Grand Cayman, 14th October 2010: The Cayman Islands are bucking all global trends according to the increase in new fund formations. Today Cayman Finance Chairman, Anthony Travers, OBE, predicted that trading talent will continue to migrate out of the EU as more restrictive remuneration provisions come into effect.

The Cayman Islands Monetary Authority (CIMA) reports that as at 7 October 2010 the yearly month on month average for new registrations increased to 105 per month a 5 % increase over the comparative figures for 2009.

More importantly fund terminations for the same period decreased by 40% over the comparative 2009 figures to an average of 45 per month.

Total regulated funds in Cayman also therefore increased to 9,623 closing in on the all time high water mark of 10200 achieved in 2008

Mr. Travers commented: “These numbers continue to show the attraction of a transparent jurisdiction which is free of intrusive regulation with respect to investment strategy.

“These statistics are in line with our earlier predictions and I would anticipate terminations will decline further as smaller funds wind down and fund managers make decisions about the high water mark.”

“No doubt Eurocentric managers feel obliged now to form UCITS products but as we see from the recent comments of Peter de Proft, the Director General of the European Fund and Asset Management Association (EFAMA), the regulatory position in Europe is increasingly troubled particularly with respect to custodian liability .

“We remain of the view that the UCITS product is quite different and unlikely to compete with the returns of the hedge fund proper.”

Travers added: “One material reason is that we predict that trading talent will continue to migrate out of the EU and the institutional investor which Cayman serves is well aware of that trend. Interestingly on the subject of migration, and given all the commentary from experts about redomiciliation, according to CIMA figures there have been only four - two to Malta, two to Luxembourg and none to Dublin. We remain assured that on the global stage Cayman’s attraction continues to improve.”