Risk Management

While it is important that the investment strategies employed must be in line with the client’s investment objectives, they must also be within the agreed boundaries of acceptable risk. The relationship between risk and return is a key element of our investment approach. Many investors have concerns about moving away from ‘safe’ methods of investment such as bank and building society deposits. In the longer term, however, there can be a ‘risk’ in maintaining an over cautious approach using deposits. This is because capital and the resulting income will progressively decrease in real terms.There are investment techniques and structures available today that allow a much tighter control on risk, without unduly limiting the opportunities for above average returns. Our investors will find that they are able to participate in investments that are more rewarding than purely deposit interest rates.

Investment Portfolios:

Both large companies and individuals regularly use offshore companies as mediators to hold investment portfolios, which may consist of stock, bonds, cash and a broad range of other investment products. Cash assets held by offshore companies earn deposit interest gross or can be placed in collective cash funds.

Many clients prefer life insurance and pension contracts to be arranged by their offshore companies. Individuals often use offshore companies as personal holding companies. Offshore companies are regularly used for inheritance purposes and to reduce probate expenses. Such companies can provide privacy and may save clients professional and other fees. To reduce risks to both corporations and individuals, it is very important to select a politically and economically stable corporate domicile.

Real Estate and Land Ownership:

The ownership of real estate and land by an offshore company can often create tax advantages, including the legal avoidance of capital gains, inheritance and property transfer taxes.

By structuring the financing correctly, the offshore company can reduce the effective level of withholding tax on rental income.