The general benefits of listing a fund are that a listing increases a fund’s potential investor base and increases the visibility, marketability and prestige of the fund. The particular benefits of the CSX as a listing environment are as follows:

International recognition

In 2004 the Board of the UK Inland Revenue (now known as HM Revenue and Customs) granted the CSX status as a “recognised stock exchange” under Section 841 of the Income and Corporation Taxes Act 1988.

Among the categories of securities a personal pension scheme in the UK can hold are securities listed or dealt in on a ‘recognised stock exchange’. Accordingly, CSX listed securities can form part of the investments held by such personal pension schemes.

This recognition enhances Cayman’s position as a jurisdiction with the regulatory and legislative framework necessary for the conduct of international finance and securities transactions. The CSX is also an affiliate member of IOSCO and a member of AIMA.

Visibility

The CSX has dedicated pages on the Bloomberg Financial Markets Information Service. Therefore, through the CSX, the fund’s net asset value and investment profiles are available on over 80,000 terminals worldwide. To access this information type CSX on the Bloomberg system.

The CSX also has a dedicated website upon which listed funds current and historic NAVs and news announcements for listed funds are published. The CSX site can provide links to a fund’s own website or to other websites providing analytical information about the fund. There is no additional cost to the fund for using the CSX website; space on the site is provided to the fund as part of the CSX’s listing service. The CSX’s website address is www.csx.ky

Speed with which listing can be achieved

The CSX has committed itself to providing initial comments on a listing application within five business days, and a document turnaround time of three days thereafter. The Listing Committee, which is responsible for approving listings, will convene as often as necessary. With commitment on both sides to expediting the listing process it can realistically be expected to take between 3-6 weeks to list a fund.

Trading Facilities

From 2013 all funds listing on the CSX, whether closed- or open-ended, will have the ability for their shares to be traded on the CSX’s internationally recognised XETRA-based trading platform.

Competitive costs

The listing fees of the CSX are highly competitive compared with those charged by other exchanges and there are discounts available for umbrella funds and fund families.

No minimum subscription level for funds

The CSX does not impose any minimum subscription level for funds although funds with a minimum subscription per investor of less than US$100,000 may be treated as ‘retail’ and be subject to additional requirements for a board comprising a majority of independent directors and a regulated investment manager.

No restrictions on investment policy

The CSX does not impose any investment restrictions on the investment policy of a fund, nor does it insist on any prescribed degree of investment diversification or prohibit newly incorporated funds from changing their investment policies for a specific period of time.

This gives the fund a great deal of flexibility and makes a listing on the CSX very attractive to funds offering highly focused investment strategies.

No requirement for local directors or board independence (except for retail funds)

The CSX understands that a fund’s operations may be based anywhere in the world and so, provided the fund operates within its local laws of incorporation, does not impose a requirement for its directors to be domiciled or resident in the Cayman Islands.

Although for funds open to retail investors the CSX requires the appointment of directors who are independent from the investment manager and other service providers this is not usually a requirement for other funds provided there is adequate disclosure in the listing document of any conflicts of interest.

No restrictions on redemptions

The CSX does not impose any restrictions on a fund’s redemption provisions provided that they are clearly disclosed in the listing document and shareholders are treated fairly and equally.

Flexibility - Not bound by European Directives

Unlike certain other exchanges, the CSX is not bound by any European Union Listing Directives and as a result can be considerably more flexible in its approach. Issuers and other advisers are encouraged to consult the CSX at any time for advice on special situations or in relation to the development of new products.