Jersey’s proactive approach as a funds jurisdiction is the focus of an article by journalist Hugh Leask. It was recently published by Alternatives Watch, a popular news platform in the United States on alternative investments, geared toward institutional investors.
The article titled ‘A Different World: How Jersey Finance is Tackling Alts Industry Upheaval’ begins by looking at why alternative investors are pivoting away from collective investment pools towards special purpose vehicles (SPVs) and funds-of-one, and how digitalisation trends are disrupting the asset management industry. It focuses on statistics that point to the rebalancing away from traditional collective investment vehicles, and how this is being driven by trends including economic and operational efficiency, strategic flexibility, and market trends and investment preferences — with a greater sophistication among allocators being key.
The fact that investors are ultimately seeking the expertise of asset managers, but with governance structures that provide greater control, transparency and reporting, is highlighted in the piece. Then the focus shifts onto the factors that make SPVs attractive to both managers and investors, and how the shift has impacted the manager-allocator dynamic when it comes to fees.
Finally, the move towards digitalisation and tokenisation, and the challenges these bring, is explored, and the new Guidance on the Tokenisation of Real World Assets from the Jersey Financial Services Commission is also highlighted. Throughout the article, Jersey’s ability to adapt to significant changes in the alternatives industry is clearly conveyed, as is our jurisdiction’s reputation for stability, alongside our established legal framework and our expert financial services providers for facilitating complex investment structures.
‘A Different World: How Jersey Finance is Tackling Alts Industry Upheaval’ is available to subscribers of Alternatives Watch.
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