Over 80 per cent of the world's 8,000 hedge funds are now registered with the Cayman Islands Monetary Authority (CIMA), according to new analysis released by global offshore law firm Walkers. A surge in interest from Asian investors has contributed to a 100 per cent increase in the number of hedge funds registered in the Cayman Islands during 2004, as more than 1,100 new funds were established in the jurisdiction last year. The popularity of the offshore centre was attributed to its lack of taxation, its sophisticated financial infrastructure, and the ability of funds to achieve measurable cost savings which can be passed on to investors. The report also highlighted a substantial increase in investments by Asian institutional investors in US debt and equity markets through Cayman-based investment funds. This has been particularly true of Japan, from where investments destined for the Caymans last year grew 150 per cent.