How emerging fund managers select their domicile

When asked to list their top three dealbreakers for choosing a fund domicile, 47% of survey participants who were emerging managers with less than £300 million in assets gave service quality the highest priority.

According to Elliot Refson, head of funds at Jersey Finance, new managers who are frequently "tight on resources and time" must have quick access to specialized support and advice. "For domiciles, that highlights the importance of being able to demonstrate experience in the right areas, and of the need for good social capital."

"The last thing emerging managers want is to find it a struggle to get the information or help they are looking for – whether that’s legal advice, governance and compliance, non-executive directors, administration, ESG expertise, auditing or accounting."

The importance of a jurisdiction with a strong regulatory framework and legal protection for investors in new funds is shown by the fact that strong regulatory standards are the second most crucial aspect.

"The last thing an emerging manager needs is to establish in a jurisdiction where there are red flags – or the potential for red flags – for investors," continues Refson.

Finally, since many would frequently experience significant challenges when creating a new fund, emerging managers emphasized expenses as an essential aspect in choosing a fund domicile.

In collaboration with Jersey Finance, Funds Europe conducted the "Emerging Manager Survey" to get the opinions of more than 100 alternative fund managers from across the world about the most pressing problems the sector is now experiencing.

By fLEXI tEAM