Administrators could benefit as investors look to cut costs

Jersey's funds administration sector could be in line to benefit as onshore fund managers look to cut the costs of providing non-core services, according to a senior manager at Ernst & Young.

Senior manager Pieter du Plessis
Senior manager Pieter du Plessis

Jersey's funds administration sector could be in line to benefit as onshore fund managers look to cut the costs of providing non-core services, according to a senior manager at Ernst & Young.

The comments from Pieter du Plessis come in the wake of a survey that showed that investors want management fees to cover overhead costs and not act as a source of profit for fund managers.

As a result, the survey of managers of private equity real estate funds indicated they would be looking for cheaper ways of providing services such as fund administration and accounting in future.

Mr du Plessis said that the results pointed at an opportunity for Jersey because onshore managers will be looking to outsource.

Comments for: "Administrators could benefit as investors look to cut costs"

good good good

E&Y advertorial courtesy of JEP

J-Cat

and when it comes to outsourcing fund admin, there's nowhere better value than Jersey. Oh, hang on a minute...

Fund administrator

This article and its conclusions don't make sense. PE and Real Estate managers looking to cut costs by outsourcing from onshore to offshore will increase their costs by coming to Jersey. Offshore is far more expensive due to excessive application of regulation, cost of labour, rent, etc. it may make some sense if du Plessis is referring to Mauritius, India and similar low cost centres, but definitely not Jersey.

sporran

Absolutely. If there is no tax advantage outsourcing to Jersey is not a cost effective option.