Some 47% of respondents to a Funds Europe ‘Emerging Managers Survey‘ – which solicited the opinions of emerging managers with less than £300 million in assets – ranked service quality as the important factor for choosing a fund domicile when asked to choose their top-three dealbreakers.
Elliot Refson, head of funds at Jersey Finance, says ready access to specialist support and advice is critical for emerging managers, which are often “tight on resources and time”, adding “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”.
Strong regulatory standards are the second most important factor, highlighting the importance of a jurisdiction with a robust regulatory framework and legal protection for investors in new funds.
“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”, adds Refson.
Finally, emerging managers highlighted costs as an important factor in choosing a fund domicile, as many will often face considerable pressures when launching a new fund.
The Funds Europe ‘Emerging Manager Survey‘ – in association with Jersey Finance – gathered the views of more than 100 alternative fund managers from around the world to discover the most important issues facing the industry.
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