The Centre Of Choice For Hedge Funds

INTRODUCTION

The financial services industry of the Cayman Islands has a worldwide reputation for diversity and quality and is now the world's fifth largest financial centre. It is home to all but a few of the world's leading banks and major international accounting firms, and as of December 2005 held assets of US$1,265 billion. It attracts over 80% of all new offshore hedge funds and, as of 30 September 2006, has 8,088 active hedge funds registered with the Cayman Islands Monetary Authority ("CIMA"). During the nine month period from January to September 2006 alone, there were 1,406 new fund registrations. The total of active registered hedge funds does not include the vast number of unregulated private equity funds, for which there is little statistical information, and there are many billions of US dollars also currently invested in closed-ended funds and debt issues.