Cayman Finance has issued a statement regarding the US Senate Finance Commission confirmation hearing of Jack Lew…
At the recent United States (US) Senate Finance Committee confirmation hearing Mr Jack Lew, President Obama's nominee for Treasury Secretary, was asked about his investment in a Cayman Islands (Cayman) investment fund domiciled in Ugland House.
At this juncture, it is perhaps worth asking why people are still surprised that Americans including both Republicans and Democrats have money invested in Cayman investment funds, when it is certainly the case that all Americans who have a pension fund will likely have their money indirectly invested in a Cayman private equity or hedge fund.
There is nothing wrong with that at all. As the 2008 Government Accountability Office's Report attests, Cayman is the domicile of choice and a centre of excellence for some of the world's leading international investment funds.
Cayman investment funds are an important part of helping to solve the pension funds' need for investment diversification and the global allocation of capital. Some of this capital is, for example, invested in important infrastructure projects in emerging market countries. As a consequence Cayman helps US fund managers manage money for foreign investors, thus supporting jobs and service providers based in the US.
It is high time that Cayman's important role in the global economy and capital markets is better understood by policy makers.