Malta Placed Second in Funds Domicile Index


The January 2010 results of the Fund Domiciles Stability Monitor Index reveal that Malta ranks second among 10 countries for stability in the international funds industry. Malta stands just behind Luxembourg.

Rankings for the FDSM Index are calculated upon a combination of macro-economic and fiscal data and fund flow statistics.

Fifty per cent of the index score is based on data that could impact the financial stability and competitiveness of the domicile, including the strength of the jurisdiction’s finances, particularly its overall fiscal position, GDP and inflation rates. The other half of the score is based on size and percentage increase or decrease in fund flow data, with provision made for topicality of the statistics – and whether the domicile provides information on both its overall AUM as well as data on its number of registered funds. FDSM’s Index is updated quarterly. The other countries taken into consideration are Gibraltar, Jersey, Bermuda, Guernsey, Cayman, Isle of Man, Ireland, the British Virgin Islands and Luxembourg.

FinanceMalta chairman Kenneth Farrugia said: “The country’s ranking in this index is yet another important endorsement of Malta’s positioning as an EU-based, international fund domicile. This ranking is a clear reflection of the fast growing development of Malta’s funds industry as attested by the growing number of Hedge Funds and UCITS III Schemes registered in Malta, now exceeding 400 funds, as well as the increasing number of fund management companies that have set up and are continuing to set-up in Malta.”

Mr Farrugia added that the presence of all big four accounting firms having substantial practices, the reputation enjoyed by local leading law firms and the flexibility and meticulous attention to detail of the MFSA are all contributing to such achievements which augured well for the continued growth of the industry.