Q. What is a Mutual Fund?
A. A mutual fund share represents a proportionate ownership of all the underlying securities in the fund, allowing investors to spread their money over many more securities than one person could typically put together in a portfolio. While individuals often own only two or three stocks, and some might be able to invest in as many as 10 or more companies, a mutual fund, on average, invests in 10 or 20 times as many. Therefore, a mutual fund is more diversified than a typical individual's portfolio. This diversification tends to lower volatility because the fund's performance is affected by many securities and not just a few.
Mutual Funds are managed by professionals who spend all day analyzing securities and deciding what to buy and sell. Investment professionals are the seasoned experts in their area of specialization and are well informed about the issues and trends of the securities in which they invest. Investment professionals engage not only their own abilities but also the resources and capabilities of the firm that manages the fund.
Q. What is the advantage of investing in offshore mutual funds as compared to other mutual funds?
A. The major advantage is the tax status. Ownership of a share in an offshore mutual fund generally will not subject non-resident alien investors to U.S. income or withholding taxes on distributions received from the fund or to U.S. estate taxes on their fund shares. Click here for more information about Offshore Funds.
Q. Why are some funds online and others offline?
A. The funds that are online have signed up with the National Securities Clearing Corporation (NSCC) in order for their funds to be settled and prices reported electronically. These funds can be traded over the internet with Pershing’s proprietary trading platform, NetXClient. Offline funds have not signed up with the NSCC, and these must be purchased directly from the fund family.
Q. What is the primary difference between Class A and Class B shares?
A. Class A shares have an up front sales charge, and no sales charge when redeeming shares. Class "B" shares have no up front sales charge, rather a back-end charge called a contingent deferred sales charge (CDSC). This charge is based on when you redeem the shares, how long your investment has been in the fund. The longer, the less of a sales charge. For example, if you redeem your shares within the first year, you may get charged 4%, 3% in year two, 2% in year three, 1% in year four, and 0% above 4 years. The prospectus should be reviewed as each fund has a different surrender charge schedule.
Q. Is it possible to switch the funds within the same fund family without incurring a charge (can I switch from one A share to another A share or from one B share to another B share)?
A. Yes. This is called an "exchange", and there is no charge to switch between funds of the same family and share class.
Q. If I already paid an up front sales charge to purchase Class A shares through you, and redeemed the shares to purchase funds in a different fund family, will I have to pay the up front sales charge again?
A. No. If you already paid an up front sales charge, you will not have to pay it again while you invest with us. Please note this may be subject for review per account. There may be times where a fund family may impose a minimum fee, in which you should refer to the prospectus.
Q. What is the minimum investment?
A. Generally, the mutual fund companies require USD5,000 to start and an additional USD2,000 after the fund is purchased. Please view the fund's prospectus, however, as each fund may have a different minimum initial and additional investment requirements.
Q. What is the sales charge for A share mutual funds?
| $0.00 - $249,999.00
| $250,000.00 - $499,999.00
| $500,000.00 - $999,999.00
| $1,000,000.00 - $2,499,999.00
| $2,500,000.00 - $4,999,999.00
| $5,000,000.00 - $9,999,999.00
| $10,000,000.00 +
*Sales charges listed are subject to change at any time, please e-mail or contact us at +852.2815.1414 for more information.
Q. Are there any additional charges to the fund company or Wall Street Global in addition to your posted commission fees if I purchase Class A shares?
A. By purchasing the offshore funds through us, we are able to offer the published, discounted up front sales charges above. Our published sales charges are the only up front charge you pay when purchasing Class A shares. The only additional fees are the annual expenses charged by the fund companies which are outlined in the prospectus.
Q. What are the procedures to open an account?
A. First, carefully read the Prospectus relating to the relevant fund(s) you are interested in acquiring. Once you have read that,
||Read the directions for opening an account.|
||Once Wall Street Global receives your faxed application, we will assign you a client service representative to assist with your on-going transactions and instructions on where to wire your investments.|
Q. What bank should I wire the money to?
A. The banks differ depending on which fund you purchase.
For Online Accounts:
Wires are sent to:
Bank of New York
1 Wall Street
New York, NY 10286
Please contact us for complete wiring instructions.
For Offline Accounts: It varies between fund companies and the currency of the funds. See the fund company's application for further information.
Q. Do you have insurance/protection program for the money/holdings in the customer's Wall Street Global account?
A. Yes. Any registered securities (stocks, bonds, and mutual funds) held inside the Pershing brokerage account (Online Account) are protected up to USD500,000 (cash claims limited to USD100,000) by the SIPC (Securities Investor Protection Corporation). SIPC protects customers of broker-dealers registered with the United States Securities and Exchange Commission. The protection is against losses caused by the financial failure of the broker-dealer, but not against a change in the market value of securities in customers' accounts at the broker-dealer. The funds are not insured by the Federal Deposit Insurance Corporation (FDIC). If you purchase funds in an offline account, there is no SIPC protection, nor are they FDIC insured.
Q. Who is considered the share holder of subscribed on-line/off-line offshore mutual funds?
A. The account is in your name. Your statement will be generated either by Pershing or by the individual fund companies (for offline accounts).
Q. When will I receive my statements?
A. If you choose to invest directly with the fund company (fund families that are available offline), your statement will be mailed directly from the mutual fund company. Your initial statement (confirmation statement) will be generated promptly after the date of the bank transfer. Additional statements will be sent when you make additions, withdrawals or when the fund reports dividends or capital gains. This could be as often as monthly or as far apart as annually depending on the fund. If you choose to invest through an online account, your statements are mailed out monthly, and you will have the ability to view the current value of your positions daily if you wish.
Q. What do I have to do in order to change my address on my account(s)?
A. Fax us a signed letter with your new address information.
Q. Can I transfer money from my Wall Street Global account to another bank account?
A. As a rule, we only wire money to accounts in the same registration as the account. If you wish to wire money to a different bank account, we will need to verify the nature of the wire and the account information, such as the account holder and account number. To comply with the Anti-Money Laundering law, we would require a Letter of Explanation, which should state the reason for sending the monies to a different account and what the funds will be used for. You will need to supply the bank information to us, such as the name of the bank, address, phone number, and contact person. We do this to protect the investor and for regulatory reasons. Please be aware that submitting a Letter of Explanation is NOT a guarantee that the funds will be wired to a third party account, and will be reviewed by our compliance department.
Q. Can I sell part of the shares from one fund and purchase shares from another fund in a single fund family?
A. Yes. When you exchange shares within the same fund family, it is considered a "free exchange." In order to do this, you simply place an order to exchange either a dollar amount or number of shares from one fund into another. Some fund families may have restrictions on how many exchanges are performed per year, which should be outlined in the fund company's prospectus.
Q. As an investor would I have to pay U.S. income taxes?
A. There is no U.S. income tax as long as you are NOT a citizen nor a resident of the U.S. Non-US investors generally are subject to a mandatory withholding depending on the tax treaty between your country and the United States of either 15% or 30% for all income dividends and interest payments but not capital gains. By signing the W-8BEN and owning offshore funds, you are not subject to the mandatory withholding thus avoiding the 15% to 30% tax.
Q. How can I check on my account?
A. For accounts available online, you can check your account by simply clicking on the "Log in to my brokerage account" button on the home page. For offline accounts, you can check the prices by clicking on "Fund Search" and compare them to your statement from the Mutual Fund company.
Q. Can I open more than one account?
A. Yes, it is possible to open more than one account. A separate application is required for each account.
Q. Is the interest and dividend income earned by the securities held in US Treasury Money Market and US Bond funds reduced by the US 30% withholding tax?
A. No, that is an advantage of having an offshore mutual fund. There is no US withholding tax since the funds are held offshore.
Q. What are the primary differences between Offshore Mutual Fund Companies?
A. Management styles and fund choices. Wall Street Global provides you with over 1,400 mutual funds to choose from and offers these with a deeply discounted sales charge.
Q. Do you offer investment advice, if so what is the procedure?
A. We can assist you in selecting funds, but do not provide you advice, since we offer such a great discount.
Q. Can I use my charge (credit) card?
A. Charge (credit) cards are not an option we accept. The only option to fund your account is a wire transfer.
Q. With mutual fund investments, how much can a person earn on it per annum?
A. Past performance can be viewed in the Offshore Fund Search Section (although this is not necessarily and indication of future results).
Q. What other services do you offer?
A. We currently offer U.S. equities, bonds, mutual funds and offshore variable annuities.
Q. What is the deadline to place an order for same day processing?
A. We must receive your order before 3:45 p.m. EST (New York time), in order to receive the price of the fund at the close of business that day.
Q. How quickly will I be able to sell my shares and what are the commissions for selling?
A. If you contact us directly before 3:45 p.m. EST, the sale will be processed the same day. You may reach us by phone at +852.2815.1414. You may request either a check to be mailed to the address on record, or a wire to be sent back to your bank account (there is a $20 outgoing wiring fee). There are no additional sales charges for selling Class A shares of mutual funds. The fund's prospectus should be reviewed for any possible redemption charges.
Q. Can I open a corporate account with you?
A. Yes, the corporation must provide copies of the Articles of Incorporation, a Corporate Resolution, W-8BEN, and Passport copies of the officers.
Q. Can payments and redemptions be made from a U.S. Bank?
A. Yes. Also, the investor's bank must have a U.S. correspondent bank in order to wire investments.
Q. How can I or my company become an affiliate with Wall Street Global?
A. Please click here to contact us.
Q. Can I change my password?
A. Yes. In order for us to change your current NetXClient password, you must e-mail us the following information: your account number, current password and password clue, new password and password clue. We will make the change the same day that we receive it and send you an e-mail confirmation of the change.