International Capital Flows, a report commissioned by the States of Guernsey and supported by Guernsey Finance, has analysed the economic benefits provided to the UK and Europe by the Guernsey funds market.
The majority of the inward investment is deployed into long-term tangible assets, including private equity, infrastructure and commercial property. All of these asset classes can provide economic and social benefits to the UK.
The report estimates that European investment managers earn £1.8bn of fees from managing Guernsey funds, of which £1.1bn is earned by those in the UK. UK investors, such as pension funds, also benefit from using Guernsey as it gives them a far wider access to investment opportunities outside of Europe. The report concludes that Guernsey is used as a conduit for international capital flows, bringing together investors from many different countries and facilitating their access to global assets.
The report was written by Head of Advisory Ashley Paxton and Advisory Senior Manager Antony Prynn, both from KPMG in the Channel Islands. Data was provided by local investment managers and administrators and interviews were conducted with London-based industry experts including lawyers, LSE sponsors and investment managers.
*The report, International capital Flows – International investment into the UK & Europe: the role of Guernsey’s investment funds sector, can be viewed in full here.