According to the Manx government, the landmark figure of $50.1 billion, as at June 30, 2007, is the latest indication of the rapid growth and success of the Island’s funds industry, in which total funds more than tripled between the years 2003 and 2006.

The Isle of Man funds sector has grown rapidly in the wake of the removal of VAT on fund vehicles, zero rating for corporation tax for fund managers/administrators, and the ending of dual regulation of funds not domiciled in the Island, all introduced in 2003.

The government noted that the Isle of Man is also attracting much larger funds from competitor jurisdictions, including a growing number of closed-ended funds seeking listings on AIM (London's Alternative Investment Market). Growth is coming from additional investment in existing funds, and incorporation of new funds on the Island.

Further, the government has recently started a strong promotional campaign to encourage business from hedge fund managers and other alternative investments. This is in line with recommendations outlined by the Smith Report, which was published in February of this year following a six month review of the Isle of Man’s funds industry.

Commenting on the growth in the sector, Treasury Minister Allan Bell MHK, stated that:

“This is a significant achievement for our funds industry and an excellent endorsement of our Island’s reputation of having a comprehensive regulatory system, offering comfort to investors without adversely affecting fund managers and promoters with unnecessary bureaucratic burdens.”

Alan Smith, Chairman of the Isle of Man Fund Management Association, commented:

“This is a significant milestone for the Isle of Man’s fund sector and brings us one step closer to our vision of having $100 billion of funds under administration and $50 billion of funds under management on the Island, by 2010.”