Cayman see near 7% fall in funds since 2013
(CNS): The Cayman Islands saw another fall in the number of funds registered in the jurisdiction at the end of 2016, according to figures released by the Cayman Islands Monetary Authority (CIMA) in its recently published Investments Statistical Digest for that year. Since 2013, when the number of funds peaked at 11,379, there has been a 6.97% decrease in registered funds here over the last three years. Nevertheless, CIMA said that Cayman remains a jurisdiction of choice and the net asset value of the funds held had increased to US$6.142 trillion at the end of 2016 due to asset appreciation, positive net income and lower performance, administration and management fees incurred by the funds.
In what is now a relatively dated report, CIMA stated that at the end of 2016, there were 10,586 funds registered/licensed under the Mutual Funds Law, 354 fewer than in 2015. But according to more recent statistics on the website, there were 10,630 funds registered in Cayman as of September 2017.
Analyzing the changes and trends that emerged during 2016 across the fund sector, CIMA said that investment managers who fail to innovate, reduce fees and adopt new technologies will not survive.
“New approaches towards risk and reward and niche products will have to be developed as investors become more sophisticated and have mobile access to more and better information,” the report reads.
“Mutual funds are also being challenged by the performance of the US equity bull market and the impending increase in US interest rates. Investment funds continue to utilize gates and suspended redemptions as well as side pockets to manage liquidity and continue their appeal to investors.”
Category: Finance, Financial Services
