One way an investor can defer taxes on hedge fund investments is by utilizing a Swiss Private Placement Annuity. By using a Swiss Private Placement Annuity it is possible to invest in virtually any type of investment including domestic US and off-shore hedge funds. Besides the flexibility and tax advantages, Swiss Private Placement Annuities when properly structured can offer protection from creditors and can be excluded from bankruptcy proceedings.

Since all beneficial interest in the hedge fund must be held by one or more segregated asset accounts of one or more insurance companies and access to the hedge fund must only be through the purchase of a variable contract, a fund manager might consider establishing a Liechtenstein domiciled investment fund (see Swiss Annuities & Life Insurance by Marco Gentenbeim and Mario A. Mata — pages 207 - 212).

If you are a fund manager wishing to establish a Liechtenstein domiciled investment fund you might wish to contact VP Bank. VP Bank can assist in fund set-up including the preparation and execution of all relevant documents, registration and ongoing administration of the fund.

HedgeSynergy.com is not associated with VP Bank and the above is an unsolicited recommendation.

While American citizens can invest in Private Placement Annuities they must be reported annually to the IRS. Also several Swiss insurance companies have stopped accepting American clients including Swiss Life, Baloise Holding and Zurich Insurance Group.

If you are an investor interested in Swiss Private Placement Life Insurance please contact the following organizations.