This could be the year in which Luxembourg's position as a
European funds jurisdiction comes under some challenge –
promoters and managers have had time to consider options during the
Global Pandemic, and it's likely that changes that have taken
place in other offshore jurisdictions such as Jersey, Guernsey,
Cayman and Bermuda have made them more attractive as an alternative
to Luxembourg. The answer is not just in the lower costs, quick
turnarounds, familiar language or the Anglo-service culture –
a big consideration is that 97% of managers market to three
European jurisdictions or fewer; making the NPPR route a better
option than the full AIFM experience. With the work that has gone
into marketing the Jersey Private Fund and Guernsey Private
Investment Fund in particular, this could be an interesting year
for Channel Islands funds.
