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Strength of recovery in Guernsey’s funds sector reinforced

27 January 2022

Guernsey’s excellence as a jurisdiction of choice for funds has been recognised in the most recent Monterey Insights annual Guernsey Fund Report.

The 27th edition of the report highlighted the strength of the recovery in Guernsey’s funds sector in the Covid-19 pandemic.

Figures from the Guernsey Financial Services Commission in the second quarter of 2021 showed an increase of 20% over 12 months – an all-time high of the net asset value (NAV) of funds domiciled in the island.

The report showed that the number of schemes serviced in the island rose by 87 to 1,222, while the total number of sub-funds increased by 71 to 1,443.

Private equity/venture capital funds remain the most popular product of serviced funds topping asset allocations with US$388.4bn, followed by Alternative Investment with US$60.8bn.

The same trend applies for Guernsey domiciled funds. As was the case in the previous years, private equity/venture capital funds were again the most popular by AUM and accounted for $307.2bn, followed in second position by Alternative Investment funds at $50.2bn.

Of Guernsey domiciled schemes, Alternative Investment funds enjoyed the largest increase of assets by 54%, followed by Private Equity/Venture Capital funds with a 31% increase of assets.

More than 90 new groups and sub-funds serviced in Guernsey were launched during the year. New business accounted for US$24.4bn of assets, of which US$22.2bn were private equity/venture capital products totalling 62 groups and sub-funds.

Monterey Insight Managing director Karine Pacary said the results reflected the Guernsey funds industry as a recognised centre of excellence.

“In the current unsteady climate, Guernsey has more than demonstrated its capability to interest and attract an influx of new assets and this has resulted in a bounce of two digits growth, the strongest growth on the island in a decade,” she said.

“Following on last year‘s upward trend, Guernsey capitalised on its solid relationship with Private Equity vehicles which, with Alternatives funds, remain the principal driver of its fund industry.”

WE ARE GUERNSEY Chief Executive Rupert Pleasant added: “Guernsey’s figures last year were impressive in the face of dealing with Covid-19 for the first time, and the fact there has been a continued rise despite the pandemic escalating even further in the year since is proof of the island’s status as a leading specialist centre in the servicing of alternative assets. Guernsey continues to be a stable jurisdiction in unstable times.”

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

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