Speaking at a conference in Edinburgh, UK Treasury Minister Ed Balls said the Government has established a working party to investigate the issues regarding fund taxation, which includes representatives from the Investment Management Association, the UK Treasury, private companies and HM Revenue and Customs.

In a report published by the IMA, it warned Britain risks losing out on fund investment because of taxes and regulations - which the Government seems to be turning around.The report recommended scrapping the Stamp Duty Reserve Tax requirement and called for a move to allow businesses to trade funds without incurring a corporation tax charge.

EQUITY Fund Services help you and your customers to be proactive in terms of tax and legislative changes by sharing our expert knowledge. To discuss how these changes could impact you, why not set up a meeting with one of our experts in your region? Please contact Joost Lobler at Equity Trust's London office on jlobler@equitytrust.com

Financial services firms have been developing ETFs in response to customer demands for a faster moving fund. Many are dedicated to thin or esoteric slices of the market, or new and unproven indices, and so they are best worked with experienced hands.

ETFs may also offer some additional tax and cost benefits as well, although that is best determined on a case-by-case basis. It is also expected that actively managed ETFs which behave more like a traditional, non-index mutual fund will also be available in the next couple of years.

Equity Trust can provide you with industry leading advice to help you stay ahead of your game. Get in touch to discuss your individual requirements please contact Robin Harris at Equity Trust's Hong Kong office on robin.harris@
asia.equitytrust.com

In Latin America, alternative investment funds continue to enjoy growing prosperity and exposure. Both offshore and onshore funds concentrated in the region have been building a definite momentum, which has been evidenced by the flourish of LatAm-centric hedge fund conferences. "These con-ferences provide a meeting point for the best Latin American hedge fund managers to showcase their wares as well as profiling the benefits of investing in one of the fastest growing economic areas in the world," says Juan Ranvier, Managing Director of Equity Trust Argentina. If you or your clients would like to find out more about the exciting investment opportunities in Latin America, then please contact Juan Ranvier at Equity Trust's Argentina office on jranvier@equitytrust.com for more information.

New slick online system for incorporations promises greater efficiency The BVI Registry of Corporate Affairs entered 2007 fully stocked with a brand new internet-based incorporation and corporate filing computer system (VIRRGIN). This will allow agents to process documentation with breathtaking speed, increasing efficiency and will provide a greatly enhanced service platform. But like all new system implementations, the BVI has been busy clearing the temporary backlog of work that built up during the upgrade. At Equity Trust, we are working closely with the Registry in all our clients' best interests. To learn more about our highly responsive services, please contact Selina O'Neal at Equity Trust's BVI office on soneal@equitytrust.com

Island of ambition? Or castaway?   Our Labuan office (Brumby House) - A prominent landmark in Labuan.   Heard about the tiny Asian island that became a financial powerhouse? No. Well, Labuan, affectionately known by locals as The Island of Plenty, lies 8km off the coast of Borneo and is aiming to attract international investors in a bid to become the Asian global offshore and low tax jurisdiction to rival the likes of the British Virgin Islands, the Cayman Islands and Mauritius. Massive support from the Malaysian Government has turned this offshore centre into an emerging international market, which offers fantastic opportunities for investors and nature lovers alike. The Labuan Offshore Financial Services Authority (Lofsa) is examining the jurisdiction's tax structure, with a focus on its double taxation treaty network. Labuan has 55 international offshore banks, 119 insurance and insurance-related companies, 79 leasing companies, 28 fund managers and 20 trust companies. Since its first listing in 2001, with a market capitalisation of US$250m, the number of listings on the LFX stock exchange has grown to 31 instruments, including investment funds, Islamic notes and debt securities with a total market capitalisation of US$13.5bn. Over the last 10 years, the Malaysian Government has invested more than RM3bn (US$845m) to facilitate offshore business in Labuan. Labuan offers customers a range of opportunities and tax savings - tailored to the needs of the Asian market. Equity Trust has had an office in Labuan since 1995. We have been developing our business there ever since. To learn more about the many opportunities in Labuan, contact Linda Wong at Equity Trust's Labuan office on linda.wong@asia.equitytrust.com

Corporate tax reduction

The 2007 budget delivered by the Second Minister for Finance, Mr Tharman Shanmugaratnam has included a reduced corporate tax rate of 18 per cent.
This good news is further evidence of the country's initiative to remain competitive in the global race for inward investment. The Singapore goverenment cited that remaining competitive with neighbour Hong Kong, whose 17.5 per cent corporate tax rate is lower than Singapore, was one of the main reasons for the reduction.

Singapore is continuing to prosper, for 2006 as a whole the economy grew by 7.7 per cent. Manufacturing and services sectors grew to 11.4 and 6.9 per cent respectively. Construction grew 1.1 per cent for last year, which was the first rise since 2000. All in all Singapore remains a highly attractive destination for expats working abroad. To find out how this tax reduction will affect your bottom line, please contact Serena Sim, General Manager of Equity Trust's Singapore office on serena.sim@asia.equitytrust.com

A European Union full member since 2004, Cyprus boasts the lowest corporate tax rate in the Union and a range of add-on advantages. Here's our run down of the key benefits of choosing Cyprus:

1.	Over 30 Double Tax Treaties that apply to 40 countries
2.	Taxation of worldwide income for tax residents and Cyprus-sourced income for non-residents
3.	Lowest corporate tax rate in the Europe Union of 10%
4.	Tax-exempt business profits of non-resident companies
5.	Tax-exempt gains on the trading and disposal of securities
6.	Tax-exempt gains on the disposal of subsidiaries
7.	Tax-exempt dividend income *
8.	Exemption of 50% of interest income *
9.	Stable and mature banking system
10.	The availability of a modern and flexible legislative framework
	(*subject to applicable criteria)

To learn more about the taxation benefits of Cyprus, please contact Andreas Athinodorou at Equity Trust's Cyprus office on andreas.athinodorou@
equitytrust.com.cy

"Some regard private enterprise as if it were a predatory tiger to be shot. Others look upon it as a cow that they can milk. Only a handful see it for what it really is - the strong horse that pulls the whole cart."
Winston Churchill

"Work is the refuge of people who have nothing better to do."
Oscar Wilde

"Define your business goals clearly so that others can see them as you do."
George F. Burns

"Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity."
George S. Patton,
American military leader

"I don't think anybody yet has invented a pastime that's as much fun, or keeps you as young, as a good job."
Fredrick Hudson Ecker,
Chairman Metropolitan Life

"The brain is a wonderful organ. It starts working the moment you get up in the morning, and does not stop until you get into the office."
Robert Frost

We're always listening to your needs and it's our wish that EQIQ reaches its goal of becoming a two-way communication. This is what Equity Trust is all about - building relationships. Wherever you need solutions across the world, regionally or locally, we have the expertise to deliver bespoke solutions targeted to your requirements.

Wherever you're heading, we have been before, and we may know the best route.

The views herein are for the purpose of further consideration only and are not to be acted upon without independent professional advice: no responsibility can be accepted for any loss occasioned to any person, no matter howsoever caused or arising as a result of, or in consequence of, action taken or refrained from in reliance on the contents hereof.

c 2007 Equity Trust.
All rights reserved.