An offshore competitor to Bermuda is boasting that it has gained two major hedge funds that were previously domiciled here.

Investment group Liberty Ermitage?s flagship, Liberty Ermitage Asset Selection Fund Limited, which has $700 million of assets under management, and the Liberty Ermitage Resources Fund Limited, which has $30 million of assets under management, have recently redomiciled to Jersey with the help of law firm Bedell Cristin.

Some two dozen funds representing a net asset value of almost $6 billion have recently discontinued in Bermuda as a result of unanticipated outcomes from the European Union Directive on the taxation of savings income. This newspaper understands that in this case however the departures were not as a result of the EUSD.

However Tax-news.com reported that the continuation of both Irish Stock Exchange listed funds was completed in October following several months of work .

The funds redomiciled under Jersey?s year-old Expert Fund Guide regime which streamlines the authorisation process for new funds while aiming to maintain rigorous compliance criteria.

According to the Jersey Financial Services Commission, it is possible to establish Expert Funds in a matter of days. The regime is particularly suited to hedge funds and other more sophisticated investment products aimed at the more experienced investor. As of September 30, 2005, there were 98 Expert Funds established in Jersey.

Martin Paul, Head of Bedell Cristin?s Investment Funds and Private Equity Group, said the arrival of the two new funds was ?good news for Jersey and its thriving expert funds industry?.

?In 2005 Jersey was named as one of the top two jurisdictions for hedge funds in the Legal Week ?Insight? survey of specialist funds advisers and decisions like this only serve to reinforce that message,? he said.