GUERNSEY’S fund servicing industry grew by 45% during the 12 months to 30 June. The latest research from Lipper shows funds reached US$275.4bn (£137.1bn) in net assets.

Last year’s total was US$189.8bn (£102.6bn), a 32% increase on 2005.

‘Yet again this analysis demonstrates Guernsey’s ability to thrive in an evolving financial marketplace. Alternative investments in particular seem to have found a home here,’ said Ed Moisson, director of European fiduciary operations at Lipper.

The 13th annual edition of Lipper’s Guernsey Fund Encyclopaedia provides a definitive reference on the market share of lawyers, auditors, custodians, administrators and fund promoters.

Northern Trust is the largest administrator by total net assets (US$56.8bn) of both domiciled and non-domiciled funds, while Apax Partners is ranked second (US$27.6bn).

Northern Trust also has the largest proportion of assets under custody (US$26.3bn), ahead of Royal Bank of Canada (US$20bn).

Vic Holmes, chief executive of Northern Trust’s Channel Islands operations, said it was a great achievement.

‘We are delighted to be independently recognised as the largest service provider for the administration and custody of investment funds.

‘Our ability to combine flexible solutions for a wide variety of investment classes, with our global technology and processing strength has helped us grow significantly over the past 12 months.’

Carey Olsen now offers legal advice to 794 funds, with Ozannes second with 546.

KPMG is the largest auditor of Guernsey-serviced funds, auditing 435 funds, just ahead of PricewaterhouseCoopers at 430.

Carey Olsen Guernsey corporate partner Graham Hall said: ‘It’s a very telling endorsement of the island’s fund management industry. There are now some 1,600 funds serviced in Guernsey and Carey Olsen has advised on 794.

‘Naturally we’re delighted to have consolidated our position as the adviser of choice.’

KPMG partner Neale Jehan was delighted to see the firm again named number-one auditor.

‘We are extremely proud that we audit nearly half of the fund assets under management in the island,’ he said.

The importance of private equity/venture capital funds in securing Guernsey’s position as a centre for more specialised funds is highlighted with assets now standing at US$86.5bn domiciled in the island. The next-largest asset classes are funds of hedge funds (US$32.4bn) and real estate funds (US$31bn).

n Lipper, a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities, covering 160,000 share classes and over 80,000 funds located in 66 domiciles.