Guernsey-domiciled funds are driving international capital into the UK at twice the pace of overall foreign direct investment, according to a new report by Frontier Economics.
The report, The Value of Guernsey’s Funds Industry to the UK’s Growth Ambitions, commissioned by Guernsey Finance, finds that Guernsey-domiciled funds currently channel £58 billion into UK assets, with investment growing by 7% per year since 2021. Almost 90% of Guernsey-domiciled funds’ managed assets are sourced from non-UK investors, supporting foreign direct investment (FDI) into the UK.
For example, Guernsey-domiciled Gresham House is investing in a range of infrastructure assets including a national network of landscape scale habitat banks to drive biodiversity, vertical farms to boost UK food security and regional fibre-optic networks across the country.
Key Findings:
- Guernsey-domiciled funds channel £58 billion in UK assets
- Almost 90% of Guernsey-domiciled funds’ managed assets are sourced from non-UK investors, supporting FDI into the UK
- Investors from 63 countries each accounted for more than £50 million of assets in Guernsey-domiciled funds in 2024.
- Guernsey funds’ UK investments are growing at 7% per year, double the growth rate of the UK’s FDI position.
- At this pace, Guernsey funds could channel nearly £23 billion in additional private finance into the UK by 2029, surpassing the UK National Wealth Fund’s £22 billion private financing target.
- Guernsey funds support specific areas of the Government’s growth pillars around the country, including Investment, Infrastructure & Planning, Innovation, Net Zero, and Place.
- UK-based fund managers and issuers benefit from Guernsey’s lower cost, faster time to market and deep fund infrastructure expertise – built and refined over 60 years to support the needs of UK firms.
- The International Stock Exchange (TISE), headquartered in Guernsey, supports more than 60% of its listings from UK issuers.
Guernsey-based funds are backing projects in a variety of sectors and across all four nations of the UK, from student housing in Durham and telecommunications in Liverpool to fibre connectivity in Cornwall and Derry, wind farms in Aberdeenshire, and foodtech in Birmingham.
“Guernsey and the UK have a uniquely close relationship built on trust and transparency,” said Rupert Pleasant (pictured), Chief Executive of Guernsey Finance.
“As Frontier Economics’ research makes clear, deepening that partnership offers huge potential, not just for financial services but for national prosperity. Guernsey is delivering international finance to all four nations of the UK, and across all regions of England, in a range of sectors where it’s most needed – and it is doing so at scale and speed.”
