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By Tatziana Paraguacuto-Maheo, London partner at Walkers Global, an offshore law firm headquartered in the Cayman Islands.
In the last couple of years, macroeconomic headwinds, higher interest rates and geopolitical unrest have written the story of the financial sector. These arid conditions have tested every major economy but have also left fund management scrambling for new options to raise capital.
You'd think funds had succumbed to the pressures. Instead, hedge, hybrid and other open-ended funds have adapted and learned to thrive despite the challenges.
We're here to look at the state of the market and exactly how the industry has acclimated to the new normal.
A snapshot of fund jurisdictions
Recent data from the US Securities and Exchange Commission (SEC) reveals the top jurisdictions for fund formations in Q3 2023, with the US holding 52.4% of global fund domiciles and the Cayman Islands with 32.7% of the share. For comparison, the next jurisdiction, Luxembourg, is home to 4.9% of global fund formations.
This is backed up by the Cayman Islands Monetary Authority (CIMA)'s latest stats on open-ended and mutual fund registrations: In Q1 of 2024 there were 8,685 registered mutual funds, compared to 8,499 in 2021. As for private funds, these have increased from 14,679 in 2021 to 16,787 in Q1 of 2024.
All of this points to investment hubs like the Cayman Islands staying steady and even growing, despite the global economic ...................... To view our full article Click here
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