Guernsey Powers Ahead In Alternative Investments

by Amanda Banks, Tax-News.com, London

14 November 2001

The recently-published seventh edition of Fitzrovia’s Guernsey Fund Encyclopedia reports that Guernsey's position as a centre for specialised investment funds has grown in the past year, with the number of alternative investment funds increasing from 12 to 30, with total assets of $788m. The overall number of funds serviced in Guernsey also increased, with funds of funds accounting for the most growth both in number and assets. Guernsey International Fund Managers is the largest fund administrator with $8.7bn in assets, while Barings is the largest custodian with assets of $6.9bn.

The total number of funds being serviced in Guernsey grew by 14% last year, although total fund assets decreased slightly during the year.

Mark Huntley, head of business development at Barings Financial Services Group which includes both GIFM and Barings (Guernsey), told This Is Guernsey that alternative investment had been particularly strong in the past few months: ‘Alternative investment funds are expected to be an important component of the investment strategies for pension and institutional investment pools.’ He said that there was an increasing trend of hedge funds and funds of funds being administered, complementing more conventionally long-only equity and bond funds.

Advocate Peter Harwood, senior partner at Ozannes, told the newspaper: ‘Once again, Ozannes has played a leading role in a very active period for the offshore fund sector. Guernsey has faced, and continues to face, significant competition from other jurisdictions. The ability of the island to compete depends upon the continued strength and depth of the professional infrastructure within the island, and the manner of regulation by the Guernsey Financial Services Commission.’

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