Guernsey’s investment funds sector is playing a pivotal role in supporting the UK's ambitious growth agenda, with billions of pounds of private finance channelled into crucial UK investments, according to a new report from Frontier Economics. 

Findings show that: 

• almost 90% of assets managed by Guernsey-domiciled funds come from non-UK investors; 

• these funds held investment positions worth £58 billion in UK assets as of early 2024; and 

• Guernsey funds’ UK investment position is growing at double the rate of the UK’s overall foreign direct investment inflows position. 

Guernsey funds represent a substantial and increasing source of private finance flowing into the UK, available to support new UK investment projects across all parts of the country. If the current growth rate continues, these funds are projected to contribute nearly £23 billion in additional investments into the UK during this parliamentary term. 

This process is significantly contributing to various growth pillars outlined by the UK government, including infrastructure, housing, innovation, and sustainability. For instance: 

• Infrastructure: Guernsey-domiciled funds have supported projects like Gresham House's fibre-optic network expansions in Birmingham, Leeds, and Manchester, enhancing digital infrastructure and boosting local productivity. 

• Innovation: Venture capital funds from Guernsey have financed promising start-ups, such as the Birmingham-based food tech business Nourished, helping it achieve profitability and national recognition. 

• Sustainability: Investments from Guernsey Green Funds have been pivotal in driving renewable energy projects, including solar farms and battery storage solutions across the UK, aligning with the government’s Net Zero targets.  

Beyond financing, Guernsey’s efficient regulatory environment and lower administrative costs are providing a competitive edge to UK fund promoters. Moreover, The International Stock Exchange (TISE) headquartered in Guernsey supports UK issuers by offering a platform for listing alternative asset securities, further strengthening the UK's global financial position. 

The report concludes that maintaining and deepening this symbiotic relationship between the UK and Guernsey's finance sectors will be critical to achieving sustained, inclusive, and resilient economic growth. 

Read the full report here and listen to our experts discuss these key findings on the Guernsey Finance Podcast here.