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Cayman Islands in the foreign press
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| Published on Tuesday, February 9, 2010 |
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Balance of power in a Cayman hedge fund is with the manager
LONDON, England: Reuters, February 5, 2010 – Hedge funds clients are still paying lavish fees on $100 billion of money they are unlikely to be able to touch for some time, in a sign of the lingering damage done to the opaque industry during the credit crisis.
Despite almost a year of rising markets and better liquidity since the nadir of the credit crisis in autumn 2008, managers have plenty of assets -- worth at least $100 billion, according to Hedgebay, a marketplace for hedge fund holdings -- locked up as they still can't be sold. And in a few cases managers are stopping clients selling on these holdings in secondary markets to more patient investors.
"The balance of power when you invest in a Cayman fund is with the manager," said Alexandre Col, head of Edmond de Rothschild private bank's investment fund department. "If there's one lesson to learn from '08, it's that the manager can do whatever they want for quite a long time, without taking into account the opinion of shareholders."
New drugs transferred to holding companies in the Cayman Islands
NEW YORK, USA: New York Times, February 5, 2010 – President Obama’s proposed budget this week, for example, includes a plan he alluded to in last week’s State of the Union address: a new tax on profits from some patents and other intangible assets parked in overseas tax havens by American companies. For drug makers, which are among those most likely to be affected by such a tax, the president’s proposal “pretty much came out of the blue,” said Martin A. Sullivan, an economist formerly with the Treasury Department and Joint Committee on Taxation
Mr Sullivan, the former Treasury economist who now writes about tax issues, said that all the big drug makers engage in offshore tax sheltering of one sort or another. And the portion of overseas profit and revenue has been growing in recent years. “Typically when a pharmaceutical company develops a new drug, it transfers it to a holding company in a tax haven like Bermuda or the Cayman Islands, usually on very favorable terms,” he said. “There’s a tremendous amount of income taken out of the US and put into the tax haven. This proposal seems targeted to just that type of situation.” | | | | Reads : 647 |
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