The upshot: offshore growth is ‘unstoppable’

This article is part of
Offshore Investing - July 2013

“What we find is if a fund group is based

in Europe, continental Europe or the US, and they are looking to expand their horizons – then a pan-European base is a better option because they can be sold into the UK, into Europe and, to an extent, into other borders as well.

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“The Ucits guidelines, or rules for the funds, are well known globally and Dublin and Luxembourg are the primary hubs for that, although other locations for that are falling into place now.”

The reasons for ‘going offshore’ have changed – moving away from tax benefits and towards portfolio diversification – and advisers, therefore, have to judge both offshore and onshore products in the same light.

Mr Burdett explains: “There is some history of offshore funds being more expensive in the underlying hidden charges, or those outside the annual management fee, and regulation is very slightly different, but Ucits funds are considered by the FCA as of equivalent quality in terms of regulations.

“Advisers should concentrate on the investment manager and process and treat these things as boxes you have to tick to get comfortable with the fund.

“It is good news that there is more choice for investors, [the inclusion of offshore funds in IMA sectors] is gaining momentum and I know there are other companies that will be adding it over the years. It is unstoppable.”

Jenny Lowe is features editor at Investment Adviser