With developments such as Brexit re-shaping the funds distribution landscape, the UK Crown Dependency has announced a strategy that it claims will enhance its status as a global platform for investments.

The promotional agency for Guernsey’s financial services industry has fired another salvo in the battle to capture market share and build new business links in a post-Brexit world.

Guernsey Finance, which as reported recently has set up a permanent London base for the first time, yesterday announced a “global distribution strategy statement” aimed at boosting the UK Crown Dependency’s status as a centre for domiciling alternative investment funds, such as hedge funds, real estate and private equity funds.

The body said it intends to boost its status as an international fund management hub in four main ways: Align with the UK asset management industry as it pivots to a “rest of the world” business model; develop its network of bilateral agreements which allow for the distribution of Guernsey-domiciled investment funds to investors worldwide; develop more fund products to serve institutions and private investors; work with commercial organisations on and off the island and endorse mutual regulatory recognition as the global model for how to distribute investment funds.

The small European jurisdiction aims to be the “leading jurisdictional platform to connect managers to global markets”, Guernsey Finance said. Guernsey can, the statement said, help UK fund management firms as the UK pivots away from the European Union and seeks channels to international markets. "Guernsey is well placed to lead the market to service the ‘single source’ jurisdictional requirements for structuring, distribution and administration services of global clients as these trends gather momentum," it said.

Among the proposals in the strategy statement is to “push for a global template for funds’ regulatory regimes to drive down the costs of global investing”.

“Guernsey’s proven, smarter, faster route to market supports managers connect to the global markets they want to reach – through Guernsey global managers can currently reach more than 80 per cent of global wealth. We intend to build on that position to become the global jurisdictional platform supporting managers to connect to global markets,” Dr Andy Sloan, acting director of strategy, said in a statement.

With European Union members and financial hubs such as Ireland, Luxembourg and Malta pitching for business as the UK pushes to leave the EU, offshore centres such as Guernsey, the Isle of Man and Jersey are seeking to use their blend of linkage to the UK, separate sovereignty and non-membership of the EU to provide a distinct channel towards major international markets.

Recent data points to a growth in the number of Guernsey-based funds and total assets under management. On 12 March, figures from the Guernsey Financial Services Commission showed there was a rise of £1 billion in the three months to the end of 2017; the total figure AuM figure of £270 billion ($371.7 billion) also represented an increase of about £14 billion (or 5.6 per cent) over the previous 12 months and a third consecutive year of growth for Guernsey’s fund sector. Guernsey’s financial services regulator approved 18 new investment funds during Q4 2017, 17 of which were closed-ended and the remaining one open-ended, up 44.4 per cent on Q3’s 10 new funds.