Investing offshore therefore, in its simplest form, is simply investing in a country other than the one in which you live. Just as offshore banking is holding an account in a country other than the one in which you live.
There are many reasons to consider investing offshore in funds or bonds or even real estate – one of the most common reasons is to gain exposure to opportunities not available in your home country.
International professionals like you, also known as expats, often invest offshore because you’re exposed to a wealth of new investing opportunities when you move overseas (pun intended.)
Whether you choose to maintain what’s called a home country bias – where you retain and bank and invest your wealth in the country you live in – or you choose to think more internationally, and perhaps go offshore, is a personal decision.
In this article we focus on a particular type of offshore investment, namely bonds. We explore the pros and cons of these products, discuss who they are potentially advantageous for, and highlight the main risks that we feel very strongly are not highlighted sufficiently well to potential investors like you.