Guernsey Chosen As Domicile Of Record-Breaking Hedge Fund

by Jason Gorringe, Tax-News.com, London

08 January 2007

Guernsey's growing reputation as a jurisdiction of choice in which to conduct funds business has been further boosted by the news that the largest publicly-traded closed-ended European hedge fund, MW TOPS Limited, is domiciled on the Island.

MW TOPS Limited’s issue of Euro Shares, Sterling Shares and US$ Shares raised EUR1.5billion (US$2 billion).

“The fact that the decision was taken in the first place to domicile this hedge fund in Guernsey speaks volumes for the excellent reputation we have built up as a jurisdiction in which to conduct fund business,” observed Peter Niven, Chief Executive of GuernseyFinance, the promotional agency for the Island’s finance industry.

“Its success illustrates the potential benefits of domiciling funds in Guernsey and in doing so further enhances the Island’s reputation," he added.

The shares are listed and traded on Euronext, Amsterdam, in line with the Dutch financial authority’s (Dutch AFM) recognition of Guernsey as a financial centre. Guernsey is one of only a very few jurisdictions from where investment funds wishing to list on the Euronext do not need to obtain a licence in the Netherlands because the Dutch AFM has ruled that there is already adequate ‘home’ supervision in Guernsey.

“MW TOPS Limited’s domiciling in Guernsey is founded on this recognition by the Dutch AFM, which is an important element in making Guernsey a particularly effective jurisdiction for hedge funds looking to list their shares on the Euronext exchange,” concluded Mr Niven.

MW TOPS Limited is managed by Marshall Wace LLP, a top-ten British hedge fund manager which had assets under management of EUR5.9 billion prior to the launch of MW TOPS Limited.

MW TOPS Limited was advised as to Guernsey law by local law firm Carey Olsen and has appointed Anson Fund Managers Limited as its Administrator and Company Secretary and appointed Anson Registrars Limited as its Registrar.

“We were delighted to be appointed the Administrator, Company Secretary and Registrar to the largest publicly-traded closed-ended European hedge fund,” commented John Le Prevost, Chief Executive Officer of Anson Group.

“The Anson Group is developing an enviable reputation through its ability to administer complex listed funds in a highly professional, timely and efficient manner. Indeed, this appointment is further evidence that Guernsey’s service providers have the capability to make the Island a great ‘one-stop shop’ for innovative funds," Le Prevost added.

Funds under management and administration in Guernsey reached a record high of over GBP120 billion (US$233 billion) at the end of September 2006 – a rise of 31% year on year.

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