Offshore Investing
Offshore investing is one of the most popular uses of offshore companies, offshore trusts, offshore private interest foundations, etc. These offshore entities facilitate international “offshore” investment providing several useful benefits: privacy, ease of transference of assets, access to otherwise unavailable investments due to restrictions in the home country, lower administration costs, simplified reporting (or none at all) and low or zero taxes on capital gains, interest and dividends. Offshore companies can be used to hold international investments such as real estate, equities, commodities, CD’s, high yield savings accounts and structured deposits. An increasingly popular option is to open an offshore brokerage account in the name of the offshore company to enable trading of international stocks, options, commodities, forex, mutual funds and bonds all from one account.
Equities, Commodities, etc.
World GDP growth and the resulting boom in international markets has fueled an unprecedented level of international offshore investment. Global markets and economies are becoming increasingly less dependent on the US. With this knowledge, astute investors have been achieving higher returns and diversifying their portfolios by adopting an international investment approach. Often times these investors choose to hold their international portfolio in one or more offshore structures in order to provide anonymity, tax savings and access to otherwise unavailable investments due to restrictions in their own countries.
Many US citizens have no idea what they have been missing in other markets because the bureaucrats in Washington, in cahoots with their Wall Street cronies, have placed advertising bans and prohibitive registration and disclosure restrictions on foreign investments all in the name of “protecting” US citizens. US citizens have been “protected” from some of the best opportunities of a lifetime in booming Asian, Eastern European and other emerging markets such as China, India, Hong Kong, Singapore, Russia, etc. over the last several years.
To put this in perspective, in 1970 the US stock market made up 66% of the Global stock market capitalization. That figure is only ~ 45% today. Additionally, of the 8500 funds registered with the SEC, only 15% have beaten their benchmarks over the last 20 years. Yet there are 47000 mutual funds available worldwide with the best of those far outperforming the best of the US funds. This is likely to continue as predictions for US GDP growth continues to lag behind many of these emerging markets into the foreseeable future.
International Real Estate
Historically low interest rates and an increasing demand for luxury properties and second homes continues to fuel international real estate markets. Offshore companies and other offshore structures are popular tools to hold these international real estate investments. The offshore company may provide a simple way to transfer the property from one party to the next merely by selling its shares in the company. Taxes associated with stamp duty and capital gains may be reduced or even outright avoided using this method.
Currency Hedging
By adopting an international investment portfolio one can also hedge against fluctuations in currencies. Offshore investments can be made in a variety of currencies allowing one to be shielded or even benefit from changes in currencies.
Sterling Offshore is not an investment or asset management company, but we understand that this is a popular tool for the use of some of the offshore structures we offer such as offshore companies and offshore foundations. We have conducted the research and developed relationships with several top private banks and offshore brokerage companies. From the active internet trader to the highest net worth client seeking a premier level of service and privacy, we have the solution for you. Sterling Offshore can facilitate the account opening process and also provide account signatory services in some cases for maximum privacy and confidentiality. Contact us today for more information about forming your international investment company.