4 Feb /14

International Fund Management: Offshore in the Channel

translation company Jersey GuernseyJust several decades ago, international investing in so-called “tax havens” was considered to be an option only for those for people who owned yachts and lived in luxurious estates. There was something mysterious and intriguing about this sort of investment- a tool of the jet-set crowd and global business professionals to protect their wealth from the reach of the IRS and their international counterparts. Thankfully, times have changed, and offshore investing has lost some of its mystique and exclusiveness. Nowadays, offshore investments have become a popular choice across all strata of society. While the U.S. have the Cayman Islands, Europe’s premier destination for offshore investment are the Channel Islands of Guernsey and Jersey.

Though it may not offer the clandestine nature of years past, there are still many advantages to having offshore assets. Some of these advantages include:

  • Preferred Tax Structure– Simply stated taxes eat away at every income. An offshore presence can help to legally lessen the tax rate and capitalize on incentives.
  • Confidentiality and Asset Protection– In business, a certain level of secrecy is required, whether it be shielding your plans from the prying eyes of competitors or moving assets to better address a need. By investing offshore, a business can gain additional privacy and protection.
  • Diversification– No matter how diverse and global economies have become, there will always be certain geopolitical trade and business restrictions. By moving a portion of operations to an offshore jurisdiction, a business can take advantage of all potential opportunities, regardless of location.

The Channel Islands

Ideally located between the UK and continental Europe, the Channel Islands are positioned to take advantage of investment opportunities from virtually all of Europe and everyone looking to do business in or with Europe. This category includes a lot of companies. 1 out of every 3 Chinese companies listed on the LSE-operated Alternative Investment Market are incorporated in Jersey (comparable to £118 billion of investment annually). Due to the Islands’ status as a premier banking and investment destination that provides all associated amenities for their customers, including legal representation, fund custodians, and investment advisors the Islands can now jointly boast a combined £245 billion in banking deposits, a net asset value of funds under administration in excess of £500 billion, and over 33,000 live companies.

Clearly, an offshore presence in the Channel Islands can be beneficial to any business, regardless of the company’s intent or location; however, considering the complex and detailed nature of conducting business offshore, any business entity needs to be able to correctly communicate its needs and thoroughly understand its options.

EVS Translations is one of the leading language service providers for financial institutions and corporate finance departments and specializes in the translation of highly-sensitive documents such as investment portfolios and market analyses. Specialized translation teams in 7 offices work in line with financial terminology while experienced proofreaders ensure that all translations meet the international quality standards EN15038 and ISO 9001:2008.
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