In The News

Ucits Versus Cayman: Which Fund Structure is Best for You?

Fund Selector Asia

18 Sep 2018

Ucits funds offer better protection for investors than Cayman Island hedge funds, according to Morrison & Foerster partner Jason R. Nelms in the Fund Selector Asia article “Ucits versus Cayman: which fund structure is best for you?

“A Cayman fund may have made some investments that the Ucits fund was not able to access, and those are probably the investments that caused the most trouble upon liquidation,” he said. “That is one factor that could cause a Ucits fund to return more capital quickly in a liquidation scenario.”

On the question of declining demand for Cayman-based funds, Mr. Nelms advised: “For both regulatory and appearance reasons, some investors prefer to invest in an onshore jurisdiction that is more heavily regulated, such as Luxembourg or Ireland, or even the U.S.”



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