The fund industry in Guernsey remains solid and is attracting new promoters despite a small decline in the level of fund assets serviced locally, according to new research.
The 22nd edition of the Guernsey Fund Report, from independent fund research company Monterey Insight, reveals that the fund assets serviced in Guernsey stood at US$385.7bn at the end of June 2016 - a small decline of 2.5% compared to last year, but that the number of serviced schemes increased from 979 to 990. The total number of sub-funds fell to 1,317 from 1,346 over the same period.
In total, more than 100 new schemes (domiciled and non-domiciled) were launched in Guernsey for the year up to the end of June 2016, accounting for US$31.3bn. This included 80 Guernsey schemes and assets of US$27.3bn.
Karine Pacary, Managing Director of Monterey Insight, highlighted a number of positives over the year including new fund promoters choosing Guernsey, despite the uncertainty in some markets created by Brexit.
"Guernsey had a very busy year in terms of mergers and acquisitions of service providers, highlighting the ever-changing fund landscape and the constant dynamism of the market," she said.
"Despite the challenges faced by events such as Brexit and subsequent exchange rate fluctuations, Guernsey managed to attract an increase of business since the previous year. Over 25 new promoters have chosen Guernsey to establish their funds and more than 100 new schemes (domiciled and non-domiciled) were launched on the island."
For fund administration services of both domiciled and non-domiciled funds, Northern Trust remain the largest administrator by total net assets (US$61.9bn), with Ipes (US$44.8bn) and Apax Partners (US$38.0bn) ranked second and third. For funds under custody services of both domiciled and non-domiciled funds, Northern Trust also maintained their lead position with US$18.5bn, Kleinwort Benson (US$8.8bn) kept their second position ahead of BNP Paribas Securities Services with US$6.8bn.
Belinda Burgess, Head of Northern Trust in the Channel Islands, commented: "Guernsey is a top-tier international finance centre with a robust regulatory and compliance regime that attracts investors looking for the specific benefits offered by the jurisdiction. Northern Trust's ranking demonstrates our continued commitment to provide services to new and existing clients across the globe from our Guernsey office."
Among legal advisers, Carey Olsen offered legal advice to 670 funds, followed in second place by Mourant Ozannes with 238 funds. Ogier remain ranked in third spot.
Carey Olsen Partner Ben Morgan said: "A number of Guernsey's big fund managers have raised billion dollar funds in the last few months and in virtually every case have been massively oversubscribed. This bodes well for future fund raisings by the same managers, but what is also exciting about the latest Monterey statistics is the number of managers who have chosen Guernsey as the domicile for their funds for the first time. All in all an extremely positive year for Guernsey."
For auditors, PricewaterhouseCoopers is now auditing 361 funds, just ahead of KPMG with 328 funds, Deloitte takes the third position.
Roland Mills, Partner at PwC Channel Islands and Asset Management Leader in Guernsey, commented: "Guernsey has a thriving investment management industry and is recognised as a global centre of excellence for private equity, providing appropriate structures, a robust regulatory environment and first class professional services. PwC's ranking demonstrates our commitment to our clients and to the funds industry in Guernsey, as we continue to provide top quality advice to local and global organisations in all sectors of the financial services industry and beyond." Among fund management companies, the largest fund promoter for funds serviced in Guernsey is Apax Partners (US$39.0bn), followed by Partners Group and Cinven (with US$22.7bn and US$20.9bn respectively). For domiciled funds, private equity/venture capital funds are still holding the primary position and accounted for US$211bn compared with US$214.9bn in 2015.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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