FundBank Ltd.

Cayman Trust Management and Trustee Services^*

Trust beyond limits

FundBank is an industry-leading institutional banking provider, delivering banking solutions to the asset management industry on a global scale.

As the needs of the funds industry are changing, so too have the requirements for banking relationships. At FundBank, we offer a full suite of banking services that are supported by industry-leading technology.

With an enhanced user experience supported by the FundBank Client Portal, we provide a best-in-class approach to banking for investment funds and managers, allowing them more time to focus on what they do best, managing their portfolios and generating alpha.

Our primary trust management services

Our suite of trustee management services are meticulously designed to meet the complex needs of modern asset management firms. Our expertise in acting as a share trustee encompasses both STAR and charitable trust structures.

Strategic trust structures for asset management

Utilizing STAR and charitable trusts, FundBank offers an arrangement whereby our skilled trustees manage the trust on behalf of your beneficiaries with utmost diligence and strategic foresight. This service is particularly beneficial for firms managing diverse and sophisticated portfolios, ensuring each decision aligns with your firm’s long-term objectives.

Technologically advanced trust solutions

Recognizing the importance of technology in today’s financial landscape, FundBank integrates the latest digital tools to streamline trust administration.

Compliance and flexibility in structured finance

Our trust structures are commonly utilized in structured finance transactions. Assets are settled into trusts and a Special Purpose Vehicle (SPV), ensuring a flexible and compliant approach to structured finance transactions.

As trustee, we take on the responsibility of holding management shares on behalf of your fund and its underlying beneficial owners, such as investors or limited partners. Our legal obligation extends to administering management shares for the beneficiaries’ benefit, always operating in a fiduciary capacity.

Tailored solutions for complex liquidations

We also specialize in trust solutions for the liquidation of funds, especially ones that hold illiquid assets. Our approach facilitates the wind-up of funds in advance of liquidating all positions, providing a strategic advantage for firms looking to optimize their asset liquidation processes.

Board-level expertise for private trust companies

We provide industry professionals experienced to serve on boards of private trust companies that in turn serve as trustee to charitable or private trusts. This service ensures that your trust structures are overseen by experts with deep insights into asset management and trust law. Such expertise is invaluable for professionals managing complex asset portfolios and navigating diverse regulatory environments.

Enhanced corporate governance through enforcer roles in STAR trusts

Recognizing the importance of robust corporate governance, FundBank can act as an independent enforcer to that of the trustee in order to further enhance corporate governance systems. This role is distinct from the trustee, offering an additional layer of oversight and governance enhancement.

Why partner with FundBank?

FundBank is committed to delivering trust management services that resonate with the strategic, governance, and compliance needs of contemporary asset management firms. Our approach combines expertise, fiduciary responsibility, and a deep understanding of the financial sector’s nuances, ensuring your trust structures are managed with the highest standards of professionalism and strategic insight.

To find out more about our tailored trust solutions, please reach out to your usual FundBank representative or contact us below.

Frequently asked questions

What is a corporate trust?

A trust is a legal arrangement whereby a person (the Trustee) holds and deals with property (the Trust Fund) on behalf of the beneficiaries. The Trust is created when a person (the Settlor) transfers property to the Trustee, who is then legally obligated to administer that property for the benefit of the Beneficiaries.

What are STAR trusts?

A STAR trust is a specialized type of trust arrangement that was first introduced in the Trusts Law of the Cayman Islands. Unlike traditional trusts, which are primarily used for family and estate planning, STAR trusts can be established for any lawful purpose, whether charitable, non-charitable, or a combination of both. These purposes can be as diverse as philanthropic causes, business ventures, or asset protection strategies. In the context of asset management, Star trusts are ideal for holding shares or assets in a corporate setting, especially for entities that require a high degree of confidentiality and legal protection.

What are some advantages of STAR trusts in asset management?

STAR trusts offer asset management professionals a highly flexible, secure, and confidential tool for a range of financial planning and investment strategies. Their unique structure and legal robustness make them a valuable choice for those looking to optimize asset protection, confidentiality, and the fulfilment of diverse investment objectives.

How does FundBank act as a trustee in structured finance transactions?

As the trustee, FundBank holds the management shares on behalf of a fund and its underlying beneficial owners (e.g., investors or limited partners). The trustee is legally obligated to administer management shares for the benefit of the beneficiaries and acts in a fiduciary capacity.

^* services provided by FundBank Ltd., regulated by the Cayman Islands Monetary Authority

Cayman Trust Management and Trustee Services*