* Japanese Investors Keen On Caribbean-Based Hedge Funds
Japanese business daily Nihon Keizai Shimbun has reported a sharp increase in the amount of money which flowed into Caribbean-based hedge funds from Japanese investors during 2004. According to the report, some 5.84 trillion yen (US$56.7 billion) was placed into hedge funds domiciled in jurisdictions such as the Bahamas and the Cayman Islands between January and November 2004, representing a 150% increase on the previous year.
The figure accounted for almost one-third (31.7%) of all securities investments by Japanese investors, and the report cited attractive tax regimes in many Caribbean jurisdictions as a major driver for the increased flows.
However, it is thought that a large proportion of Japanese investment into Caribbean funds is redirected to the United States, with investment flows from the region to the US increasing by an annual rate of 50%, the report stated, citing Daiichi Life Research Institute.
