AIMA Adds Voice To Those Defending Offshore Funds

I was really pleased to see yesterday that AIMA, the Alternative Investment Management Association, has published a paper which gives a really clear explanation as to why so many of the world's alternative investment funds are set up in offshore jurisdictions such as the Cayman Islands and the BVI. As the paper comments "What sets offshore funds – and particularly, offshore alternative funds – apart is the combination of tax neutrality, investment flexibility and sophistication allowed by offshore alternative fund structures."

Examining some of the same points that Phil made in this post on Monday the paper, "Transparent, Sophisticated, Tax Neutral: The Truth About Offshore Funds" highlights the deficiencies in the recent media commentary on offshore structures by explaining why collective investment is beneficial, why alternative investment funds require a tax neutral structure (dispelling the idea that alternative investment funds are designed to avoid tax)