More from: offshore investing

How the world’s biggest Sovereign Wealth Funds are financed

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Sovereign wealth funds (SWFs) are state-owned and are characterized by a heavy focus on long-term investments on foreign assets like bonds, stocks, precious metals, and even real estate. Most of these funds are created by export-oriented countries rich in natural resources. As of 2017, the world’s total sovereign wealth fund has reached over $7 trillion in assets.

While objectives of creating a sovereign wealth fund may vary among nations, almost all of them focus and have these general goals in common: diversification of their revenue base, protection from market volatility, and accumulation of savings for their country’s future generations.

Currently, the world’s biggest sovereign wealth fund is owned by Norway, followed by oil-rich countries in the Middle East like Kuwait and Saudi Arabia. Perhaps the primary reason why these nations always make it to the top of the rankings has something to do with their access to the most important capital sources of a sovereign wealth funds: commodities, in the form of oil and gas-related funds.

Primarily financed by exporting commodities, commodity sovereign wealth funds rely on the growth of both gas and oil prices – and these resources fund a majority of funds, accounting for more than 50% in 2015 alone.

Sovereign funds can also be financed by non-commodity assets, and usually created from an excess of the country’s current account surpluses’ currency reserves, privatization proceeds, resource exports as well as fiscal surpluses. These make up the over 40% of the world’s sovereign wealth funds.

On a smaller scale, private investment portfolios function almost on the same way as SWFs—except that they are personal accounts. Wealth management firms and offshore portfolio management companies like LOM Financial work with clients to build customized investment accounts that are powerful enough tap into the world’s biggest and newly emerging markets.


Exclusive Caribbean beach destinations for luxury travelers

Tourism is one of the most important sectors in the Caribbean region – and the island-destinations scattered throughout this part of the world are popular destinations for luxury travelers from various countries. The most admired Caribbean beach destinations among high net-worth individuals offer more than just a laid-back tropical lifestyle. Luxury travels within this region promise privacy, five-star services, and exclusive access to the most lavish travel experience there is.

Here are the top beach destinations in the Caribbean for luxury travelers:

Seven-Mile Beach, Grand Cayman, the Cayman Islands

Image source: caymancompass.com

When it comes to luxury family vacations, the Seven-Mile Beach in the western side of the Grand Cayman is an easy choice because of its selection of the most sophisticated and exclusive accommodations in the entire Cayman Islands—one of the world’s most important jurisdictions for offshore investments. Popular hotel brands offer the most lavish holidays especially for wealthy guests who want to spend quality time with their family. Aside from hosting one of the largest luxury penthouses in the Caribbean, Cayman hotels offer exclusive facilities such as private elevators, outdoor terraces, a libraries, and movie theaters.

Platinum Coast, Barbados

Image source: tropicalsky.co.uk

This Caribbean destination is known as the “Platinum Coast” because of the long line of luxury hotels located along this western coast. It includes the sophisticated first-class accommodation, Sandy Lane – the most luxurious beachfront property built on the island. In Barbados, you can pretty much enjoy everything that a dream tropical experience is all about: fine dining, water sports, shipwreck diving, golfing, shopping, sightseeing, and many more.

Gregory Town, Eleuthera, Bahamas

Image source: cruisegourmet.com

Luxury suites, fine dining, private boat and plane, hilltop infinity pool, indoor and outdoor recreations…you name it. This Bahamian paradise has everything that a luxury holiday has to offer – and it is set in an exceptionally beautiful high-end beachfront location: the Eleuthera. This place is a characteristically long and thin island in the Bahamian territory and is popular for its turquoise waters and pink beaches. It’s also the location for the archipelago’s five-star hotels and exclusive resort-boutiques popular to European and American luxury travelers. In addition to being a prime offshore investments center, the Bahamas is indeed a luxury traveler’s paradise.