STRATEGY STATEMENTGlobal Distribution of Investment Funds: connecting to the parts of the world managers want to reachGuernsey is a global leader in the servicing of alternative assets with a particular strength and specialism in private equity, real estate and infrastructure. That specialism is supported by expertise and maturity in distribution and market access through a network of agreements built up over decades of stability, and a commitment to international engagement.

Global conditions, geopolitical fragmentation and increasing regulatory costs in the era of low returns investing is leading managers to place increasing value on the security and strength of global distribution networks, and to seek jurisdictions that can provide a single secure route to global markets.

All this is compounded by a major pivot by managers seeking to accommodate the more globalised distribution patterns developing in a ‘pre-post-Brexit’ environment.

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.

Our mission

‘To be the leading jurisdictional platform to connect managers to global markets’

This document sets out Guernsey’s strategy to by way of statement in respect of meeting that goal.

Priorities

Our aim is to ensure that global asset managers and their investors better appreciate Guernsey’s existing ‘four corners of the globe’ distribution capability:

Guernsey can help managers reach more than 80% of global wealth with its current market access;

Guernsey can support UK asset managers seeking to pivot to a ‘rest of the world’ business model;

Guernsey’s NPPR is a proven, smarter and faster route to access the EU market.

We will look to promote the island’s existing offering to asset managers and their advisors while we:

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seek to build upon our already-extensive network of agreements to further improve our reach and market access; and

seek to enhance our excellent product range for institutional and private investors;

Push for a global template for funds’ regulatory regimes to drive down the costs of global investing.

Principles

The development of a global distribution of investment funds strategy will be founded on the key principles underlying Guernsey’s financial services sector:

1. Stability – we are a stable, secure jurisdiction2. Substance – we possess a mature, innovative and service-oriented

financial services sector3. Responsibility – we meet international regulatory and tax transparency

standards4. Engagement – we are an engaged global public citizen contributing to

global policy5. Sophistication – our firms provide services to a sophisticated

international client base 6. Innovation – our flexible regulatory and statutory regimes encourage and

facilitate innovation7. Collaboration – industry, government and regulator work together to

provide a healthy and competitive business environment

Positioning and approach

The island is in a strong competitive position which will be enhanced by strategic action.

Guernsey Finance, through its strategy group, will lead and guide stakeholders, including the government, regulator, and the private sector, on a collaborative approach to enhance the island’s competitive position through the following actions:

focus on our core competencies and seek to align with the UK asset management industry as it pivots to a ‘rest of the world’ business model

further develop our network of bilateral agreements which allow for the distribution of Guernsey-domiciled investment funds to investors worldwide

further develop smart, flexible fund products in collaboration with industry to best service institutional and private investors

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develop a programme of engagement to promote the offering by working with commercial organisations and their representative bodies on and off-island

to endorse mutual regulatory recognition as the global model for investment fund distribution

The strategy will be supported by a global distribution team. This group will be responsible for ensuring that the strategy has the best possible chance of success by ensuring the five action points above are fulfilled.

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