Senior figures from within Guernsey's fund industry have
welcomed the continued increase in the value of funds under
management and administration in the island.
Statistics released at the end of last month by the Guernsey
Financial Services Commission (GFSC) show that, at the end of June
2016, the net asset value of all funds under management and
administration in Guernsey stood at £247.1 billion – an
increase of £9.1 billion (3.8%) since the end of March. For
the year ending 30 June 2016, the total value of funds in Guernsey
has increased by £27.2 billion (12.3%).
Speaking to the Guernsey Press, Andrew Whittaker, Chairman of
the Guernsey Investment Fund Association and Managing Director of
Ipes, said the
stats were very good news.
"We have done very well getting some very large fund
managers based in Guernsey and in a challenging environment where
people are looking to go to different jurisdictions, their launches
send a message to the market that you have market-leading funds
domiciled in Guernsey."
Mr Whittaker explained that some billion-pound fund launches
from the island have boosted the figures and overcome a loss of a
number of smaller funds over the past 18 months.
"They make sure that Guernsey remains a high-profile
jurisdiction for private equity," said Mr Whittaker.
Tom Amy, Head of Funds at Elian in Guernsey, also welcomed the
"The positive performance of Guernsey's fund industry
is consistent with our own observations regarding business activity
from new and existing clients. The fantastic feature of this growth
is that the underlying clients are jurisdictionally diverse and
opportunities are influencing all key asset classes. Recent
launches and enquiries span private equity, real estate, debt
infrastructure and also some niche alternative strategies. This
momentum generates a genuine reason for optimism as we look towards
2017 and beyond.
Paul Wilkes, Group Partner and Head of the Guernsey commercial
department at Collas Crill, said: "These statistics show the
continued strength of the fund sector through the first half of
this year despite the uncertainty of Brexit and the build-up to the
US presidential election.
"At Collas Crill we have seen this continue into the third
quarter with a number of exciting projects, including continued
investment in the UK property sector, venture capital funds and,
with open-ended funds, an increasing trend to choose Guernsey over
traditional hedge fund jurisdictions. All in all, promising signs
in advance of the big news we have been waiting for on the opening
up of Europe with the AIFMD passport."
Byron Rees, Partner at Ogier, said that some large fund launches
and the birth of the manager-led product had all played their part
in the healthy figures recorded over the past year. He said that
all indications were that growth would continue.
"We have seen increases across a range of activity,
including closed-ended and open-ended funds managed here, and
non-Guernsey schemes," he said.
"We're looking at a set of healthy figures reflecting
confidence in the island, and that's what we'd expect to
see after the positive ESMA passporting verdict."
In July, Guernsey was recommended for a 'third country'
passport under the Alternative Investment Fund Managers Directive
(AIFMD) by the European Securities and Markets Authority (ESMA).
The independent EU regulatory authority had assessed Guernsey,
alongside 11 other non-EU jurisdictions, as part of its non-EU
AIFMD passport reviews. In its final assessment, ESMA has concluded
that 'there are no significant obstacles regarding investor
protection, competition, market disruption and the monitoring of
systemic risk impeding the application of the AIFMD passport to
Guernsey was one of only five jurisdictions to receive an
'unqualified assessment. ESMA's advice is now being
considered for approval by the European Commission, Parliament and
Council. Once approved they will activate the relevant provision in
the AIFMD to extend the passport through a Delegated Act.
Observing a recent discussion between the children of a successful entrepreneur, I was reminded once again of the potential impact of family members being provided with differing information about the family enterprise.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).