We have put together a summary of questions that are usually asked by our customers. Look over them and you should find the topic that you're looking for. Please look over them before making inquiries.

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What is an offshore fund?

Offshore fund is a fund where income and inheritance tax are not applied at all. Tax rates are significantly lower in these areas. A number of financial institutions have been gathered all over the world in these areas which are also referred to as "offshore financial centres." Legal systems have also been established in these areas.
Offshore areas are the perfect place for the preservation of the property and asset management. These are what are referred to as "offshore funds" and they are a set fund.


I haven't heard much about offshore funds and it's kind of difficult to understand but...

With all the confidence you can leave the management of the operation of the fund to a specialist who is referred to as the "fund manager." They also handle the management of the investment principal but such expertise is not only limited to the fund manager as storage banks also can help people manage offshore funds efficiently.


What kinds of people operate offshore funds?

Institutions such as wealthy private banks are operating the funds in what they call offshore banks. With offshore funds, the height of "safety" and "convenience" occurs earlier in overseas banks and university funds rather than Japanese banks or public institutions such as pension funds.


What is a private bank?

The private bank is a specialized bank that provides a sophisticated financial services, such as "maintenance, operation, management and inheritance" of individual assets. Spawned from the wars and revolutions in the Middle-Ages in Europe, the wealthy in Switzerland started them in order to protect the assets of the family. There is a very long history in regards to private banks.

Even these days, private Swiss banks receive high praise and support from many of the wealthy from around the world because they offer very sophisticated financial services.


Are offshore funds like investment trusts in Japan?

Investment trust in Japan is completely different. The biggest difference is that in Japan they do not offer a principal guarantee but with offshore funds, there is an operation principal called "principal protection type" which is full protection.


I would like to know more about the "principal protection type."

If by some chance, the principal protection type's operation does not go well, 100% of the amount for the operational principal is protected by the bank at maturity.

In addition, the protection offered is from a highly-rated bank (bank with high credit rating) in which safety is guaranteed. Japanese people do not like any risks associated with investments and asset management but with the principal protection type, the risks are minimal.


What is the yield of the principal protection type? Also, will I not be able to receive benefits every month?

When looking at past examples, it's about 10-20%.
In addition, there is a principal protection fund called "interest rate fixed at less than 1 year." Also another called "monthly receipt-type" in which you can receive benefits monthly. It is especially pleasing to those who are collecting their pensions.

However, the difference between principal protection funds and investment trusts in Japan is that you can sign up at any time for principal protection types and not only during a specified recruitment time.


What kinds of risks are there with the "principal protection type" of offshore funds?

The redemption at maturity level is fully protected by the custodian bank. On the other hand, if you were to withdraw at any time before the fund matures then there a loss of principal.

In addition, since the offshore funds that operate in foreign currency, the principal becomes the protection in foreign currency and the exchange rate applied is on the date that your application was submitted. Therefore, when you redeem your investment, you may experience an exchange loss depending on the rate.


Have you ever heard that there is a need for more than 100 million yen minimum in order to perform the operations necessary in offshore funds through a private bank?...

Certainly there are many offshore funds in which the minimum deposit is 100 million yen or more, but now Premier Bank Inc. offers deposits between 1-5 million yen. Generally, we offer a deposit of around 3 million yen.