Offshore Funds

Offshore funds are simply any funds that are based outside the UK. Some are authorized whilst others are not and have marketing restrictions in the UK. They are typically corporate based and open-ended, but they can be any variation of open/closed and corporate/trust based.

Hedge funds have proved popular in recent market conditions. However, the lack of authorization (and restricted investor protection) and high minimum investment levels mean that they are only available to higher net worth investors.

The exceptionally high risk levels incurred by the underlying use of derivatives are the main hindrance to authorization. However, they are often used by professional fund managers to help them manage risk within their own investment funds.

There are currently moves afoot to allow hedge funds under the umbrella of an authorized fund of funds, thus providing access to them indirectly.

For more information, please contact us.