Guernsey Fund Industry Continues to Flourish
New findings from the 26th edition of Monterey Insight’s Guernsey Fund Report, the independent fund research company, reveal the market shares of all service providers in Guernsey’s fund industry.
Fund assets serviced in Guernsey increased to US$428.4bn at the end of June 2020, up 4.0% compared to 2019. The number of serviced schemes stood at 1,135 and the total number of sub-funds reached 1,372 (an increase from last year with 1,065 and 1,289 respectively in 2019).
The influx of new business has seen circa 100 new Guernsey domiciled groups launched during the year, accounting for US$16.4bn of assets.
Overall, all Guernsey domiciled funds and new sub-funds launched during the year demonstrate once again that private equity vehicles remain the principal driver of its fund industry with assets accounting for US$13.7bn.
For domiciled and non-domiciled funds, private equity funds account for US$305.8bn followed in second position by alternative investment funds with US$40.6bn.
Among fund managers, the ranking remains the same as last year. The largest promoter/initiator of serviced funds is Apax Partners with US$38.4bn. Cinven maintain their second position with US$26.6bn followed by Permira with US$26.1bn.
Turning to other service providers, this year again Northern Trust maintain their lead position for all three rankings of fund administration, custody and transfer agent.
Across both domiciled and non-domiciled funds and as has been the case for several years, Northern Trust remain the largest administrator by total net assets of US$67.9bn. Aztec Group maintain their second position with US$62.9bn of assets but with an increase of US$12.2bn in assets compared to last year. They are followed by Apex Fund Services ranking third with US$54.1bn. The latter, Apex Fund Services, had a surprise entry in the top position as the largest administrator by number of sub-funds (194).
Among custodians, Northern Trust also maintain their lead position with US$33.2bn followed by BNP Paribas Securities Services who, as last year, preserve their second position in the custody table of serviced funds with US$8.9bn, ahead of Butterfield Bank who snap the third spot with US$7.0bn.
For the top positions among transfer agents, Northern Trust keep their lead position with US$60.5bn. Aztec Group had a productive year and continue its ascension to take the second place with a total of US$55.0bn, just ahead of Apex Fund Services with US$54.1bn.
Dave Sauvarin, country head, Channel Islands, Northern Trust, said:
“The Guernsey Fund Industry has demonstrated its resiliency and stability throughout the challenges of COVID-19, supporting leading fund managers to launch, grow and evolve their assets under management. Guernsey combines a stable funds infrastructure with innovative, swift-to-market solutions for alternative investment funds aligned to evolving investor needs, such as the focus on sustainable investing. As Guernsey’s largest fund administrator, custodian and transfer agent, Northern Trust is pleased to be at the centre of this growth through our solutions-led approach for our clients across the globe. In 2021, the ability to deliver a diverse suite of asset servicing solutions integrated with enhanced services such as secured credit and integrated trading solutions will be increasingly important to support our clients to navigate the challenges ahead.”
The ranking for auditors was unchanged this year for the top two, as has been the case for a number of years. PwC maintain their leading position auditing 416 funds and sub-funds, ahead of KPMG with 283 funds and sub-funds. However, Deloitte spring the surprise and take the third position this year.
For the first time, PwC take the lead position in the ranking by assets with US$130.2bn, followed in second place by KPMG with US$127.5bn and Deloitte in third position.
Tony Corbin, Director at PwC Channel Islands, who leads on Clients and Markets strategy in Guernsey, commented:
“It is a brilliant achievement that we have retained our leading position yet again as the largest auditor of Guernsey serviced funds, as well as taking the top position in the ranking by assets. In these particularly testing times, Guernsey has demonstrated its resilience, capabilities and adaptability and continues to have a thriving investment management industry, being well-recognised as a global centre of excellence for investment funds, providing appropriate structures, a robust regulatory environment and first-class professional services. These latest accolades reflect our teams’ commitment both in Guernsey and across the Channel Islands to both our clients and to the local funds industry and I thank them for the part they continue to play in helping us consolidate these leading positions. In tough times as well as good, we maintain our focus on providing top quality advice to local and global organisations in all sectors of the financial services industry and we have considerable confidence in the future, whatever challenges and opportunities lie ahead.”
As in previous years, no surprise for the legal advisers ranking, Carey Olsen remain the largest legal advisers by both number of funds advised and by assets with respectively 869 funds and US$313.9bn. In the table ranking of funds, they are followed in second place by Mourant with 157 funds and Ogier in third position.
Ben Morgan, partner and head of Carey Olsen's corporate and finance group in Guernsey, said:
"These are extremely positive results for Guernsey, with the year-on-year rise in AUM and funds serviced in the island showing just how compelling a proposition Guernsey continues to be for fund managers - especially in private equity where Guernsey's expertise is second-to-none.
"Carey Olsen has continued to retain its position as the leading adviser to funds domiciled and administered in the island, and we are delighted to have advised over two-thirds of the funds added to the report for the first time. This is a strong reflection of the experience, expertise and commitment of our investment funds team."
Karine Pacary, Managing Director of Monterey Insight, commented:
“We are pleased to reveal the new results of the Guernsey Fund Industry in our 26th edition of our Monterey Guernsey Fund Report.
Guernsey continued to deliver strong returns despite the uncertainty at the beginning of the year around Covid19. In this difficult and volatile time, Guernsey managed to strengthen last year’s good results and attract new business.
This year’s result demonstrates again that the Guernsey Fund industry is a centre of excellence for private equity and alternative funds supported by the trust and professionalism of its service providers and the quality of its regulatory body.”
For more information, please contact:
Karine Pacary, Managing Director
Monterey Insight, Tel. +44 (0)845 625 3863
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 2020, 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 June 2020.