Mutual Funds

The Cayman Islands enacted its Mutual Funds Law in 1993 and subsequently, funds have become one of Cayman's fastest-growing sectors with over 2,000 funds and assets estimated at some US $200 billion.

What attracts so much fund business to the Cayman Islands? Cayman offers asset managers and fund promoters with ideal market access, highly favourable investor perception, developed infrastructure, professional services and secure regulatory environment.

One of the key advantages of doing international business in Cayman is that the intellectual resources in all disciplines relating to global finance (and the establishment of mutual funds, in particular) are readily available from experienced practitioners. In fact, few other international financial centres come close to matching Cayman's professional resources.

The aim is to ensure that the client's requirements are translated into a structure that derives maximum advantage in the jurisdiction of the investor and of the investment. Therefore, if fund marketing is to be undertaken by private placement to sophisticated investors, the Cayman Islands is and will continue to be the jurisdiction of choice.

Factors contributing to this include the flexibility afforded by the wide, permissible range of structures available to operate funds and the clarity of the Cayman Islands Mutual Funds Law. The legislative framework allows for sophisticated investment techniques which may include leveraging the portfolio to a substantial extent, making loans of securities on and unlimited basis and investing without restriction in any currency or instruments, among other techniques. In 1997, with the establishment of the Cayman Islands Stock Exchange, the funds industry was further enhanced, and Cayman is able to offer a first class listing facility for funds.

Click here for a listing of Mutual Fund Companies.