Travel improvements needed to keep Guernsey competitive

Wednesday 07 October 2020

Guernsey's investment funds sector is strengthened by 'strong expertise' and 'reputable service providers' - but its ongoing success may depend on improvements to business travel connections, according to a new report.

GIFA Chair Christopher Jehan has shared this insight as part of an overview of the island's financial services, which has been put together by the Guernsey International Business Association.

There are around 1,000 investment funds domiciled or administered in Guernsey, and on 31 March this year, the net asset value of those funds was £267.1 billion. The sector employs roughly 8% of the island’s workforce, most of whom were able to work from home during lockdown.

While the sector has seen growth throughout the pandemic, Mr Jehan warns that a ‘lean period’ could be seen going into 2021, along with delays to product launches amidst the ongoing crisis.

He added that Guernsey’s competitors, such as Jersey, Luxembourg and Ireland have had considerable success from direct investments in global marketing.

“Guernsey needs to be able to travel to develop and build trusted relationships around the globe,” he said. “As such, our business travel needs to keep pace with the rest of the world.”

This is one of several issues that Mr Jehan said has been holding the sector back.

"The funds industry has faced challenges historically including air travel costs, onerous regulatory requirements, being less competitive with regard to other jurisdictions, slow-moving legal drafting and population/housing restrictions.”

With the EU likely to become a ‘smaller, more challenging’ market for Guernsey in the coming years, the sector’s opportunities will come from further afield, in target growth markets in Asia and Africa.

Pictured top: Christopher Jehan, Chair of the Guernsey Investment & Funds Association