Guernsey Fund Industry Leaps by Double Digit Growth
New findings from the 27th 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.
The 27th annual Monterey Insight Guernsey Fund Report highlights that fund assets serviced in Guernsey increased to US$532.7bn at the end of June 2021, up 24.4% compared to 2020. The number of serviced schemes stood at 1,222 and the total number of sub-funds reached 1,443 (an increase from last year with 1,135 and 1,372 respectively in 2020).
Private Equity/Venture Capital funds remain the most popular product of serviced funds topping asset allocations with US$388.4bn, followed by Alternative Investment with US$60.8bn. The same trend applies for Guernsey domiciled funds, as was the case in the previous years, Private Equity/Venture Capital fund are once again the most popular by AUM and account for US$307.2bn, followed in second position by Alternative Investment funds with US$50.2bn. Of Guernsey domiciled schemes, Alternative Investment funds enjoy the largest increase of assets by 54% and are followed by Private Equity/Venture Capital funds with 31% increase of assets.
Turning to the new business, over 90 new groups and sub-funds serviced in Guernsey were launched during the year. New business accounted for US$24.4bn of assets, of which US$22.2bn were private equity/venture capital products totalling 62 groups and sub-funds. Over 90 serviced funds and sub-funds migrated to the island adding US$10.2bn of assets. This brings the total of new business to US$34.6bn in over 180 funds and sub-funds.
Among fund managers, Apax Partners retain their top position of the largest promoter/initiator of serviced funds with US$53.0bn. Permira spring a surprise and climb to the second spot with US$43.5bn followed by Cinven with US$29.9bn in third position.
Northern Trust, indisputably remain in top position as it has been for several years. They maintain the top position for all three rankings of fund administration, custody and transfer agency. Across both domiciled and non-domiciled funds, Northern Trust lead as the largest administrator by total net assets with US$108.0bn. They are followed by Aztec Group maintaining their second position with US$76.0bn of assets, and in third position are Apex Group with US$69.4bn.
Among custodians, the ranking of serviced funds remain the same as last year: Northern Trust are first with US$43.7bn. BNP Paribas Securities Services follow in second position with US$10.8bn, ahead of Butterfield Bank in third place with US$10.1bn.
For the top positions among transfer agents, Northern Trust preserve their lead position with US$99.5bn. However, the surprise this year is created by Apex Group nabbing second position with US$69.4bn ahead of Aztec Group in third position with US$65.1bn.
Dave Sauvarin, head of Northern Trust, Channel Islands, said:
“ We are delighted to achieve the significant milestone of being the first administrator in Guernsey to exceed US$100bn of assets under administration, as recognised by Monterey Insight. In addition to our distinction as Guernsey’s largest fund administrator, we have retained our rankings as Guernsey’s largest custodian and transfer agent. These triple recognitions fittingly coincide with our 50th anniversary in the Island in 2022, reflecting our strength, stability and client-first servicing culture.
Monterey’s latest report is a further validation of Guernsey’s continued appeal as a fund domicile, combining speed-to-market with a highly evolved and stable servicing infrastructure. We are pleased to be at the centre of this growth as we have welcomed both new promoters to the jurisdiction as well as supporting new launches from existing clients across the spectrum of asset classes.”
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 439 funds and sub-funds, ahead of KPMG with 259 funds and sub-funds. The positions for third and fourth places are swapped again this year with EY taking third place ahead of Deloitte. PwC are also in the lead position in the ranking by assets with US$174.1bn, followed in second place by KPMG with US$132.8bn and Deloitte in third position.
Evelyn Brady, Managing Partner at PwC Guernsey, commented:
“I am delighted that we have retained our market-leading position yet again as the leading auditor in ranking by both the number of Guernsey serviced funds as well as by assets under management. Despite the challenges of COVID-19, the Island has demonstrated its resilience, strength and adaptability and continues to be a well-recognised, global centre of excellence for investment funds, providing a robust regulatory environment, flexible structures and first-class professional services. Here at PwC, we recognise that our people are our biggest strength and we can only produce our best and highest quality work when we build a workforce made up of talented people with a breadth of experience who can bring innovation and fresh perspectives when it comes to client delivery. We are so proud of their unwavering commitment across the Channel Islands to growing the local funds industry even during such challenging times. We are confident that Guernsey will continue to serve an important role in the alternative funds industry, and will maintain its focus on providing top quality advice to both local and global organisations in all sectors of the financial services industry.”
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 847 funds and US$382.4bn. In the ranking table of funds, they are followed in second place by Mourant with 165 funds and Ogier in third position.
Ben Morgan, partner and head of Carey Olsen's corporate and finance group in Guernsey, said:
"Guernsey's fund industry has enjoyed an extremely buoyant period as demonstrated by the 24.4% rise in AUM and notable uptick in the number of funds serviced in the island. Given the challenging economic circumstances it is incredibly impressive that Guernsey's funds sector has shown such resilience, stability and growth. It underscores Guernsey's position as a centre of excellence for the domiciliation of investment funds for many of the largest fund managers in the world. The considerable dominance of Carey Olsen is a credit to our team's expertise and experience and reflects the significant commitment from our clients to domicile their funds in Guernsey."
Karine Pacary, Managing Director of Monterey Insight, commented:
“We are delighted to reveal the new results of the Guernsey Fund Industry in our 27th edition of our Monterey Guernsey Fund Report. In the current unsteady climate, Guernsey has more than demonstrated its capability to interest and attract an influx of new assets and this has resulted in a bounce of two digits growth, the strongest growth on the island in a decade. Following on last year‘s upward trend, Guernsey capitalised on its solid relationship with Private Equity vehicles which, with Alternatives funds, remain the principal driver of its fund industry. It is always satisfying to report such good results which again reflects the Guernsey fund industry as a recognised centre of excellence for investment funds.
For more information, please contact:
Karine Pacary, Managing Director
Monterey Insight, Tel: +44 (0)20 3855 6472 +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 2021, 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 2021.