The report, International Capital Flows, comes after Ed Miliband threatened to blacklist so-called tax havens such as Guernsey if Labour came into power to try to boost the Treasury’s revenue.
However, this study – commissioned by the States of Guernsey and supported by Guernsey Finance – cited that both the UK and Europe benefitted economically from the Guernsey funds market. The main benefit was said to be its influence in bringing together investors from different countries and giving them access to global assets.
It also estimated that European investment managers earn £1.8bn of fees generated from managing Guernsey-domiciled funds, of which £1.1bn is earned by those in the UK.
Economic and social benefits
“The report demonstrates Guernsey’s expertise as a funds centre and as a facilitator of global investment into the UK, European and global economies – a message we have been delivering for a number of years,” said Dominic Wheatley, chief executive of Guernsey Finance.
“The investment Guernsey facilitates into the UK and elsewhere can bring about significant economic and social benefits to those economies.”
Most of the Guernsey funds were found to invest in long-term assets, such as private equity, infrastructure and commercial property in the UK. Pension funds were also said to benefit because the jurisdiction gives them a far wider access to investment opportunities outside of Europe.
Partnership
Minister for the commerce and employment department, deputy Kevin Stewart, said: “The picture that has been built up will ensure a greater understanding of the funds sector, and of Guernsey as an international finance centre.
“Guernsey is a partner of the UK and Europe’s growth and prosperity agenda, and this report emphasises that partnership.”
According to the 2014 Monterey statistics, KPMG audits 45% of the net asset value of all funds in Guernsey.
