Over recent years, alternative funds have moved increasingly mainstream as investors have sought to balance their appetites for risk and return and achieve diversification in their portfolios.
We’ve also seen growing amounts of private capital moving into a traditionally institutional area, whilst alternatives are also piquing the interest of investors in an increasingly diverse range of global markets.
Add a growing raft of regulatory initiatives: AIFMD, BEPS and substance, reporting requirements: CRS and FATCA, and digital disruption into the mix, and this is all throwing up both opportunity and complexity for the alternatives industry – and for the domiciles that serve them.
To compound the issue, the impact of Covid-19 has served to unsettle markets and add even more uncertainty to what was already a complex picture.
Understanding what is going on “underneath the bonnet” and shaping the alternatives space, not just in the coming months but in the long-term too, is absolutely vital for specialist fund hubs. Certainly, as a forward-thinking centre specialising in alternative funds, which now make up more than 80% of its total funds business, it is Jersey’s intention to stay at the cutting edge of thinking in this space.
This survey sheds some light on a sector that continues to evolve and provides some clarity around what managers are looking for in their partner jurisdictions to help get their funds to market seamlessly, cost-effectively and robustly. It also sets out what are likely to be some of the key battlegrounds over the coming years: cost, expertise, distribution, regulatory excellence, governance and sustainability. We hope the findings are useful to you.
Elliot Refson, director of funds, Jersey Finance
Continue reading the report: The appetite for alternatives »
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