It’s all a big gamble

While there are aspects of gambling in investment they are in no way the same practice, which is a common misconception. When you gamble in a casino chances are that the odds of success are not in your favour, however if you make a shrewd investment in the stock market then you are likely to see a steady rise in your fortunes. However for some the thrill of investment leads to risky decisions and in this respect parallels between gambling and investment can be drawn. Instead of making a planned, long term investment the “investment gambler” could go for the quicker, high risk type of investment, which brings all the get rich quick potential that gambling does. You must be aware though that when you blur the line between investment and gambling too much then it really is no different to taking a punt on the horses. Signs that show you are developing a taste more for thrill-seeking than investment can be: you enjoy bragging about your investments, you often make investments without proper research, you think of investment success in terms of luck rather than planning. If these points apply to you it may be time to let professionals help manage your accounts. Read Story

THE Tax Office has ramped up pressure on Australians with undeclared accounts in tax havens by gazetting orders allowing it to question 57 Australian institutions about the behaviour of at least 100,000 customers.

The orders allow the Tax Office to ask institutions including Westpac, Mastercard and Citibank Australia about customers who have merely made inquiries about setting up overseas accounts. Read Story

'Contact us before we contact you' – that is the bottom line message issued by the Australian Taxation Office (ATO) as part of its crackdown on foreign tax havens.

The warning from the ATO has come at the same time it has confirmed requesting information from banks enabling it to identify Australian taxpayers who have undisclosed offshore income or over-claimed deductions involving international transactions. Read Story

With GDP growth of many emerging economies far outstripping those of more developed regions, global investor sentiment has increasingly shifted in favour of equity markets in countries, such as China, India, South America and South East Asia.

However, while these markets present significant opportunities, South African investors looking for offshore exposure should not overlook the importance of exposure to developed economies as part of a well diversified global portfolio.

There are both structural and tactical reasons why a South African based investor could benefit from European equity exposure. On the structural case for investing in European equities, one of the golden rules of investing is not to put all your investment nest eggs into a single basket of assets. Read Story

With the dividend taxation rules recently changing, Joe McGrath considers whether investors can expect to see an increase in the number of UK-domiciled investment trusts.

Between 2006 and 2009, there were only three new launches of investment companies domiciled in the UK, totalling £136 million. By comparison, there were 54 launches offshore, totalling a mammoth £6,854 million, excluding venture capital trusts. Read Story

The situation is still developing, but some reports suggest that Australia may have spawned its very own Madoff-style scheme within Trio Capital (formally Astarra/ Absolute Alpha). While the size of the problem pales in comparison with the estimated US$65 billion involved in the US Madoff affair, the possible blow to confidence and trust in the local investment industry as more details are revealed should not be underestimated. Read Story

The lawmaker leading the debate at the European Parliament over new rules for hedge funds and private-equity firms is considering a proposal that would require fund managers outside the European Union to follow EU rules before being allowed to market funds in Europe. Read Story

Uh oh. We're in trouble...

I just hosted our annual Investment U seminar, where a few hundred attendees came to learn to be better investors. With a laundry list of the stars in our business, attendees picked up a lot of great investment ideas. And that might have been the problem...

While picking up a few good investment picks might be a nice thing in the short run, it's not going to sustain you over the long run.

So in my closing remarks at Investment U, I tried to make sure attendees stayed on the right path. I turned investors' attention back to Investment U's "Twelve Timeless Rules of Investing." I pointed out a few that are particularly important right now... Read Story

The success of Singapore as an offshore banking hub is a result of the country's economic stability, security and business-friendly practices. The country's taxation rates, which are among the lowest in Asia, its rating as a grade A offshore center and its relationship with many major international financial institutions are just some of the factors that make Singapore an ideal offshore banking center.

Is a Singapore Offshore Account for you?

Individuals who open offshore accounts in Singapore are typically investors from North America, Europe and Australia who look for high quality banking services.

Singapore fits the bill perfectly, with its world-class banking structures, proficiency in English and an independent business environment that is outside the United States and European Union's influence.

The country's stable economy, flexible regulations and sophisticated legal system help ensure individuals are able to efficiently conduct their offshore businesses. Read Story

I got a press release from HP recently announcing the opening of its new service center in Conway, Ark. "The $28 million site will employ more than 1,000 employees and is evidence of HP's continued investment towards the goal of delivering the best support and service in the industry," read the release. "HP selected Conway in part due to its close proximity to the universities and colleges in Central Arkansas."

I've also been receiving plenty of gripes lately from readers grumbling of offshore technical support experiences. Gripe Line reader Kevin, for example, writes in to complain about chat support in general, explaining that he gets very irritated "when I ask a question that 99.9 percent of the population would interpret one way but the support representative interprets in some other way. Or when a representative is unable to do anything but go through a script even if that script makes no sense." Read Story

A strategy for offshore investing is an important decision that trustees of retirement funds and members will face and there are many things they should consider.

John Anderson, Head of National Consulting Strategy at Alexander Forbes, said: “Current thinking suggests that maintaining an offshore component to an investment portfolio is key to diversification and hence, risk reduction.

“But trustees and individual members, where relevant, have several questions they need to ask before taking that step. The considerations below are not exhaustive, but form some of the more important areas that trustees should weigh. Read Story

The Australian Securities and Investments Commission (ASIC) is taking legal action to disqualify unlicensed operators of 14 offshore managed investment funds who allegedly misled 700 investors by operating like a ponzi scheme.

ASIC has asked the NSW Supreme Court to disqualify David Hobbs and eight other individuals and offshore companies from managing corporations and operating managed investment funds, after they allegedly attracted $US42 million ($A45 million) from local investors. Read Story

Amid the contentious build-up to the final passage of the healthcare bill, the Hiring Incentives to Restore Employment Act (“HIRE Act”) was signed into law with relatively little fanfare. The HIRE Act includes as a revenue-raiser the Foreign Account Tax Compliance Act (“FATCA”), which will require increased information reporting by foreign financial institutions, including offshore hedge funds and other offshore commingled investment vehicles. The HIRE Act also will impose U.S. withholding tax on certain swap payments that are contingent upon or determined by reference to U.S.-source dividends. A separate alert discusses some of the tax provisions in the healthcare bill. Read Story

Captains of industry in France are planning to continue investing in Malaysia because its political stability makes it an attractive destination.

Technip president Bernard Di Tullio said such stability was a key attraction as it ensured business viability.

The company is a global player in engineering, technologies and project management.


Di Tullio's Technip has invested an additional '130mil (RM650mil) to set up a factory in Malaysia. The plant is near completion.

This was on top of the regional office it had set up in Kuala Lumpur since the company started its Malaysian investment in 1982.

Di Tullio believed policies outlined in the proposed New Economic Model (NEM) would further attract foreign investors. Read Story

THE Royal Bank of Canada (RBC) is applying for an investment management licence in Brunei as the bank eyes prospects in the wealth management segment, top executives said.

RBC Chief Executive Michael Lagopoulos told The Brunei Times earlier this week the bank’s strategy is to provide local access to the bank’s global network so clients are plugged in to all of the bank’s wealth management offices all over the world. Read Story