Stability, expertise and flexibility have been highlighted as key components of the international fund domicile of the future in a report published this month by IFI Global and supported by Jersey Finance.
The Evolution of the International Fund Jurisdictions report is the latest in a series by IFI Global and Jersey Finance, with previous reports focusing on fund domiciliation, structuring and fund governance.
The new report explores the origins of fund domiciliation and how locations around the world with no previous connection to funds now play a fundamental role in the global funds landscape, servicing more than $16trn of fund assets.
The report also explores how those centres – including Jersey, BVI, Bermuda, Cayman, Guernsey, Ireland and Luxembourg – have evolved and what their experiences tell us about their future direction.
Areas of focus
• Key dates, from the establishment of the first expatriate banking operation in Jersey in the 1960s to EU alternative fund regulation in 2018
• The origins of the international funds industry in the 1980s, including the first investment funds offered to expats and the largely Anglo-Saxon asset management industry of the 1990s
• The dawn of alternatives, including the introduction of regulatory measures, the shift towards institutional investors, the heightened focus on governance and substance in the wake of the global financial crisis and the impact of Brexit
• The future, including the growth of sustainable finance and crypto funds and the importance of first mover advantage when it comes to new investment categories
Elliot Refson (pictured), Head of Funds at Jersey Finance, said: “There’s no doubt the fund jurisdictions that will be most successful in the future will be those that are stable with strong expertise and infrastructure, and robust but flexible regulatory frameworks.
"This has been Jersey’s mantra for the past 20 years and we’ve seen the fruits of that in the growth of Jersey in recent years as a trusted funds domicile.
“There will undoubtedly be more changes over the coming decades and our focus will remain on retaining our position as an integral part of the global fund landscape.”
The new research can be viewed and downloaded here