Review of the Funds in Cayman Islands

Financial sector business in the Cayman Islands is regulated by the Cayman Islands Monetary Authority (CIMA). Also, after the Revision of the Mutual Funds Law in 2015, the regulator on a yearly basis releases digests on the funds industry. The latest one was issued on December 29 revealing the data for 2016.

This year has mostly showed a decrease in number of registered funds except for Master funds that reported growth in 2016. In general, licenses and/or registrations were issued for more than 10 and a half thousands of funds. It is less than in 2015, but only by 354. Therefore, the decrease is insignificant.

However, there is an important increase in assets that are managed by funds. Its net has increased by more than USD 450 billion. For both, registered funds and master funds, increase reached 67%. Within two years, Monetary Authority observed a net capital outflow. At the same time, it stabilized in 2016 because of the labor market strengthening and increase of interest rates.

It is important to mention that people who really invest in funds have now more experience and know better which fund suits them the most. A 26% increase in performance fees support this fact.

Who does the administration of all these funds? Digest statistics show countries who own most of the funds created in 2015-2016. These are the USA and the Cayman Islands itself. The US manages up to 70% of all the funds. Net asset value of the US-managed funds is USD 2.526 trillion.

The Cayman Islands Monetary Authority also foresees that evolution and development of the funds sector in the Cayman Islands will continue to progress. Offshorelicense Ltd is continuously observing the changes in investment climate all over the world. Do not miss the latest news on our blog!