We like to sleep well at night, not fretting over getting caught in overly clever offshore tax structuring. That is why our operation is deliberately on-shore, based in Germany, one of the safest countries in the world. Having said this, German tax law, like that of many other jurisdictions, largely allows capital gains to be compounded at fund level without tax dilution. Capital gains are taxed at the investor level once fund units are sold. While they are not taxed they can be reinvested by the fund and, hopefully, earn an additional return. All else being equal, higher post-tax annual returns can be produced for the investor as a consequence, benefitting both the fund investor and the government (through higher taxes paid eventually from higher returns). The better the average annual pre-tax return achieved by the fund manager and the longer the fund investment is held, the larger the annual percentage return advantage gets. As ever with matters taxation, of course, we can only outline our assumptions but cannot guarantee eventual government behaviour nor the level of our fund returns.