Japanese portfolio investment in the Cayman Islands rose to JPY128.4 trillion ($819.9 billion) at the end of 2024, up from JPY 120.4 trillion a year earlier, according to Japan’s Ministry of Finance statistics. IMF Portfolio Investment Survey data shows this increased further to $853.1 billion in the first half of 2025.
The figures point to continued Japanese demand for Cayman-domiciled fund vehicles, particularly unit trusts, as investors in Japan increase allocations to overseas funds and private markets.
Japanese holdings of Cayman investment fund shares rose to JPY 101.1 trillion at the end of 2024, up from JPY 93.5 trillion in 2023 and JPY 87.6 trillion in 2022.
The Cayman Islands accounted for 62.4% of Japan’s overseas investment fund holdings in 2024 and ranked second only to the United States as a destination for Japanese portfolio investment globally.
The growth reflects changes in Japan’s investment market, including renewed inflation and increased demand for global assets such as private equity, private credit, hedge funds and infrastructure investments.
As Japanese capital continues to diversify internationally, Cayman acts as a gateway to global opportunities through structures that are familiar, flexible and internationally recognised.
Cayman Islands Monetary Authority data shows 316 Cayman-domiciled funds with Japanese investment managers in 2024, with US$103 billion in net assets.
Samantha Widmer, Director and Head of Funds & Capital Markets at Cayman Finance, said Japan is one of the most important international markets for Cayman’s funds industry.
“The latest figures show clear growth in Japanese investors using Cayman structures, particularly for unit trusts. The increasing use of Cayman demonstrates long-standing confidence in the jurisdiction’s legal framework, tax neutrality, regulatory credibility and the depth of its professional services ecosystem.”
She said, “As Japanese investors continue to broaden allocations to overseas and alternative strategies, Cayman remains well-placed to support this demand. Cayman fund vehicles provide a trusted and efficient bridge between Japanese capital and international investment opportunities.”
Widmer will visit Japan from May 11-15 as part of a Cayman delegation that includes Premier André Ebanks. The group is scheduled to meet investment managers, institutional investors, distributors and legal advisers active in the Japanese market.
