A year of ‘steady growth’ for fund assets industry

The annual Guernsey report from independent fund research company Monterey Insight indicated that fund assets serviced in the island increased by 3.2% in US dollars and 3.5% in sterling.

Karine Pacary, managing director of Monterey Insight, called it a year of ‘steady growth’.

The new launches reflected the dominance of private equity and venture capital in the sector locally, with a value of more than $400bn. The next-strongest sector in the island is alternative investment funds at $61.3m., and the picture is similar for Guernsey-domiciled funds.

Green funds saw a 6% increase in asset value, bringing their total assets to $7.6bn, while the local industry also has $6.7bn invested in sustainable and ESG funds.

Monterey Insight ranked the industry professionals in the sector for their market share, with a significant change in administrator rankings for all funds, with Aztec Group overtaking long-term market leader Northern Trust, with $107.3bn to $105.7 in total net assets, while Apax Partners ($61.2bn) has moved into third place, above Apex Group ($58.6bn).

‘Achieving the number one ranking in the Monterey Guernsey Report is a proud moment for Aztec,’ said Matt Horton, head of private equity at Aztec.

‘Since we opened our doors in Guernsey 18 years ago, our success has been driven by our commitment to delivering exceptional service and innovative solutions tailored to our clients’ needs.

‘Securing this market-leading position is a testament to this dedication and the hard work of our incredible team, as well as the trust and support of our clients and partners. We are immensely proud to support Guernsey’s thriving fund industry and contribute to its ongoing success.’

Northern Trust continues to lead the rankings for Guernsey-domiciled funds as administrator, transfer agent, and custodian, where it is nearly four times the next-largest competitor, followed by BNP Paribas, Butterfield Bank, and JP Morgan Custody Services.

‘Our long-standing experience in the Guernsey funds sector across the spectrum of traditional and alternative funds is illustrated by being ranked as the leading administrator for Guernsey-domiciled funds,’ said Dave Sauvarin, head of Northern Trust, Channel Islands.

‘Our comprehensive range of solutions across fund administration, transfer agency, banking and custody is enabling us to support the strategic growth plans of our diverse fund manager client base, which includes some of the world’s most successful and innovative investment managers as well as boutique managers.’

Among asset managers Apax Partners ($67.2bn) leads the rankings for promoters and initiators of serviced funds, followed by Cinven, Permira and Hg Capital.

The ranking of funds and sub-funds for auditors remains unchanged this year for the top two positions, as has been the case for several years. PwC is the market leader, ahead of KPMG, with EY moving up to third, and in asset rankings, PwC again leads the field, with KPMG second and Deloitte third.

‘This latest accolade reflects our teams’ commitment both in Guernsey and across the Channel Islands to both our clients and to the local funds industry,’ said Evelyn Brady, partner and Guernsey office leader, at PwC Channel Islands.

‘In these ever-changing times, Guernsey has demonstrated its resilience, capabilities and adaptability and continues to have a thriving investment management industry, being well-recognised as a global centre of excellence for investment funds, providing appropriate structures, a robust regulatory environment and first-class professional services.

‘In tough times as well as good, we maintain our focus on providing top-quality advice to local and global organisations in all sectors of the financial services industry and we have considerable confidence in the future, whatever challenges and opportunities lie ahead.’

Carey Olsen continues to dominate the legal market for funds, followed by Mourant and Ogier.

Partner Ben Morgan said that the law firm had also increased its market share by assets under management.

‘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.’