Examining the offshore deposits and mutual fund markets in Switzerland, a new report by Research and Markets found that 57% of the country’s offshore deposits came from Europe in 2003, with the United Kingdom dominating the European flow.
While the U.S. is also a large contributor to Swiss offshore deposits, U.S. investors are more likely to put their money offshore in the Caribbean. In 2000, offshore investment in Switzerland peaked, totaling CHF 2,299.5 billion, before falling off through 2002 to recover at CHF 2,124.8 billion at the end of 2003. Equities were affected the most, falling by 2.4% compounded annually from 1999 to 2003.
According to the report, most companies have tried to reassure customers by formally communicating the directives implications, or are planning to do so, but others are also thinking about how to develop products that will not be affected, including offshore investment or portfolio bonds, which are effectively investment portfolios held as life assurance policies.