Strength of recovery in Guernsey’s funds sector reinforced

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 USD388.4 billion, followed by Alternative Investment with USD60.8 billion.

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 USD307.2 billion, followed in second position by Alternative Investment funds at USD50.2 billion.

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 USD24.4 billion of assets, of which USD22.2 billion 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.”

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