Hedge fund redomiciliation trends in evolving markets

Date: Tuesday, June 14, 2011
Author: Wendy Chothia, HedgeWeek

RBC Dexia’s latest survey, undertaken in conjunction with the global consulting firm KPMG, analyses the key domiciliation and redomiciliation strategies adopted by fund managers within the global hedge fund industry, techniques they selected and factors behind their decisions.

While hedge funds have traditionally been viewed as offshore products, the development of more regulated onshore alternatives in EU centres such as Luxembourg and Ireland has spurred new interest in onshore fund solutions. In turn, a number of managers have redomiciled their existing hedge funds, launched new hedge funds onshore or co-domiciled their fund ranges. The growing popularity and increased investment flexibility of UCITS funds has also driven new interest in their use for alternative investment asset classes.

The new report explores key trends, drivers and concerns on domiciliation and redomiciliation. The publication also explores ways in which hedge fund managers are organising and developing their jurisdictional and fund development strategies and looks at the potential impacts of the Alternative Investment Fund Managers Directive (AIFMD) on the selection of offshore and onshore domiciles.

Drawing on the views and experiences of a wide range of hedge fund investment managers, this report offers valuable insight and analysis to investing institutions considering their options for domiciling/redomiciling funds or seeking topical market research on this dynamic and important sector.