80 new groups and sub-funds were launched in Guernsey in 2023, accounting for an increase in fund assets of US$33.4bn, effectively doubling the growth of 2022 according to findings from independent fund research company Monterey Insight’s Guernsey Fund Report.
The 29th annual report found that fund assets serviced in Guernsey stood at US$517.5bn (£407.7bn), at the end of June 2023.
The number of serviced schemes stood at 1,343 and the total number of sub-funds reached 1,564, an increase from 2022 of 1,280 and 1,520 respectively.
Green funds saw a 2.1% increase in asset value, bringing their total assets to US$7.2 billion. Additionally, US$6.9 billion has been invested in sustainable/ESG funds across the sector, adding to Guernsey’s growing sustainable finance proposition.
As was the case in the previous years, private equity and venture capital funds remain the most popular asset classes standing at US$387.9bn, followed by alternative investment with US$61.2bn.
The same trend applies for Guernsey-domiciled funds; private equity and venture capital funds are once again the most popular by AUM and account for US$311.7bn, followed by alternative investment funds with US$50.7bn.
“Despite the significant range of political and economic uncertainty in 2023, Guernsey has shown resilience compared to other markets that have been hit harder by the current climate,” said Karine Pacary, Managing Director of Monterey Insight.
“Keeping the same trend as last year, over 20 promoters chose Guernsey to set up their funds, and private equity funds continue to be a strong performer and contributor to the Guernsey fund industry.”
Dave Sauvarin, head of Northern Trust, Channel Islands, added: “This report showcases Guernsey’s appeal as a top-tier fund domicile as it continues to attract and retain leading fund managers, especially in the private equity and private debt sectors.
“They are drawn by a combination of Guernsey’s longstanding experience teamed with a pragmatic approach to fund servicing. These attributes are key to supporting managers to meet and respond to the challenges of the rapidly evolving global marketplace.”
The report also confirmed that law firm Carey Olsen has retained its place as leading legal adviser to Guernsey's investment funds sector. The report shows that the firm increased its market share to over 81% of the entire Guernsey-domiciled fund market by assets under management (AUM).
As of 30 June 2023, Carey Olsen Guernsey advises 977 funds comprising over US$ 380.5 billion of assets, up from 809 previously. Of those funds, 848 are Guernsey-domiciled schemes.
Partner and head of Guernsey's corporate, finance and funds group in Guernsey, Ben Morgan, said: "We are pleased that Carey Olsen continues to be the leading legal adviser to Guernsey's investment funds sector, increasing its market share by AUM and number of funds.
"The vastly dominant position of Carey Olsen in Guernsey, a leading funds domicile in a highly competitive market, is a credit to our team's calibre, expertise and the high-quality relationships we hold with clients, both large and small."
