Guernsey Fund Industry Suffers First Fall in Five Years
New findings from the 21st edition of Monterey Insight’s Guernsey Fund Report, the independent fund research company, reveal the market shares of all service providers in Guernsey’s funds industry.
Fund assets serviced in Guernsey stood at US$395.7bn at the end of June 2015, a decline of 7.1% compared to last year. The number of serviced schemes declined to 979 and the total number of sub-funds fell to 1,346 (from 1,026 and 1,442 respectively).
For fund administration services of both domiciled and non-domiciled funds, Northern Trust remain the largest administrator by total net assets (US$63.8bn), with Ipes (US$45.5bn) and Apax Partners (US$31.7bn) 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$20.5bn, Kleinwort Benson (US$9.4bn) kept their second position ahead of BNP Paribas Securities Services with US$6.3bn.
Among legal advisers, Carey Olsen offered legal advice to 724 funds, followed in second place by Mourant Ozannes with 264 funds. Ogier remain ranked in third spot.
For auditors, PricewaterhouseCoopers is now auditing 350 funds, just ahead of KPMG with 343 funds.
Among fund management companies, the largest fund promoter of Guernsey domiciled schemes is Apax Partners (US$32.4bn), followed by Partners Group and EQT Partners (with US$23.5bn and US$18.5bn respectively).
Private equity/venture capital funds accounted for 63.0% of assets domiciled on the Island with US$214.9bn, compared to US$232.7bn in 2014. This represents a total of 408 sub funds (37%) out of a total of 1,095 Guernsey domiciled funds.
“The 2015 Monterey Guernsey Fund report shows a fall in total assets for the first time in five years. Despite these market conditions, Guernsey seems to be able to continue to attract business: 106 new sub funds were launched during the year (domiciled and non-domiciled), 71 new serviced funds were launched (including 48 new Guernsey schemes) and over 15 new promoters have chosen Guernsey to establish their funds.We are confident that the positive flows at the start of the year combined with regulatory announcements will reinforce a robust recovery.” says Karine Pacary, Managing Director of Monterey Insight.
Ben Morgan, a partner in Carey Olsen's corporate practice, said: "Monterey Insight remains the most comprehensive and valuable assessment of how Guernsey's fund industry is growing and changing. As Guernsey's dominant investment funds team, our partners play a very active role in attracting new business to the island, and these results are a welcome reflection of their continuing hard work and commitment."
He added: "What the latest Monterey Insight figures do not capture is the extraordinary volume of new funds being launched now. Over the next few months, tens of billions of dollars will be raised by Guernsey funds by the major private equity players, and their efforts are on track to eclipse anything seen before."
Paul Cutts, Country Head, Northern Trust, Guernsey. Northern Trust is delighted to once again maintain our place as Guernsey’s largest administrator and custodian by total net assets. This reflects both increased repeat business from existing clients as well as our support for new clients to bring innovative fund structures to Guernsey. Guernsey’s continuing commitment to embrace the evolving regulatory landscape will support its continued attractiveness to investors looking for the specific benefits offered by the jurisdiction.
Roland Mills, Director at PwC Channel Islands and Asset Management Leader in Guernsey commented: “We’re delighted to have regained our leading position as the largest auditor of Guernsey serviced funds. Guernsey has a thriving investment management industry and is recognised as a European 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.”