Tue, Jul 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Cayman funds “exodus” is a load of blarney

Wednesday, January 19, 2011
Opalesque Industry Update - A report published in The Financial Times on January 16 once again perpetuates the myth that The Cayman Islands is suffering at the hands of Ireland regarding the re-domiciling of funds.

The story, quoting the Irish Funds Industry Association, claims the hedge fund industry is drifting away from The Cayman Islands

In December, the Irish stated that they have doubled their registered funds to 7.4%, but these statistics pale in comparison to the Cayman fund industry, which continues to grow by approximately 95 funds per month, according to the Cayman Islands Monetary Authority. The regulator is reporting a natural attrition rate of de-registrations of approximately 5%, which has been a typical rate over the past several years, indicating stability in the Cayman industry.

The regulator has also confirmed that only four funds have cited re-domicilation to the EU as their reason for termination – two of those funds to Malta and two to Luxembourg.

“If we sent out a press release each time a Cayman fund was launched, the international media would be flooded with two such announcements each day. A doubling of registered funds to 7.4% does not constitute news. What astounds me is how these insignificant claims get column inches. These are statistics to be shy about.” stated Cayman Finance chairman Anthony Travers.

A recent study conducted by International Fund Investment has revealed that 60% of investors surveyed are against more regulation as it adds to increased costs (which directly impact returns) with no other discernable benefits, including investor protection.

This study also showed that only 18% of fund managers are even considering moving funds to the EU.

“For the institutional investors and managers the well understood path of the Cayman fund – non-bureaucratic, quick set up times, high quality service providers and its solid reputation is preferred Cayman is well-known and that familiarity breeds trust,” says Simon Osborn of International Fund Investment. “A number of managers believe that the AIFMD could drive managers out of the EU and only managers serious about EU distribution will have EU domiciled funds. The rest will continue to use offshore structures,” continued Osborn.

“Comparing the information of the Cayman Islands Monetary Authority and the International Fund Investment report supports what the Cayman service providers are seeing,” stated Travers. “Investors are not looking for increased regulation. They are looking for returns and the emphasis is now on stress-tested products such as Cayman’s and effective due diligence to best protect their investments,” he continued.

When asked about the viability of the Irish claims of gaining large numbers of funds from Cayman, Travers pointed out that Ireland as a whole is in serious financial difficulty and it would be prudent for any investor or manager undertaking proper due diligence to consider very carefully the longevity and sustainability of Ireland as a domicile.

Cayman is well placed in terms of EUAIFM Directive and is compliant on the relevant issues. Cayman Finance is currently commissioning a ‘gap analysis’ to highlight any areas for improvement that will have positive effects in the long run.

(press release - 19th January, 2011)


Cayman Finance is a private-sector membership-based organisation that has been established to promote Cayman’s financial services industry through public relations, public affairs and marketing initiatives. The organisation is chaired by Anthony Travers, OBE. www.caymanfinance.ky


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Bridgewater turns bearish on China[more]

    Komfie Manalo, Opalesque Asia: The world’s biggest hedge fund Bridgewater Associates and one of the most vocal of China’s potential is now turning its back against the world’s second largest economy as it joins a growing list of high-profile investors who are challenging China’s potentials.

  2. Launches - Ex-Brevan Howard star Rokos builds team for new fund, Former Och-Ziff manager’s firm starts health care hedge fund, Industry veterans launch commodity investment firm Aron Capital Management, Nikko Asset Management launches two UCITS funds, Capital Group plans to debut Asian investor targeted fund[more]

    Ex-Brevan Howard star Rokos builds team for new fund From WSJ.com: Chris Rokos, a former star trader at Brevan Howard Asset Management LLP, has hired an economist from Nomura to join the team he’s assembling for his much anticipated hedge fund launch. Mr. Rokos, whose firm is due to b

  3. Institutions - Pension fund dismisses Texas consultant, Rhode Island pension fund gets 2.2% investment return, far below assumed rate of 7.5%, New Jersey pension investments see a drop-off in returns[more]

    Pension fund dismisses Texas consultant From Sandiegouniontribute.com: The county retirement board on Thursday terminated the Texas consultant who was given the reins of the $10 billion pension fund, and whose investment picks left many employees and retirees feeling taken for a ride.

  4. SWFs - Sovereign wealth funds paid around $14 billion in fees[more]

    From SWFinstitute.org: When it comes to the financial sector, asset management is one of the most profitable industries in the world. The Boston Consulting Group put out a 2014 figure saying there is US$ 74 trillion worth of professionally-managed assets. One of the fastest growing institutional inv

  5. Investing - Carlyle teams with TCW in push for ordinary investors[more]

    From Bloomberg.com: Carlyle Group LP isn’t backing down from its goal of offering alternative strategies to the masses, despite early setbacks. The Washington-based firm is teaming up with TCW Group, which is majority owned by Carlyle funds, to offer three vehicles that give ordinary investors acces

 

banner