I am trying to find the best way to invest with the lowest costs.

My question is, how can I get discounted access to offshore/sicav investment trusts from, for example, Foreign & Colonial and JP Morgan?

I ask because Investment Trusts are very efficient if you are resident in the UK and have to pay UK tax. If you are not resident there,;like myself, you would be paying UK tax on UK investment trusts, so offshore trusts are better, in that respect. However, the charges to offshore investment trusts are very high, if you purchase directly.

I wish to find an intermediary who will let me purchase shares in these companies at the lowest fees.

One offshore investment trust, for example Vanguard, operating in Ireland, has fees low enough to make purchasing directly worthwhile and I would not need a broker, I believe, however their range of products is not very wide.

I am very looking forward to hearing any ideas you might have about this area. I have spent quite a lot of time looking for good information on this area, but it is not easy to find.

Response from Steve Travis, International Tax Manager, The Fry Group (www.thefrygroup.co.uk):

"Firstly, the tax issue with offshore funds is a red herring. There is no difference between an onshore or offshore fund for income tax or Capital Gains Tax (CGT), for an expatriate. UK resident clients need to be more careful however, choosing offshore funds that have distributor status. Tax on dividends cannot be claimed back by offshore funds or the investor. As an expat investor, the choice of funds should not be influenced by tax. Instead the drivers are cost, performance and currency. I am not aware of any discount brokers offering offshore funds with no or low commission in return for keeping the trail fee on the fund. Any fund selection that requires advice from a professional will add some cost because of general business overheads, in addition there may also be problems depending on their country of residence. However if the reader wants to choose the fund himself, he can purchase the fund through The Fry Group or any regulated broker on an 'execution only' basis and negotiate to reduce the initial commission."

These are the opinions of Steve Travis from The Fry Group and not detailed financial advice. Therefore professional financial advice should be sought before making any decision on investing.

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