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Taxation of Investment Funds:
New special report from BNA International highlights key role of investment funds in global economy

NEWS RELEASE

Contact: Nick Gallehawk + 44 207 559 4802/ngalleha@bna.com

Washington, DC (May 15 , 2007) – Taxation of Investment Funds, a new special report published by BNA International Inc., highlights the key role of the investment fund industry in the global economy and economic prosperity. The industry plays a pivotal role in facilitating and supporting investor savings, providing the pooled vehicles that are for many investors the only way to invest in securities in a cost-effective manner.

Taxation of Investment Funds focuses on hedge funds and private equity. Hedge funds in particular have been in the spotlight, with calls from the US Senate Finance Committee, among others, for more regulation of these funds and their investment advisers. The Committee’s ranking member, Senator Chuck Grassley (R-IA), highlights the importance of pooled investment vehicles, noting that by some estimates they represent nearly 30 percent of the daily trades in U.S. financial markets.  A  number of high-profile private equity buy-outs have also taken place in recent times. The private equity firm of Kohlberg Kravis Roberts just announced an £11.1bn takeover of Alliance Boots, the first-ever leveraged buy-out of a FTSE 100 company in the UK (Financial Times, April 25, 2007).

One reason for the popularity of investment funds is the tax advantages they bring, and, as outlined in Taxation of Investment Funds, tax competition for funds remains strong in both onshore and offshore jurisdictions.

Investment funds also open up investment opportunities that might not otherwise be available to, or practical for, individual or institutional savers. With large amounts of capital to invest, funds can usually secure better terms, and generally benefit from the financial expertise of the funds’ teams of investment managers.

This Report looks at some significant recent decisions and opinions from the European Court of Justice that will have a direct bearing on the taxation of investment funds in Europe and beyond – Denkavit, FII and JP Morgan Claverhouse.  It goes on to examine different categories of investment funds – property funds (including REITs), private equity funds, retail investment funds, and hedge funds. While a particular focus is given to the UK and Germany, two of the major players in the industry, other articles focus on both onshore and offshore jurisdictions such as Singapore, the Caribbean, Luxembourg, Austria,  Jersey, Malta, and New Zealand.

Working press may request a review copy. Contact: Nick Gallehawk, BNA International, 29th Floor, Millbank Tower, 21 – 24 Millbank, London SW1P 4QP, UK. Telephone + 44 207 559 4802. Fax: + 44 207 559 4840. Email: ngalleha@bna.com. Website: www.bnai.com

Publication Date: May 2007.  Pages: 120.  Price: £125

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About BNA International

BNA International's services help companies and their advisers operate successfully in global business, providing accurate news and analysis of worldwide legal developments in areas including international tax, IP & Communications and Business & Finance. It is the London-based subsidiary of BNA (www.bna.com ), the largest independent U.S. publisher of news and information for professionals in business, law, tax, and government.