A place to call home

When weighing up domicile options, managers seek the optimal place to do business. That means, among other criteria, regulatory stability, flexible structuring options and favorable tax treatment. Three jurisdictions lead the pack as preferred destinations – Delaware, Cayman Islands and Luxembourg. It will likely take an earthquake to shake them from the top of the fund domicile tree, but other jurisdictions are coming onto managers’ radars – Jersey, Guernsey and Ireland, in particular, are in pole position to mount a challenge to the established three. Even the UK seems to be positioning itself to compete should a no-trade deal with the EU happen.

While barriers will remain high for new entrants looking to attract fund managers, there are subtle shifts at play in the domicile landscape. So, in future, the decision as to where to call home could well be more complex than perhaps it once was.