Benefits of Third Party Fund Administration

As the alternative fund industry grows and matures, an increasing number of asset managers and funds are turning to third party administrators to manage the operational and administrative aspects of their fund. A third party administrator will provide fund and investor accounting and many client service related functions. Some of the benefits of outsourcing fund administration functions include:

• Increased investor confidence with regard to valuations and safety of investor capital
• Enables the fund manager to focus on investment activities
• Improved efficiency
• Reduced expense
• Access to state of the art specialised accounting and reporting systems
• Work is performed by experienced industry specialists
• Scalability enables rapid increases in assets

The Offshore Fund Industry

The growth in the number of mutual funds domiciled and administered in no tax or low tax jurisdictions has been remarkable, particularly in the last ten years. The majority of these funds have a small number of institutional and sophisticated high net-worth investors. However, the aggregate value of these funds is considerable and they play an important role in the worlds investment markets. Some of the benefits of domiciling and administering a fund offshore include:

• Favourable regulatory environment
• Tax neutrality
• Structural Flexibility
• Specialist service providers

Cayman National

Cayman National has been providing comprehensive and cost-effective fund administration services since 1989. The Group capability extends from the Isle of Man to the Cayman Islands and offers a compelling administrative proposition to alternative investment funds, family office structures and similar complex wealth management structures.

Working in conjunction with our sister company in the Cayman Islands and combining our highly experienced team with stste of the art systems, we provdie a superior global fund administrative service from either side of the atlantic.

The Group is able to complement the excellent fund administration services with a banking and fiduciary capability to provide a "one-stop" solution for discerning clients and their investment vehicles.

As at 31st December 2007 the Group had approximately US $6bn under administration.