Guernsey Fund Industry: Stable growth for 2018
New findings from the 24th 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$399.3bn at the end of June 2018, up 0.7% compared to 2017. The number of serviced schemes increased to 1,077 and the total number of sub-funds reached 1,323 (from 1,018 and 1,363 respectively).
For fund administration services across of both domiciled and non-domiciled funds, Northern Trust remain the largest by total net assets of US$65.0bn and by number of sub-funds (188). They are followed by Ipes ranked second with US$47.0bn and Apax Partners in third position with US$39.3bn.
Dave Sauvarin, head of Guernsey at Northern Trust, said: “Northern Trust is delighted to again be named Guernsey’s largest administrator, custodian and transfer agent by total net assets. Through the collaboration of Northern Trust and other professionals on the island, we continue to bring new regulated products and inventive asset servicing solutions to the market, ensuring investors and asset managers around the world continue to recognize Northern Trust’s high level of expertise, integrity and service provided from Guernsey, a leading fund jurisdiction and hub of innovation.”
Northern Trust also maintained their lead position for custody and transfer agency services respectively with US$25.7bn and US$53.6bn
BNP Paribas Securities Services preserved their second position in the custody league table of serviced funds with US$10.6bn ahead of Kleinwort Hambros US$6.6bn.
Among the transfer agents, Ipes maintained its second position with US$47.0bn and Apax Partners rose to third positon with a total of US$39.3bn
The ranking for auditors was unchanged this year, as has been the case for a number of years, PwC maintain their leading position auditing 365 funds, ahead of KPMG with 295 funds and EY in third.
Roland Mills, Partner at PwC Channel Islands and Asset Management Leader in Guernsey commented: “We’re delighted to have retained our leading position as the largest auditor of Guernsey serviced funds. 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.”
This league table is reversed for the auditors ranking by assets: KPMG lead with US$140.3bn followed by PwC in second position with US$116.3bn and Deloitte is in third position.
Neale Jehan, KPMG CI Managing Partner, said “It’s great to retain our No 1 position by value of assets, which we have held for a number of years now. This is due to the continued focus of our local team on such an important sector and continued investment in the Island. We believe Guernsey is currently well positioned within the global fund industry and have great confidence in its future growth. We are seeing increasing interest in the Island from new promoters as an innovative location for management, domiciliation and servicing of funds in the alternative investment market.”
Among legal advisers, the ranking remains the same as last year, Carey Olsen keep their lead offering legal advice to 750 funds, followed in second place by Mourant Ozannes with 173 funds and Ogier in third position.
On the market share ranking of assets, Carey Olsen also take the top spot ahead of Mourant Ozannes.
Ben Morgan, partner and head of Carey Olsen's corporate and finance group in Guernsey, said: "An increase in AUM and the number of funds in Guernsey shows that the funds sector remains extremely buoyant, while the introduction of regimes such as the Guernsey Private Investment Fund, which has been particularly well received since its launch two years ago, and the Guernsey Green Fund, introduced earlier this year as the world's first regulated green fund product, shows that Guernsey continues to innovate in order to stay ahead of the pack jurisdictionally.
"As a firm, Carey Olsen has once again increased its share of the investment funds market and this is a credit to the strength, size and knowledge of our team which ensures that we can deliver the high quality of service which our clients expect of us."
Among fund managers, the largest promoter/initiator of funds serviced in Guernsey is Apax Partners with US$40.4bn. Partners Group climbed to the second position with US$21.1bn followed by Permira US$15.3bn.
95 funds and sub-funds domiciled in Guernsey were launched during the year accounting for US$15.5bn in assets of which 58 sub-funds were private equities with a total net asset of US$12.1bn representing 78.1% in assets of the newly launched product.
For serviced funds, private equities funds are the most popular product accounting for US$259.2bn compared with US$250.3bn in 2017, which represent a 3.6% increase.
Among newly launched serviced funds, private equities accounted for US$15.1bn out of US$19.3bn.
Karine Pacary, Managing Director of Monterey Insight, commented: We are pleased to reveal continuing stability of the Guernsey Fund Industry in the 24th edition of our Monterey Guernsey Fund Report. In fact, Guernsey has managed to attract 21 new promoters to establish their funds in the island and combined with the existing promoters, over 140 new serviced funds and sub funds were launched in the same period, accounting for US$19.3bn.
In a landscape where private equity and venture capital funds hold a prime position, Guernsey continue to be recognised as a reliable and trusted market.
Notes to Editors
Monterey Insight is an independent fund research company that provides comprehensive statistical analysis of the Guernsey, Jersey, Ireland, Luxembourg and UK fund industries: the only complete reference of service providers for all funds serviced in these jurisdictions.
As at 30th June 2018, leading service providers for all funds serviced in Guernsey (i.e. including non-domiciled funds under administration or custody in Guernsey) were as follows:
Source: Monterey Insight, Guernsey Fund Report.