Guernsey funds industry continues to flourish, says Monterey Insight report

25 January 2021

Fund assets serviced in Guernsey increased by 4% in the year to the end of June 2020 as the island saw an influx of new business.

The independent fund research company Monterey Insight reported in its annual update for the Guernsey market that there were approximately 100 Guernsey-domiciled fund launches during the year, worth some $16.4 billion of assets.

Total fund assets serviced in Guernsey were up to $428.4 billion, with numbers of serviced schemes and sub-funds also increased. Private equity funds remain core to Guernsey’s strength in funds, with PE assets accounting for some 75% of the new launches.

Karine Pacary, Managing Director of Monterey Insight, said:

“Guernsey continued to deliver strong returns despite the uncertainty at the beginning of the year around Covid19. In this difficult and volatile time, Guernsey managed to strengthen last year’s good results and attract new business.

“This year’s result demonstrates again that the Guernsey Fund industry is a centre of excellence for private equity and alternative funds, supported by the trust and professionalism of its service providers and the quality of its regulatory body.”

Leading industry figures were also positive about the state of the industry. Dave Sauvarin, country head, Channel Islands, Northern Trust, the highest-ranked fund administrator, custodian and transfer agent by market value, said:

“The Guernsey Fund Industry has demonstrated its resiliency and stability throughout the challenges of COVID-19, supporting leading fund managers to launch, grow and evolve their assets under management. Guernsey combines a stable funds infrastructure with innovative, swift-to-market solutions for alternative investment funds aligned to evolving investor needs, such as the focus on sustainable investing.”

Tony Corbin, Director at PwC Channel Islands, which leads the auditor rankings, said:

“In these particularly testing times, Guernsey has demonstrated its resilience, capabilities and adaptability and continues to have a thriving investment management industry, being well-recognised as a global centre of excellence for investment funds, providing appropriate structures, a robust regulatory environment and first-class professional services.”

Law firm Carey Olsen remains the largest legal advisers by both number of funds advised and by assets.

Ben Morgan, partner and head of its corporate and finance group in Guernsey, said:

"These are extremely positive results for Guernsey, with the year-on-year rise in AUM and funds serviced in the island showing just how compelling a proposition Guernsey continues to be for fund managers – especially in private equity where Guernsey's expertise is second-to-none.”

Apax Partners continue to be the largest promoter of serviced funds in Guernsey, followed by Cinven and Permira.

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