Managers for a fund specialising in Central Asia and the Trans-Caucasus are planning to move their investment management company to Malta from the Cayman Islands to boost investor confidence, according to the Hedge Funds Review.

Sturgeon Capital has also chosen BNY Mellon as the first global custodian for the Sturgeon Fund, and opened a London office, as it upgrades its corporate structure.

The fund, which was launched in 2006 by Clemente Cappello, will remain domiciled in the Cayman Islands.

Chief financial officer Taco Sieburgh Sjoerdsma said the moves were all designed to strengthen the operation of the company and the fund.

He said Sturgeon found Malta “very interesting” as a jurisdiction. “Being EU-regulated, we believe Malta may give investors another level of confidence.”

He said the fund had previously used a network of custodians, said Sieburgh Sjoerdsma, but wanted to reinforce the provision. “Investors are increasingly focused on their process of due diligence,” he said.

BNY Mellon’s emerging markets coverage and strong capitalisation led to the bank’s selection, he said.

The Sturgeon Fund invests in the Central Asia and Trans-Caucasus region, focusing on Azerbaijan and Kazakhstan. The portfolio comprises multiple asset classes including fixed income, special situations and listed equities.

With around $29 million in assets under management, the fund is administered by Custom House Offshore Fund Service.