Investors Led By Regulation and Legal Systems in Fund Domiciliation Choices, Study Finds

Online research conducted among 83 European institutional investors finds that sensible regulation and a familiar legal system are the two most important factors for investors when considering where potential investment funds are domiciled.

Sensible regulation’ was cited by 92% of respondents, followed by ‘familiar legal system’ (85%) and ‘expertise’ (84%). ‘Speed to market’ was cited by more than a quarter (27%) of respondents.

The research, commissioned by Hassans International law firm and Deloitte Gibraltar, found that half (50%) of European institutional investors believe it is important for non-European fund managers to be able to market funds across the whole of Europe. One in five (20%) respondents said it is very important with just 15% believing it is not important.

According to the study, which also canvassed view on asset allocation and sentiment towards alternative investment funds, more than twice as many European institutional investors believe investor allocations to hedge funds and other alternative investments will increase over the next three years as opposed to decrease (46% and 21% respectively).