A recent presentation attended by FinanceMalta and given by International Fund Investment (IFI) referred to an IFI survey which found that 76% of those interviewed are aware of the fact that Malta can be used as a base for their funds or to open an office there, or both.

As one interviewee put it, Malta is “another option” for those looking for a base in the EU. One manager said: “Two years ago I wouldn’t have considered it but it now appears to be gaining momentum.” Another interviewee stated: “We are setting up an office there right now…we like the fact that there are other managers already there.”

The presentation, on ‘Manager migration, fund servicing and domiciliation in the Mediterranean: The alternative to Ireland and Luxembourg?’ was held at the Chesterfield Hotel in London.

The IFI survey found that 62% of alternative fund managers interviewed are re-domiciling or are launching funds in the EU. When asked what views investors have on existing domiciles like Gibraltar, Ireland, Luxembourg and Malta, the overwhelming response was that the domiciles in question are well known.

Interviewees stated that they prefer well-known domiciles that are used substantially by other investors and managers. As one interviewee put it, “we don’t like surprises.” Ireland and Luxembourg are known to all respondents and therefore liked for this reason. But the majority of investors (83%) are aware that Malta is becoming a commonly used alternative to Ireland and Luxembourg.

Of the 10 major domiciles available to the investor, Switzerland was considered to be the most popular, followed by Malta and Guernsey. Hong Kong, Jersey, Gibraltar and the Isle of Man followed in that order. When asked in which jurisdiction investors were likely to domicile their EU-based funds, Ireland was considered to be a major preference followed by Luxembourg and Malta. When asked if they would consider relocating funds to Malta or Gibraltar as an alternative to Luxembourg or Ireland, 18% said that they are looking at moving funds to Malta or Gibraltar whilst a further 26% are open to the idea, particularly if these locations continue to offer fund servicing on the same level as Ireland or Luxembourg but at lower costs.