Digital Assets Report

Funds, Intelligence, Managers, Weekly UCITS News (Friday)

Like this article?

AIFMD could see more funds re-domiciling in Europe but Asia and Middle East potential offshore centres for AIFs

November 27, 2011
- 4:20 pm

Related Topics

Asia and the Middle East could potentially become major offshore centres for alternative investment funds according to a report published by the Association of the Luxembourg Fund Industry (

Asia and the Middle East could potentially become major offshore centres for alternative investment funds according to a report published by the Association of the Luxembourg Fund Industry (ALFI) this week. The report, compiled by Oliver Wyman, said that the AIFMD will likely lead to the re-domiciliation of alternative funds in European onshore jurisdictions, particularly amongst Europe-based fund managers, but that offshore centres like the Caymans would continue to remain major fund domiciles. Regulatory and investor pressures could lead to some AIF managers choosing to domicile in well-established onshore centres like Luxembourg or Ireland. But the study, presented at the ALFI conference in Luxembourg, showed that increased appetite exists among investors and managers for more domiciliation in Asia and the Middle East.

Co-author, Stephen Jaecklin, was quoted by Citywire Global as saying: “We expect over the next few years there to be an offshore centre established in Asia and/or the Middle East, which is set to open out more as a market. This is particularly clear when you look at different asset classes and the connection between managers and the location of the domiciled funds they run.” He believed it would be tough for Luxembourg and Dublin to further expand their role as major centres of domiciliation for UCITS due to increased competition but did not discount potential benefits from a growth in co-domiciled funds. Marc Saluzzi (pictured), chairman of ALFI, commenting on the report, said: “Whilst Europe has established UCITS as a global fund brand, we have a long way to go if we are to achieve the same in the alternative fund industry. We need to work hard to ensure that we have the right regulation and infrastructure to attract funds here. In Luxembourg we are also committed to help fund managers and institutional investors to leverage the development of regulated European alternative funds.”

Like this article? Sign up to our free newsletter