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Laxman Pai, Opalesque Asia: An overwhelming majority (85%) of alternative fund managers expect to see increased demand for investment vehicles to be based in international financial centers (IFCs) over the coming three to five years, said a study.
According to a global study of 100 senior-level alternative investment managers conducted by Ocorian, this will be driven by a skills gap and potential tax increases in their local jurisdictions to combat the impact of Covid-19.
On a regional basis, Asia-based fund managers are the most bullish about the use of IFCs for funds and other investment vehicles with 96% anticipating this, ahead of North America and Africa (both 92%), considerably ahead of Europe, which saw only 60% of investors expect to see an increase.
"Local skills shortages in their existing jurisdictions were cited by 81% of respondents as the biggest driver behind the growing popularity of IFCs, closely followed by likely tax increases resulting from the economic impact of Covid-19 (74%). The impact of Brexit (35%) and increasingly complex local regulation (22%) are likely to have much less influence on their choice of IFCs," said the study.
The study highlights how investor preference is playing a crucial role in encouraging fund managers to redomicile their funds to an IFC, with 71% of respondents citing this factor, ahead of attractive structuring and distribution options (53% and 49% respectively).
According to the study, the three IFCs ex...................... To view our full article Click here
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