Guernsey Finance

Guernsey is becoming home to an increasing number of ‘green funds’, according to Andrew Boyce (pictured), Partner at Carey Olsen.

He believes that Guernsey has adapted to the global economic crisis by finding new markets, such as funds with a ‘green’ or ‘cleantech’ focus.

“This ability to seek out new markets means Guernsey is one of the first offshore jurisdictions to see a real evolution in the concept of ethical investing,” said Boyce.

“The idea of investing ethically is nothing new but now a growing number of investors are seeking more from their investments, making the impact on the social and natural environment a priority and key decision-making factor in placing those investments.

“There are an increasing number of investors who want to do more than simply not invest in ethically questionable funds. They are now taking a positive approach and the emerging new trend in funds points towards socially responsible investment (SRI) in funds with a ‘green’ or ‘cleantech’ focus or element.”

He says that Guernsey’s sterling reputation as a financial and in particular a funds centre is proving an attraction for green funds.
 
“Fund promoters and investors have confidence that we have the experience and they know that Guernsey has the solid infrastructure, flexible laws and regulation and tax efficiency to get it right. Guernsey ticks all those boxes for traditional funds and promoters are therefore confident in our ability to host green funds,” added Boyce.

“The global focus as well as the very breadth and scope of the asset class makes it more unlikely that this area will suffer a bubble (with the inevitable ‘bust’) effect and provides good reason to think that Guernsey will continue to be at the forefront of establishing these funds. Fund managers feel secure here because they can access flexible and effective structures and highly professional advisors. Investors are happy with Guernsey domiciled funds because of the existing international level of regulation applied in a pragmatic and flexible manner by a knowledgeable regulator.”

Boyce provided the example that his firm, Carey Olsen, was instructed to advise on the establishment of a multi jurisdiction sustainable forestry fund for MSS Capital and Oxigen. The Guernsey-based fund is an Incorporated Cell Company with three initial incorporated cells of varying terms – 15 years, five years and one year with the aim of £100m in each cell.

Release Ends

Notes to Editors:
• Read the full article by Andrew Boyce through this link: Growing ‘green funds’ in Guernsey
• Figures show that Guernsey’s funds industry recorded positive growth during the second half of last year to take the total value of business to £184bn at the end of 2009.

Attachment	Size
Green funds growing in Guernsey1.pdf	170.8 KB