Three funds domiciled and administered in Guernsey have been making waves in the markets with new listings:
- KSK Emerging India Energy Fund has become the largest
fund to raise money on the Alternative Investment Market
(AIM) of the London Stock Exchange (LSE) this year
- MW TOPS Limited has become the first Euronext listed fund
to dual list on the main market of the LSE
- Phaunos Timber Fund has migrated from AIM to list on the
main market of the LSE
Peter Niven, Chief Executive of Guernsey Finance – the promotional agency for the Island's finance industry, said: "Together these three developments demonstrate that the great flexibility in being able to list Guernsey funds on a variety of different markets is an increasingly popular route with a proven formula for success."
Guernsey funds are showing an ever-growing strength in making successful listings due to a number of factors:
- Listing rules mean that AIM has been particularly popular
for Guernsey companies due to the Island's specialism
in offshore funds and particularly those investing in
alternative assets
- Guernsey is one of the few jurisdictions from where
investment funds wishing to list on the Amsterdam Euronext do
not need to obtain a licence in the Netherlands because the
Dutch authorities (AFM) has ruled that there is already
adequate 'home' supervision
- Changes to the listing rules for the main market of the
LSE, particularly removing the need for quarterly disclosure
of portfolio holdings, has attracted more business which is a
specialism of Guernsey, such as hedge fund and fund of funds
business
- Guernsey funds can take primary or secondary listings on
the local Channel Islands Stock Exchange (CISX)
KSK Emerging India Energy Fund is a Guernsey closed ended investment company focused on the Indian power and energy sector. On 9 June it commenced dealings in its ordinary shares on AIM and on the Channel Islands Stock Exchange (CISX).
Tanmay Das, Non-Executive Director of KSK Emerging India Energy Fund Limited, said: "We are delighted with the market's response to our strategy and the US$200m raised represents the largest fundraising on AIM this year. We are now well placed to launch the fund, deploy this capital quickly and grow our fund management business."
The nominated adviser is Grant Thornton; financial adviser and broker is Liberum Capital Limited; Elysium Fund Management in Guernsey is the CISX sponsor, administrator and company secretary; registrar and CREST agent is Capita Registrars (Guernsey); and the legal advisers on Guernsey law are Ozannes.
MW TOPS Limited is a Guernsey-based multi-strategy hedge fund managed by Marshall Wace LLP. It has been listed on Euronext Amsterdam since December 2006, where it raised €1.5bn, and commenced dealings in existing shares on the main market of the LSE on 18 June 2008.
"We are immensely pleased to list on the LSE. By dual-listing MW TOPS Limited in both Amsterdam and London, we are looking to enhance the company's profile," said Sir Andrew Large, Chairman of MW TOPS.
"Eighteen months ago, when MW TOPS Limited listed in Amsterdam, a primary listing of the company in London was not a possibility. However, following the changes to the UK's listing rules the situation has changed and London, with its growing representation of listed hedge funds and fund of funds, has become a very attractive proposition for hedge funds."
MW TOPS Limited was advised on Guernsey law by local law firm Carey Olsen and has appointed Guernsey-based Anson Fund Managers Limited as its administrator and company secretary and appointed Anson Registrars Limited as its registrar.
Christopher Crowcroft of Anson Registrars commented: "Brokering a workable solution between Euroclear and CREST, as the two electronic settlement systems for the stock exchanges involved, was a great challenge. This is the type of thing we at Anson are good at and enjoy doing – and the solution devised was well accepted by all parties."
Phaunos Timber Fund is a Guernsey closed ended investment company focusing on timberland and timber-related investments. The fund, which has gross assets of some $500m, is managed by FourWinds Capital Management, the Guernsey legal advisers are Ozannes and Guernsey-based Anson Fund Managers Limited is the administrator and company secretary, with Anson Registrars Limited as the registrar.
Its Ordinary Shares were on 11 June migrated from AIM to the main LSE market but also remain listed on the CISX. It is also looking to raise up to $1.6bn by one or more issue of C Shares.
Ian Burns, Executive Director of the Anson Group, said: "The proposal to increase the capitalisation of Phaunos Timber Fund Limited through a C Share issue reflects investors' appetite for alternative asset classes. These asset classes bring their own structural, accounting and technical issues but our experience with Phaunos has been that the Guernsey based professionals selected to support the company have more than demonstrated their ability to deliver the skills and knowledge demanded by such a complex fund."
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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