GUERNSEY’S fund sector continues to prosper despite the economic downturn, according to an independent auditor.
Lipper, a Thomson Reuter company, publishes the annual Guernsey Fund Encyclopaedia, which offers an insight into the island’s market share of global investments.
The latest edition has revealed that the fund servicing industry has grown by 20% to reach US$331.4bn in net assets in the last year.
Last year’s total of US$275.4bn was an increase of 45% on the previous 12 months. Lipper’s Ed Moisson said the island continued to prosper despite the events of the past year.
‘Almost 2,000 funds and sub funds are now serviced on the island. Guernsey’s reputation as a home for more specialist investments, such as private equity and funds of hedge funds, plays a significant part in its success.’
For fund administration services of both domiciled and non-domiciled funds, Northern Trust is the largest administrator with total net assets of US$61.5bn.
International Private Equity Services is second with US$34.4bn and Apax Partners is third with US$34.2bn.
Northern Trust also has the largest proportion of assets under custody, US$35.8bn, and Channel Islands CEO Vic Holmes said the recognition reflected the firm’s ability to meet the dynamic asset-servicing needs of its international fund manager client base.
‘Our specialist teams in Guernsey draw on our long-standing local expertise, backed by Northern Trust’s global platform, to innovate and develop servicing solutions across a broad spectrum of asset classes.
‘We continue to evolve our services to meet contemporary fund needs and are pleased to be able to report that the Guernsey funds industry as a whole continues to demonstrate a forward-thinking vision and a commitment to upholding its world-class financial centre status.’
Among professional firms, PricewaterhouseCoopers is now the largest auditor of Guernsey-serviced funds with 526, narrowly ahead of KPMG with 494.
KPMG partner Neale Jehan said the figures demonstrated the robustness of Guernsey’s fund industry in what are challenging times for the global economy.
‘KPMG is obviously delighted to be the auditor to half of the fund assets now domiciled in Guernsey, which is a reflection of the continuing investment we are making in our funds team.’
Private equity/venture capital funds grew by 32% to US$114bn domiciled in the island and the next-largest asset classes are funds of hedge funds, with US$34.8bn, and real-estate funds with US$30.3bn.
PWC’s John Roche was delighted with the continued strong growth in the number of fund clients of the practice in Guernsey.
‘It puts us in a very strong position working with quality clients in the alternative investment fund arena, particularly private equity, real estate and funds of funds.’
Law firm Carey Olsen offers legal advice for 929 funds in Guernsey, with Ozannes following in second place with 620.
Carey Olsen’s Graham Hall said it had managed to increase it market share steadily each year and was the leader by a significant margin.
‘The results are a reflection of the commitment of our funds team, who have shown their ability to meet critical deadlines and work across international time zones,’ he said.
Article posted on 20th October, 2008 - 2.30pm
2 Article Comments
Based on events prior to Landsbanki this report shows eveything is hunky dory. However post Landbanski and, if Obama is elected, it will be interesting if the figures are as good in 12 months time.
I’m no expert but it is my view that this is the start of a decline for Guernsey.
Report abuse
Aden
I rekon it will be a breath of fresh air to start living in the real world anyway.
Humanity has become to greedy, selfish and expectant.
The speed in which things are expected to happen without thought or onsequence to others is a sad place to be in.
A lot of good will result I think.
It will definately shock some, though, for the better in the long term.
Report abuse