chancellor Publication

The Chancellor Offshore Funds Manual


INTRODUCTION

The Chancellor Offshore Funds Manual The offshore fund industry today bears an interesting resemblance to the Internet. It is large and incapable of precise qualification; it has a geographic reach which is almost universal and for many outsiders is beyond their comprehension as to how it operates! Yet, in the past few years, paralleling the growth of the Internet, offshore funds have become a critical medium for channelling cross-border investment onto both industrialized and emerging economies.

Some estimates place the number of offshore funds as high as 5,000, but the actual number is probably even higher as many offshore funds have a relatively small number of investors and consequently are omitted by the census takers. Catering to a market consisting principally of institutional and high net-worth investors, the offshore fund milieu offers advantages to both sponsors and investors. Its lightly regulated environment offshore permits funds to be brought to market more quickly and at a lower cost than an onshore fund. In addition, in an era of increasing globalization offshore funds offer a valuable and unique medium in which investors from various countries can more easily participate together in the same investment vehicles. Finally, the offshore environment offers investors a fiscal environment free of all taxes.

The Chancellor Offshore Funds Manual brings together the experience and writings of a number of leading professionals working in the offshore fund area. This manual provides the reader, be they professional advisor, fund sponsor or investor, with the tools to understand the market, the rules that apply, the administrative and accounting challenges and the relationships between the various players.

We are confident that you will find this manual an invaluable reference source whether you are active in the offshore fund industry or merely have an academic interest in it. We welcome your comments on the manual and would be happy to put you in touch with any of the authors should you have any further questions about the issues covered in this book. We can be contacted by e-mail at mail@chancellorpublication.com, by fax at 44-171-251-1673 and by mail at Chancellor Publications Limited, 6 Charterhouse Buildings, London EC1M 7AN, United Kingdom.

The Editors
February 1999