What is an open-ended investment fund?

One which has no pre-determined closing date. Most publicly-marketed investment and mutual funds are open-ended.

What is a closed-end investment fund?

One with a pre-determined closing date, on which the fund's assets must be realised and the proceeds distributed back to the subscribers. Closed-end funds are normally used by groups of private investors, often working in 'limited partnerships' for tax reasons.

What is an offshore investment fund?

One which is based in an offshore jurisdiction (although the term is often
used, perhaps incorrectly, to describe a fund which is based outside a
particular high-tax country). An offshore investment fund may have the
problem that it cannot market into some important high-tax countries
unless its local supervisory and regulatory regime is 'recognised' by
high-tax countries as being up to their standards.

Broadly speaking, this means that if you see an offshore fund being marketed
in a high-tax country, its investment behaviour is probably quite constrained,
and this may limit its ability to achieve high returns, in the interests of protecting investors.

What types of offshore fund are there?

Offshore funds come in many varieties, even more than onshore funds (those in high-tax countries) which are often limited by local regulation to less volatile types of investment. Thus, there are offshore bond funds, equity funds, sectoral funds, emerging-market funds, money-market funds, hedge funds, property funds, income funds, capital funds - and more.

What is an offshore equity?

An offshore equity is one that is listed on a stock exchange in an offshore (= low-tax) jurisdiction. Usually there are no withholding taxes on dividends paid out, and very low local taxation of corporate profits.

An offshore equity brokerage is simply one that is based offshore, and allows you to buy regular 'onshore' equities from an offshore base. This won't directly help you to escape withholding taxes, but it may help with national stamp duties and capital gains tax, as well as preserving confidentiality.

What is a 'recognised' exchange?

If a stock exchange has a regulatory and supervisory regime which is up to the standards of established stock exchanges in high-tax (OECD) countries, then it may be 'recognised' by the authorities in some or all OECD countries. This means that securities listed on it can be offered for sale in the high-tax countries concerned, and in particular can be bought by mutual funds within high-tax country regimes.