Rogers: It doesn’t help that the investment environment is relatively stable and benign at the moment. When you are trying to launch, it can be tough to persuade investors to pay a certain level of fees when returns in the global markets are positive, with fairly low volatility.


Windsor: We are definitely seeing more new launches. And that includes some smaller managers.


Gauk: There is still a lot of worry about the costs. Clearly, the costs for funds are critically important when profits are not great. We are also seeing a change of mentality in that managers are running businesses much closer, focusing on cost constraint, than in the past.


Harris: We have noted a greater emphasis on corporate governance. Investors expect much more of directors now. But this also means increased fees, which the investors will ultimately have to pay.


Ackerley: Yes that is true, but fees are generally the last thing we discuss with a prospect. Governance models and how we see the landscape are the focus. They are such a small proportion of the total cost for sustainable funds.


Fagan: I agree. If the first thing a potential client asks about is fees, then they are not the right client for us.


Rogers: To be fair, the people in this room represent organisations that operate at the higher end of the spectrum. For us, our focus is on delivering the highest quality service rather than the lowest cost. If a potential client comes to you and fixates on fees then they might not be the right fit for this level, but one of the strengths in Cayman is that the industry is so developed now that there is a range of providers to choose from.


Final thoughts on the future?


Dickie: We should continue to do what we’ve been doing well: being responsive and innovative.


Fagan: We are doing the right things and we need to continue doing that and not overly burden the Cayman market with more legislation. We


“The new regulations coming in have the potential to hit costs. All these things have to be added up; we have to keep a very watchful eye on that.” Paul Harris


must all work together to keep the image of Cayman at the forefront of the industry.


Lock: We must focus on looking at legislation and other things that are going to promote the jurisdiction without being too reactive and over- regulating. Basically, continue doing what we have done over the last 10++ years.


Ackerley: We are in a positive place at the moment—performance is fairly decent and capital is flowing. But we must make sure we don’t take our eye off the ball and continue to provide products that meet the needs of industry. Ultimately it is all about what managers and investors need and if we can provide that then I can’t see any significant threat to the Cayman industry.


Harris: To stay on top we have to continue to give the service we have become renowned for. New legislation is always observed with some trepidation. However, the private and public sectors working together have always got it right in the past and I am confident that this will continue and that whatever form the legislation does or does not take will only strengthen Cayman’s position as the worldwide domicile of choice for hedge funds.


“With Cayman’s expertise in the asset management area there is no reason this couldn’t be a meaningful growth area.” Chris Gauk


10 CAYMAN FUNDS | 2014


Rogers: I am very confident in and proud of the Cayman product. We are an extremely successful jurisdiction. We can talk about heavy regulation but by global standards it’s not a heavily regulated product. We must draw a distinction between regulation we have no choice but to adhere to, and enhancements that are more optional. But I do believe we have been very responsive in the way we’ve embraced appropriate regulation and transparency and that this will continue to benefit the jurisdiction.


Windsor: Confidence is an important word. I travel extensively through the US, Asia and Europe meeting clients and investors. Investors continue to have confidence in the Cayman product and its jurisdiction.


Gauk: Being a relative newcomer, I see that the strength of the Cayman hedge fund offering stems from two areas: intellectual capital and infrastructure. The legal and physical infrastructure all seems to be working very well. We have a highly refined hedge fund offering and it continues to be important to showcase this to the outside world.


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