Conflicts of interest between investment managers and their investors:

All investment management firms need to pay very careful attention to a recent paper issued by the UK’s Financial Services Authority (FSA) concerning the management of conflicts of interest between asset management firms and their customers.  

 

Fund governance: The trend toward split boards

This industry trend is being driven by investors who consider that the challenges of such a model are far outweighed by the benefits provided to them by a board that will be more effective in all situations. 

 

Be careful what you wish for…

The recent decision of the Financial Services Division of the Grand Court of the Cayman Islands in the matter of the Weavering Macro Fixed Income Fund Limited was met with a wall of noise from the industry in the Cayman Islands. Although that of itself was no surprise, the particular tone of that noise was surprising to me at least.

Into the spotlight: Independent fund directors

Independent directors and non executive directors have come into the spotlight in recent years following the well reported failings of firms such as Weavering Capital.  In earlier examples, Beacon Hill Asset Management and Bear Stearns High Grade Structured Credit’s offshore fund directors were singled out for criticism for failing in their duties. 

Green Climate Fund; evolution or revolution in climate finance ?

It is universally accepted that it is not possible for such large amounts of money to be mobilized by efforts of the public sector alone. A step change in the current state of climate finance with the inclusion of the private sector is essential to achieving this. A metaphorical revolution in climate finance is needed.

 

Unit trusts: Forget-me-not

Read our article in the Cayman Financial Review Magazine, eversion The structuring of investment funds as unit trusts has been and continues to be the...

Where there’s smoke, is there fire? Some red flags in hedge fund fraud

We have identified certain red flags that we have seen in more than one situation and provide some practical guidance that investors may wish to consider to mitigate the risk of being victims of a fraud. 

 

 

How to address increased compliance cost for private funds

In the long run, private fund advisers may decide to forego the services of third party service providers and device strategies that allow them to fulfill their reporting obligations under the Dodd-Frank Act more effectively, thus lowering compliance costs further.

 

Alternative investments: Issues with valuing the invaluable

The enforcement division of the SEC’s Asset Management Unit has recently brought a number of complaints against various hedge funds and their investment managers.  

 

The evolving role of hedge funds in institutional investor portfolios

Institutional investors face an almost unprecedented set of challenges. The post-crisis period has been one of slow economic growth, low or even negative real interest rates, volatile markets and increasing geo-political pressures.   

 

Gavel and block on a table with a name plate in front with 'Insolvency' written on it.

The need for an insolvency fail-safe in Cayman

Directors of Cayman companies owe fiduciary duties to the company to act in the interests of the company as a whole. When the company...

Fund governance that runs like a Swiss watch

In the current investment climate, is any institutional investor going to invest in your fund if your service providers deliver an unregulated service?

Transparency for fund directorships: It’s already here

The Cayman director class has not helped its cause as some (but by no means all) of its members resist exercising self-restraint, do not limit the number of directorships they take on, and become rather defensive and secretive when asked about the number of directorships they hold.

 

Hedge fund valuations: The importance of a robust process, applied with rigour

Politicians make much of sharing values with their constituents, though they struggle at times to elucidate precisely what those values are and what it is that is of value to both sides of the equation.

 

Drawing a line in the sand over the right to information

Concerns in the U.S. and Europe over security leaks and the debate about access to public versus private information runs in some ways parallel to the discussion regarding the information investors prefer and require to make informed decisions about their investments in Cayman Islands funds.

 

Hedge fund due diligence: The last line of defence

Investors expend substantial time and resources on due diligence. However, much of their efforts are front loaded, focused on quantitative measures with a bias towards initial due diligence, ie spotting the “bad apples” before they are included in a portfolio

Current status of Islamic finance in the United States

Islamic finance is the fastest growing sector in the financial services industry, having grown by over 20 per cent annually in recent years, and estimates of current global Islamic banking assets under management range up to $1 trillion.

Cayman funds stand strong in new era of governance

With the global hedge fund industry transitioning into a new era of heightened regulation and stricter fund governance, the Cayman Islands are extremely well placed to respond to the associated challenges.

 

 

Private equity investment into Africa: The Cayman and Mauritius route

The invitation in December 2010 by China to South Africa to join the BRIC group of major emerging economies, to create the ‘BRICS’ acronym, has heralded a new dawn, not only for the nation of South Africa, but arguably for the continent of Africa as a whole.

Shariah compliant investment funds:

There is growing demand from investors domiciled in the Gulf Co-operative Council (GCC) region for investment portfolios that include Shariah compliant instruments. Although many sovereign wealth funds may invest in other noncompliant products, a growing part of their diverse portfolios is Shariah compliant.
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