Investor services group IQ-EQ has today published a 58-page report on fund domiciliation around the globe. In the preface, Justin Partington, Group Head of Funds, makes a number of cogent points about the industry's changing landscape. Rather than try to paraphrase him and possibly undermine the messages he is communicating, it is surely better and more agreeable all round to let him speak directly in his own words.

"80 years ago, Judy Garland as Dorothy in The Wizard of Oz coined the immortal phrase "There's no place like home". Today, the options of "home" for alternative fund managers in domiciling fund structures are immense. While some alternative fund managers strongly believe that there is no place like their current fund domicile, the landscape is shifting, driven by regulatory, tax and structural changes. It is more important than ever to keep abreast of the latest trends influencing the choices among global fund domiciles.

"We are in the midst of an exciting era in alternative fund investing, with alternative fund assets forecast to exceed 60 percent compound growth between 2017 and 2023 to US$14 trillion. The exponential growth of the industry is supported by these positive forecasts from data provider Preqin and industry participants are equally bullish.

"As alternative investing expands globally, the decision as to where to domicile an alternative fund will become more complicated in view of a number of relatively new factors such as Brexit and Base Erosion and Profit Shifting (BEPS) that have arrived on the scene recently, as well as the global drive for more substance and transparency.

"Selecting a fund domicile is an essential first step for any fund manager. This is why IQ-EQ wishes to provide fund managers with a composite overview of the most popular jurisdictions for alternative funds to guide them in this crucial selection process.

"Indeed, while jurisdictions such as Cayman, Luxembourg, Singapore and Delaware have gained ground as domiciles for alternative funds, going forward it appears increasingly clear to market observers that a number of factors such as Brexit, BEPS and substance questions are likely to influence managers' domiciliation decision-making in the future.

"The effect of new regulations is expected to be far reaching as all affected fund managers will be required to demonstrate that they have adequate substance from 2019 onwards. Moreover, legislation introducing economic substance requirements for companies domiciled offshore has now been introduced in multiple jurisdictions including Bermuda, the Cayman Islands, Guernsey, Jersey and the Isle of Man.

"The future will continue to reflect past history. As is the case today, no jurisdiction will be able to lay claim to be the right home for every alternative fund.

"Domicile decision-making will likely continue to be influenced by many of the same factors as in the past such as the reputation of a jurisdiction, investor sentiment, set-up timelines and process, regulations, costs and quality of the service providers.

"The one key difference though is that, going forward, Brexit, BEPS and substance questions will strongly influence the domiciliation decision-making process, culminating in a challenging yet exciting future for alternative funds. Or to paraphrase Dorothy, I've a feeling that we're not only offshore any more."

How do I enable cookies in my browser?

Internet Explorer
1. Click the Tools button (or press ALT and T on the keyboard), and then click Internet Options.
2. Click the Privacy tab
3. Move the slider away from 'Block all cookies' to a setting you're comfortable with.

Firefox
1. At the top of the Firefox window, click on the Tools menu and select Options...
2. Select the Privacy panel.
3. Set Firefox will: to Use custom settings for history.
4. Make sure Accept cookies from sites is selected.

Safari Browser
1. Click Safari icon in Menu Bar
2. Click Preferences (gear icon)
3. Click Security icon
4. Accept cookies: select Radio button "only from sites I visit"

Chrome
1. Click the menu icon to the right of the address bar (looks like 3 lines)
2. Click Settings
3. Click the "Show advanced settings" tab at the bottom
4. Click the "Content settings..." button in the Privacy section
5. At the top under Cookies make sure it is set to "Allow local data to be set (recommended)"

Opera
1. Click the red O button in the upper left hand corner
2. Select Settings -> Preferences
3. Select the Advanced Tab
4. Select Cookies in the list on the left side
5. Set it to "Accept cookies" or "Accept cookies only from the sites I visit"
6. Click OK

Investor services group IQ-EQ has today published a 58-page report on fund domiciliation around the globe. In the preface, Justin Partington, Group Head of Funds, makes a number of cogent points about the industry's changing landscape. Rather than try to paraphrase him and possibly undermine the messages he is communicating, it is surely better and more agreeable all round to let him speak directly in his own words.

"80 years ago, Judy Garland as Dorothy in The Wizard of Oz coined the immortal phrase "There's no place like home". Today, the options of "home" for alternative fund managers in domiciling fund structures are immense. While some alternative fund managers strongly believe that there is no place like their current fund domicile, the landscape is shifting, driven by regulatory, tax and structural changes. It is more important than ever to keep abreast of the latest trends influencing the choices among global fund domiciles.

"We are in the midst of an exciting era in alternative fund investing, with alternative fund assets forecast to exceed 60 percent compound growth between 2017 and 2023 to US$14 trillion. The exponential growth of the industry is supported by these positive forecasts from data provider Preqin and industry participants are equally bullish.

"As alternative investing expands globally, the decision as to where to domicile an alternative fund will become more complicated in view of a number of relatively new factors such as Brexit and Base Erosion and Profit Shifting (BEPS) that have arrived on the scene recently, as well as the global drive for more substance and transparency.

"Selecting a fund domicile is an essential first step for any fund manager. This is why IQ-EQ wishes to provide fund managers with a composite overview of the most popular jurisdictions for alternative funds to guide them in this crucial selection process.

"Indeed, while jurisdictions such as Cayman, Luxembourg, Singapore and Delaware have gained ground as domiciles for alternative funds, going forward it appears increasingly clear to market observers that a number of factors such as Brexit, BEPS and substance questions are likely to influence managers' domiciliation decision-making in the future.

"The effect of new regulations is expected to be far reaching as all affected fund managers will be required to demonstrate that they have adequate substance from 2019 onwards. Moreover, legislation introducing economic substance requirements for companies domiciled offshore has now been introduced in multiple jurisdictions including Bermuda, the Cayman Islands, Guernsey, Jersey and the Isle of Man.

"The future will continue to reflect past history. As is the case today, no jurisdiction will be able to lay claim to be the right home for every alternative fund.

"Domicile decision-making will likely continue to be influenced by many of the same factors as in the past such as the reputation of a jurisdiction, investor sentiment, set-up timelines and process, regulations, costs and quality of the service providers.

"The one key difference though is that, going forward, Brexit, BEPS and substance questions will strongly influence the domiciliation decision-making process, culminating in a challenging yet exciting future for alternative funds. Or to paraphrase Dorothy, I've a feeling that we're not only offshore any more."