Merill
Lynch Offshore Trusts
Merill Lynch Offshore Trusts
Most
offshore funds operate along similar lines to unit trusts
with the exception that they are domiciled overseas and can
be set up as an investment company (often known as a UCITS)
as well as a unit trust structure. As with a unit trust, they
operate by pooling investors' money and then investing in
the shares of companies and/or other assets. The investor
owns either "units" or "shares" in the
fund. Offshore funds are subject to the laws and tax restrictions
of their domicile, regardless of where the investor lives.
Are
there tax advantages to investing in an offshore fund?
For certain investors, yes.
- Offshore
funds are generally located within a tax neutral jurisdiction
and, therefore, are not subject to most (but not all) forms
of tax
- Any
dividends paid by a fund typically will not be subject to
tax at source
- Investors
should be aware that certain income received by the fund
from the underlying investments might be subject to withholding
taxes
- Investors
should always seek advice regarding the personal tax consequences
of investing in an offshore fund
Merill Lynch have three different ranges of offshore funds,
all of which are available to UK investors:
- Merrill
Lynch International Investment Funds offers their largest
range of offshore funds, from highly specialist funds investing
in areas such as teletech opportunities in emerging markets,
to mainstream regional equity funds, bond and balanced funds
to low risk Reserve Funds.
For the sterling-based investors, Merill Lynch have two
ranges to choose from:
- Merrill
Lynch Offshore Sterling Trust, based in Luxembourg, offers
a range of four equity funds that cover the major markets
of the world and a low-risk Reserve Fund.
- Isle
of Man Funds are structured on their UK authorised onshore
Merrill Lynch Balanced Portfolio and Merrill Lynch International
Bond unit trusts.
For
further information on Merill Lynch Offshore Trusts visit
the Merill Lynch Website.
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