Guernsey Fund Industry Performs Well Despite International Challenges
New findings from the 28th 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 28th annual Monterey Insight Guernsey Fund Report highlights that fund assets serviced in Guernsey stood at US$517.8bn at the end of June 2022, down 2.8% in US Dollar or an increase of 10.6% in Pound Sterling compared to 2021. The number of serviced schemes stood at 1,280 and the total number of sub-funds reached 1,520 (an increase from last year with 1,222 and 1,443 respectively in 2021).
As was the case in the previous years, Private Equity/Venture Capital funds remain the most popular product of serviced funds topping asset allocations with US$379.8bn, followed by Alternative Investment with US$63.4bn.
The same trend applies for Guernsey domiciled funds, Private Equity/Venture Capital funds are once again the most popular by AUM and account for US$291.7bn, followed in second position by Alternative Investment funds with US$50.3bn.
Turning to the new business, close to 100 new groups and sub-funds serviced in Guernsey were launched during the year. New business accounted for US$17.0bn of assets, of which US$14.9bn (circa 60 groups and sub-funds) were private equity/venture capital products.
Over 60 serviced funds and sub-funds migrated to the island adding US$6.5bn of assets.
This brings the total of new business (newly launched and newly serviced) to US$23.5bn with over 160 funds and sub-funds.
The top two asset managers maintained their ranking: Apax Partners retain their first position as the largest promoter/initiator of serviced funds with US$54.2bn and Permira keep their second spot with US$34.3bn. HgCapital spring a surprise and take the third spot with US$29.9bn closely followed by Cinven with US$29.4bn in fourth position.
Northern Trust, definitively remain in top position as 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$100.1bn. They are followed by Aztec Group maintaining their second position with US$79.9bn of assets, and in third position are Apex Group with US$59.3bn.
Among custodians, the ranking of serviced funds remains the same as last year: Northern Trust are first with US$44.5bn; BNP Paribas follow in second position with US$10.1bn, ahead of Butterfield Bank in third place with US$9.7bn.
For the top positions among transfer agents, Northern Trust preserve their lead position with US$92.5bn; Aztec Group regain second position this year with US$69.1bn ahead of Apex Group in third position with US$58.7bn.
Dave Sauvarin, head of Northern Trust, Channel Islands, said:
“Following an exceptionally strong performance in 2021, the Guernsey fund industry has demonstrated its resilience in 2022. In these times of multiple global macro events and economic headwinds, Guernsey offers stability and experience through its highly-established financial services infrastructure. This is especially relevant to Private Equity / Venture Capital funds which have once again topped the island’s asset allocations. Guernsey is also at the forefront of responding to the growing investor appetite for sustainability-focused products, as demonstrated by the launch of the Natural Capital Fund regime in September 2022, which complements the Guernsey Green Fund designation.
Northern Trust is delighted to be a part of the Guernsey fund industry and its continued success story as we have further consolidated our leading position as a US$100 billion-plus administrator in addition to our distinction as Guernsey’s largest custodian and transfer agent.”
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 aubnpditing 454 funds and sub-funds, ahead of KPMG with 261 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$164.8bn, followed in second place by KPMG with US$116.6bn and Deloitte in third position.
Evelyn Brady, Managing Partner at PwC Guernsey, commented:
"It's great news that we have retained our market-leading position in Guernsey yet again by both number of funds and assets under management. 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 we're so proud of them for the part they continue to play in helping us consolidate these leading positions. We are confident that Guernsey, with its robust regulatory environment, appropriate structures and first-class professional services, will continue to play a really important role in providing top quality advice to both local and global organisations across all sectors of the financial services industry."
As in previous years, Carey Olsen remain the largest legal adviser by both number of funds advised and by assets with respectively 960 funds and US$368.0bn. In the ranking table of funds, they are followed in second place by Mourant with 162 funds and Ogier in third position.
Ben Morgan, partner and head of Carey Olsen's corporate and finance group in Guernsey, said:
"Guernsey has continued to be extremely buoyant. Given the challenging economic circumstances it is 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 all of 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 28th edition of our Monterey Guernsey Fund Report 2022.
This year again Guernsey has capitalised on the positive results showing resilience to the many challenges of the current period such as the war in Ukraine, the energy crisis and high inflation. In this context, Guernsey managed to attract circa 20 new promoters/initiators who came and established their funds on the Island and 4 new administrators are now newly referenced in the 2022 Monterey report.
On the topic of ESG, Guernsey positioned itself strongly with Green tailored funds which represented US$7.0bn as at June 2022. In addition to the regulated Green Funds, an additional US$7.0bn of assets have been invested in sustainable/ESG funds. “
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 2022, 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 2022.