The Cayman Islands is the leading jurisdiction for the offshore
investment funds industry due to its combination of flexible and
appropriate regulation, an approachable and effective regulator,
professional service provider expertise, high reputation among
investors and a tax neutral fiscal regime.
Overview
Investment funds established in the Cayman Islands fall into two
broad categories: open-ended funds and closed-ended funds.
Open-ended funds provide investors with voluntary redemption or
repurchase rights and closed-ended funds do not provide investors
with those rights. Typically, open-ended funds will invest in
liquid assets which can be readily realised to fund redemptions (eg
listed, liquid, tradable securities) and closed-ended funds will
invest in non-liquid assets requiring time to liquidate/realise
value (eg real estate, unlisted companies).
