With Brexit negotiations under way, is it a good time to move your funds? Chisomo Kaferawanthu provides some insights.
The choice of where funds are domiciled is vital as it can affect a fund’s ability to raise capital, its performance, operations and ultimately its sustainability. The jurisdictions that provide the infrastructure for efficient markets are attractive to investors and investment managers, as they usually have specific expertise and stable operational costs, which can all contribute to a fund producing higher returns.
The specific benefits and expertise differ between locations but the most notable fund jurisdictions such as London, Luxembourg, the Channel Islands and Dublin have access to significant markets and they have a distinguished record of attracting large institutional and retail investors. With article 50 having been triggered, Britain stands to lose, or have limited access to, the single market.