Hedge fund numbers positive, thanks to growth in master funds

financial services

In a continuation of recent trends, the total number of Cayman Islands hedge funds is increasing, but only because of the growing amount of master funds, which were first registered in 2012.

From April to June, 318 master funds were registered, bringing the total to 2,449. Since the end of June 2012, the number of master funds has increased by 41 per cent (from 1,732), according to Cayman Islands Monetary Authority statistics.

However, registered, administered and licensed funds, excluding master funds, dropped by 41 in the second quarter and by 379 in the past 12 months.

Hedge funds

The total number of those funds stands at 8,760, a decline of 4 per cent in the past year.

Overall, the number of Cayman hedge funds is 11,209, an increase of 3 per cent in the past year.

While master funds have been a bright spot in hedge funds statistics, the numbers are still short of what government expected when it announced master fund registration plans in 2011.

In December 2011, then-premier McKeeva Bush said the new registration fees for master funds would bring in $7 million. Based on the initial and annual registration fee of $2,500 per master fund, the annual revenue to be brought in is actually about $6.1 million.

Banking

The number of banks in Cayman is 221, one fewer than at the end of the first quarter of the year. (Cayman lost a Class B branch.)

The number of banks now is 6 per cent fewer than the 235 banks reported a year ago.

Company management

The number of company managers grew to 93, an increase of two during the quarter and seven during the year (a 7 per cent yearly increase).

The number of corporate service providers increased by one during the quarter and four during the year, and stood at 15 as of the end of June.

Trusts

The number of trust companies continued to fall during the quarter, with 140 reported at the end of June, two fewer than at the end of March and eight fewer than the end of June 2012.

On the other hand, registered private trusts increased by two during the quarter to 85, compared to 70 a year ago (an increase of 21 per cent).