Beware of unwanted side effects from side letters

In the current competitive hedge fund marketplace the use of side letters between investors and funds has become commonplace. Side letters are used by funds and fund managers to draw in investors who jockey for the most favourable terms possible.   

 

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.

Updates further enhance Cayman’s appeal

The Cayman Islands has for decades been one of the world’s leading banking and financial centers, currently ranking as the fifth largest banking centre worldwide, with over 200 banks, including 40 of the world’s 50 largest banks, and over US$1.5 trillion in assets. 

 

Sticking it to the family, Swedish style

Based on a “slam dunk” set of facts, the Cayman Islands Grand Court recently delivered a very strong message to directors of Cayman Islands companies – at your peril do you deliberately ignore your fundamental legal obligations.

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.

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...

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?

Private fund performance after the Dodd-Frank Act

The American private fund industry is a significant representative of Wall Street’s interests and regulating hedge funds was a politically sensitive undertaking since the inception of the industry 

 

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.  

 

Understanding investor due diligence

The investor due diligence process has evolved with the growth of the hedge fund industry. What was once a short and rather perfunctory process has grown into one which today is highly quantitative and detailed.

 

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. 
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...

Know your score and get to the “sweet spot”: The importance of business...

This article discusses the importance of business process automation within an asset management firm at all stages of development and how these organisations can measure their current processes versus investor expectations.

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.

 

 

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.

Exposure draft for IFRS investment entities

For the first time the International Accounting Standards Board has proposed industry specific guidance for investment entities.

Regulators to decide over UCITS split

European regulators will decide early this year whether UCITS funds should be reclassified as “complex” and “non-complex” products in order to improve transparency of information about investment strategies.

 

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.

 

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.

‘Can do’ approach heralds a settlement for Madoff investors

The recently court appointed principal liquidators of a Cayman Islands registered Madoff feeder fund, Herald Fund SPC (In Official Liquidation), immediately began a ‘hearts and minds’ campaign aimed at establishing trust with the trustee.