KMPG Report Says Guernsey Channels USD39bn To UK
by Jason Gorringe, Lowtax.net, London
13 May, 2015
International Capital Flows, a newly released KPMG report commissioned by the States of Guernsey, seeks to quantify the economic benefits provided to the UK and Europe by the Guernsey funds market.
The majority of this GBP25bn in inward investment is deployed into long-term tangible assets, including private equity, infrastructure, and commercial property. The report points out that all of these asset classes can provide economic and social benefits to the UK.
The report also estimates that European investment managers earn fees of GBP1.8bn (USD2.82bn) from managing Guernsey funds, of which GBP1.1bn is earned by managers in the UK.
UK investors, such as pension funds, are also said to benefit from using Guernsey as it gives them far wider access to investment opportunities outside of Europe. The report concludes that Guernsey acts as a conduit for international capital flows, bringing together investors from many different countries and facilitating their access to global assets.
Dominic Wheatley, the Chief Executive of the island's financial services promotional agency Guernsey Finance, said: "The report demonstrates Guernsey's expertise as a funds center 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. The investment Guernsey facilitates into the UK and elsewhere can bring about significant economic and social benefits to those economies. It is also interesting to note the scale of internationalism of the funds industry itself with 90 percent of the GBP1.8bn fees generated from Guernsey domiciled funds going to EU service providers."
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