-fund fund company should be
avoided.
Reputation - Luxembourg and Dublin have an excellent
reputation for their regulation. Jersey and Guernsey,
Channel Islands, Bermuda, Bahamas and the Cayman Islands,
are all well regulated as well. Be wary of places such as
Gibraltar, Malta or Cyprus.
Offers - Any fund promoter that offers a deal to buy
into their fund that promises returns that seem too good to
be true is probably offering just that, i.e. returns that
are too good to be true.
Guarantees - Many are only as good as the institution
offering it. And many funds have been closed or wound up
because they cannot meet the guarantee.
Risks - Investment risk is something to be accepted as
part of the deal, values do go down as well as up. Do not
compound your risk by "taking a chance on the manager" as
well.
Leverage - An old investment maxim is to not invest more
than you can afford to lose. The danger in many investments
is that you can find you lose more than you invested.
Check the "small print" - Established locations require
fund companies to issue a detailed prospectus of the offer
being made. If what you receive is too short or not
detailed, be careful.
Regardless of being "offshore" or "onshore", ultimately
the key issue is to know and understand what it is you
invest in, and be patient for the returns.
Stewart Aldcrof(This column has the support of
Investment Management of Singapore and the Stock Exchange of
Singapore. The writer is Marketing and Sales Director,
Templeton Franklin Investment Services (Asia) Limited. )
岸外基金的吸引力
对基金来说，卢森堡和都柏林的吸引力在哪里呢？其实离不开“
税务”。对亚洲投资者来说，他们在所居地缴税，是投资于这类基金
的独一税务承担。不外，在亚洲大部门处所，这类投资的收入都不须
要缴税。
对很多新加坡投资者来说，现代职业教育，“岸外基金”是个有点海阔天空的课
题，因为他们能投资的岸外基金很是有限。或者在讨论这个课题时，
应考虑从另外一个整体的角度去探讨这类基金，然后再讨论大部门投
资者和存户最体贴的问题：投资岸外基金有保障吗？
其实“岸外基金”这个名词有欠准确。它发源于英国，本是用来
形容在根西与泽西海峡岛设立的基金。但今时今日，很多这类基金其
实都不再是岸外，而多是内陆的。
自80年代初，卢森堡已成为跨版图基金的中心。近年来，爱尔兰
的都柏林也崛起成为另一个主要的岸外基金中心，与卢森堡竞争。
卢森堡和都柏林的吸引力在于它们有一套完整的管束系统，答允
投资基金与它们的金融监管机构注册。注册后，基金打点公司只要获
得有关国家当局的核准，便可在欧洲联盟推出其基金。
别的，很多国家和地域，如拉丁美洲、中东一些国家、香港、台
湾和韩国，也认可卢森堡和都柏林的监管束度，答允这类基金在境内
出售。
对基金来说，卢森堡和都柏林的吸引力在哪里呢？其实离不开“
税务”。在两地注册的基金，几乎都不必要在本地为它们的收入和资
本增值缴税。因此，对亚洲投资者来说，他们在所居地缴税，是投资
于这类基金的独一税务承担。不外，在亚洲大部门处所，这类投资的
收入都不必要缴税。岸外基金投资因此有很大的吸引力。
但是，投资者不能完全没有戒心。卢森堡和都柏林虽有很好的监
管体系，但也有很多其他岸外基金中心吸引了些图谋不轨的公司，让
不设防的投资者掉入陷阱。
为了制止碰上这种问题，有意的投资者不能忽略以下几点，如：
＊范围：了解基金的范围。范围小，可能是有问题的征兆。同时
，也应了解基金打点公司的范围，以及其打点的基金数目，避开那些
只打点一个基金的公司。
＊信誉：卢森堡和都柏林在管束方面有很好的信誉。泽西与根西
、海峡岛、百慕达、巴哈马、开曼群岛也有很好的管束体系。要提防
一些处所如直布罗陀、马耳他或塞浦路斯等。
＊回酬金应：基金推广公司若答理令人难以置信的诱人回报，它
可能是做了个无法兑现的答理。
＊包管：包管的可靠性有赖于提供包管的公司。很多基金结束营
业或清盘，便因为无法履行其包管责任。
＊风险：风险是投资的一部门，基金的价值有起有落。选择好的
基金经理，不要增加本身的风险。
＊欠债率：一个常提到的投资原则是投入的资金不该凌驾能力范
围。很多投资的潜在危险在于你损失的可能会凌驾你的投资额。
＊细看内容：信誉好的岸外基金中心划定基金打点公司必需发出
详尽的打算书。如果你收到的打算书过于简略，得提高警惕了。
不管是岸外或岸上，最重要的是大白和清楚你的投资，并耐心地
期待赚取回报。
何国富（本栏是新加坡股票交易所和新加坡投资打点协会联办的
公家教育打算。作者是邓普顿富兰克林投资处事的市场拓展及营业董
事。）
