Established managers in the alternative funds space tend to have networks and processes in place when it comes to domicile selection, structuring options and professional support relationships.
A survey of up-and-coming asset managers, in association with Jersey Finance, finds that the quality of funds services, regulatory standards and costs are the most common drivers behind choosing a domicile.
To get a better idea of the factors influencing emerging managers when choosing a fund domicile, it helps to understand the operational challenges they face on a day-to-day basis. Funds Europe asked them what they consider to be the biggest challenges and found they are concerned about a range of issues (Fig 2).
Emerging managers are finding it increasingly difficult to find the solutions they need for a successful launch (Fig 5). A strong fund domicile should be able to react and provide managers with what they need.
One of the most crucial decisions an emerging manager can take is choosing where to domicile its funds. The domicile will have a considerable impact on a manager’s day-to-day operations and its profitability.
The post-pandemic outlook is challenging for emerging fund managers. The conditions that supported the low interest rate and low inflation environment since the Global Financial Crisis have already started to be eroded by central banks and policymakers.
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