Guernsey growing green as demand for ethical investment grows

Written by Ray Clancy

Wednesday, 05 May 2010 10:00

Guernsey is becoming home to an increasing number of green funds as it adapts to the effects of the global economic crisis and seeks out new markets, it is claimed.

It is one of the first offshore jurisdictions to see a real evolution in the concept of ethical investing, according to Andrew Boyce, a partner at Carey Olsen.

‘The idea of investing ethically is nothing new but now a growing number of investors are seeking more from their investments, making the impact on the social and natural environment a priority and key decision-making factor in placing those investments,’ he explained.

‘There are an increasing number of investors who want to do more than simply not invest in ethically questionable funds. They are now taking a positive approach and the emerging new trend in funds points towards socially responsible investment (SRI) in funds with a green or cleantech focus or element,’ he added.

He says that Guernsey’s reputation as a financial and in particular a funds centre is also proving an attraction for green funds. ‘Fund promoters and investors have confidence that we have the experience and they know that Guernsey has the solid infrastructure, flexible laws and regulation and tax efficiency to get it right. Guernsey ticks all those boxes for traditional funds and promoters are therefore confident in our ability to host green funds,’ added Boyce.

The global focus as well as the very breadth and scope of the asset it provides good reason to think that Guernsey will continue to be at the forefront of establishing these funds.

‘Fund managers feel secure here because they can access flexible and effective structures and highly professional advisors. Investors are happy with Guernsey domiciled funds because of the existing international level of regulation applied in a pragmatic and flexible manner by a knowledgeable regulator,’ he added.

Boyce provided the example that his firm, Carey Olsen, was instructed to advise on the establishment of a multi jurisdiction sustainable forestry fund for MSS Capital and Oxigen. The Guernsey based fund is an Incorporated Cell Company with three initial incorporated cells of varying terms of 15 years, five years and one year with the aim of £100 million in each cell.