Good news is coming from the Guernsey Fund managers who are proud to announce a significant increase in the trust fund. This will certainly be welcomed by all parties involved, as the increase is an indicator of good things down the road.
At the end of June 2016, data were released according to which the net asset value of the trust fund amounted to £247.1 b which is a tremendous increase if we consider that it increased by 3.8% since March (when the fund stood at solid £9.1 b). Also, if we compare the data to June last year, the fund increased by 12.3% in just one year.
The AIFMD Passport Approval
The European Securities and Markets Authority (ESMA) has reviewed and assessed Guernsey and other non-EU jurisdictions in order to approve an AIFMD passport to the jurisdictions. So far, the ESMA has given a positive feedback, stating that no major obstacles are standing in the way. They assessed that investor protection, market competition, and risk management are in line with the rules and that they do not contradict the EU standards.
ESMA’s recommendation has been sent to the EU Council, Parliament and the Commission. The Guernsey Fund Management is positive and is looking forward to the final approval of the AIFMD passport, which will open the doors to the EU market and companies. Continue reading…
As the Guernsey Financial Services Commission (GFSC) announced, the Guernsey Fund stood at GB£274.4 billion in 2012, a period when open-ended funds declined. The Guernsey Fund keeps appealing to non-Guernsey funds which accounted for GB£92.6 billion in the Guernsey overall fund in 2012. Closed-ended Guernsey retail fund amounted to GB£130.3 billion in the same period.
The new funds which have been launched in recent years are mostly aimed at the closed-ended sector, private equities, and investment companies. After the global crisis, new investment opportunities emerged, especially in private equity and under performing companies which had the potential to grow in value under active management. Infrastructure and renewables are also targeted by the Guernsey Fund.
The Fund has also been active in seeking international access by applying for the AIFMD passport which would open the door to the EU markets and companies. Continue reading…
For many people, prime brokers and custodians are one and the same thing. However, this is not true. Custodians are charged with the responsibility of keeping assets safe for clients. On the other hand, brokers are responsible for executing trade ventures for the clients. However, brokers can serve as custodians.
Traditionally, the prime brokers only dealt with securities lending, margin financing, consolidated reporting and clearing, settlement and custody. Currently, they are also responsible for ensuring that hedge funds can gain access to currencies and commodities, fixed-income securities, equities and even derivative products. As much as their are some roles which are distinct when it comes to the professionals, there are some which are shared.
1. Capital introduction
Assets can be utilized in bringing in more income. In such a case, the professionals are supposed to introduce the clients to new capital sources and potential investors. This can be done through asset management companies and private banking. Earning more than you have deposited in the bank can hurt no one, and anyone you trust with your money should be able to make this happen. Continue reading…
To establish a Guernsey Trust is a simple procedure involving carrying out the trust deed by the participants and taking over the given property, usually a money amount for running the fund. Still, this is the end phase; now let us reflect back on the pre-establishment conditions.
The conditions for the Guernsey Trust fund can be defined during the settlor’s life or posthumously by following the wishes from the settlor’s will. Usually, the settlor dictates the conditions and the requirements.
What are a Trust Fund, Settlor, Trustee, and Letter of Wishes?
The trust fund represents the trustee’s assets. In general terms, third parties also have the right to invest in the fund anytime, even if they are not one of the initial settlors.
We already said that the settlor is the party which establishes the fund by passing on the trust to the trustee. After the settlor transfers the trust obligations and rights, he/she has no right anymore to interfere in the trust activities, unless specified in the terms. All rights and obligations are passed on to the trustee and beneficiaries, whereby the settlor can be a beneficiary.
As we said, the settlor can reserve some rights specifically listed in the terms. These could usually encompass powers to appoint and remove both, trustees and beneficiaries, and participating in investment decisions regarding the trust. Continue reading…