Citco Fund Services, one of the world's largest hedge fund administrators, has announced plans to open an office in Halifax, Canada with plans to eventually employ about 350 people.

Citco Fund Services has offices in Bermuda, most other offshore centres, London, the US and Asia. Citco has operated in Canada since 1992, and now employs about 350 people in Toronto, primarily as a back-office for its offshore centres.

"We see Halifax as a strategic centre to develop our Canadian operations," said William Keunen, global director of Citco Fund Services. "With Nova Scotia's education infrastructure and competitive advantages, we know it is the right place for our new office and training centre."

Citco is just the latest company with Bermuda connections to announce it is opening an office in Halifax, taking advantage of the ample university-educated work force and costs lower than those found in Bermuda.

Recently, Bermuda-based Bank of N.T. Butterfield & Sons Ltd. said its fund services unit would hire about 400 people in Halifax within the next seven years. Last year, Bermuda based fixed-income fund manager West End Capital Management agreed to create 75 positions in Halifax.

The Globe and Mail reports that their sources have indicated that the Bermuda based hedge fund administrator Olympia Capital International Inc. also plans to open an office that will hire about 150 people in Halifax, and that hiring commitments by Bermudian financial companies will soon reach almost 1,000 jobs.

HedgeFund.net has released its Q3 2006 Hedge Fund Asset Flow / Performance Report.

The report estimates single manager hedge fund asset levels increased from $1.725 to $1.786 trillion during the third quarter of 2006. Net new assets allocated to single manager hedge funds increased an estimated $51.5 billion. The increase is less than the two prior quarters, but still represents the third highest inflow since the beginning of 2005. Performance gains added an additional $9.3 billion to total assets. Fund-of-fund assets increased 4.40%, $34 billion in new assets, to an estimated $901 billion.

HedgeFund.net  reports that hedge fund industry assets have grown over 20% in the last 12 months.

From the Times of London:

"Sir Andrew Large attacked London’s ban on listed hedge funds as "anachronistic" yesterday as he was named chairman of a record-breaking new $1 billion (£675 million) hedge fund floating in Amsterdam.

The former Bank of England Deputy Governor and chairman of the Securities and Investments Board, forerunner to the Financial Services Authority, is to chair the new investment vehicle operated by the London hedge fund manager Marshall Wace. If it succeeds in raising its target of $1 billion it will be the world’s biggest listed hedge fund.

Sir Andrew said that London’s restrictions on the listing of single-strategy hedge funds was one reason for the choice of Amsterdam. Single-strategy hedge funds are usually banned from full listings in London because they are not sufficiently diversified and because of restrictions on short-selling. "It’s a historic thing," Sir Andrew said. "I think it’s a bit of an anachronism."

Marshall Wace is the second hedge fund manager this month to choose Amsterdam to raise money in a permanent capital vehicle. Two weeks ago the Anglo-French hedge fund manager Boussard & Gavaudan chose it to raise $562 million.

Investment bankers say more hedge funds are queueing up to float permanent capital vehicles, which are attracting investors precluded from investing in traditional hedge funds.

The FSA said in March that it was considering relaxing restrictions on investment companies. But the earliest the new regime could come in would be the third quarter of next year.

There was confusion last night about whether the new vehicle could have been listed in London, with the FSA claiming that foreign-based investment companies - the new fund, MW Tops, is registered in Guernsey - were already able to list in London.

Sir Andrew’s appointment is a coup for Marshall Wace, whose highly successful investment style has come under scrutiny from regulators amid concern that it might inadvertently encourage market abuse.

Marshall Wace, which has $5.9 billion under management, solicits investment ideas from investment bankers and brokers and rewards the best with generous commissions. That might tempt bankers to exploit inside information, it has been claimed.

However, last month the FSA gave a nod of approval to so-called alpha capture systems, arguing that cheats were more likely to use other methods. Marshall Wace also expects to be formally cleared next month of any wrongdoing in a case involving Alcatel shares in 2002 being investigated by French regulators.

Sir Andrew is being paid a one-off £250,000 by Marshall Wace and will receive £70,000 a year in director’s fees."