The Offshore Portfolio Investment Strategy (OPIS): A Game-Changing Investment Strategy

Table of Content

Companies have been looking for ways to lower their tax bills for decades. Some used loopholes, while others engaged in outright fraud. But one strategy stood out: the Offshore Portfolio Investment Strategy (OPIS). This strategy allowed companies to reduce their taxes while staying within the letter of the law. While some called it a genius move, others said it was unethical. But one thing is certain: it changed the game of tax avoidance forever. We’ll dive deeper into its history, mechanics, risks, and rewards.

The Basics of the Offshore Portfolio Investment Strategy (OPIS)

The Offshore Portfolio Investment Strategy (OPIS) was a tax avoidance product offered by KPMG. In the 1990s, many accounting firms offered similar schemes. These schemes created fake companies and transactions to lower taxes, but they were eventually made illegal. The tax savings from these schemes allowed companies to reduce their tax bills. However, the IRS determined this was a fraud, and companies had to pay hefty fines. Overall, these schemes cost the government much money in lost tax revenue. 

How Does OPIS Allow Investors to Diversify Their Investment Portfolio?

OPIS lets investors diversify their portfolios by investing in assets outside their home country. 

What is the difference between offshore mutual funds and OPIS?

Unlike offshore mutual funds, which are only available to non-U.S. residents, OPIS is open to U.S. investors. OPIS is not a mutual fund and is unavailable outside the U.S.

Is OPIS suitable for everyone?

OPIS is not suitable for everyone. It requires careful consideration of an investor’s financial situation, investment goals, and risk tolerance.

Bottom Line

The Offshore Portfolio Investment Strategy (OPIS) was a strategy that allowed investors to diversify their portfolios and earn higher returns. However, the strategy was not without risks and was unsuitable for everyone. 

Still, OPIS remains a fascinating example of how financial strategies can evolve and change over time.


Written by


Reviewed By



Judith Harvey is a seasoned finance editor with over two decades of experience in the financial journalism industry. Her analytical skills and keen insight into market trends quickly made her a sought-after expert in financial reporting.