Growing competition from new investment vehicles approved by Hong Kong and Singapore has prompted the Cayman Islands to launch an initiative to protect its position as a favourite destination for Asia hedge funds and the super-rich to park assets, according to a report by the Financial Times.

Growing competition from new investment vehicles approved by Hong Kong and Singapore has prompted the Cayman Islands to launch an initiative to protect its position as a favourite destination for Asia hedge funds and the super-rich to park assets, according to a report by the Financial Times.

As part of the fightback, Cayman Islands financial services minister André Ebanks visited Singapore and Hong Kong this month to advance plans to set up what would be its first office in Asia in one of the two cities.

Officials based in the new office will be tasked with helping investors set up and manage funds based in the British Overseas Territory.

Both Singapore and Hong Kong have approved new Cayman-style fund structures that offer international investors a way to shelter money in lightly taxed vehicles, with government subsidies to cover some set-up costs.

Singapore's variable capital companies have proved particularly popular with 889 set up since they were launched in 2020. Hong Kong's open-ended fund companies are growing in popularity too, with 64 established in 2022, up from 40 a year earlier.