Guernsey-domiciled funds are accelerating foreign investment into the UK, moving capital at twice the pace of overall foreign direct investment (FDI), according to a new report by Frontier Economics. The research, commissioned by Guernsey Finance, highlights that these funds currently manage £58 billion in UK assets, with investments growing 7% annually since 2021.

Almost 90% of these funds’ assets come from non-UK investors, spanning 63 countries where each investor contributed over £50 million in 2024 alone. This inflow positions Guernsey funds as a key driver of FDI, particularly in infrastructure, innovation, and sustainable development.

For instance, Guernsey-domiciled Gresham House is investing in projects ranging from landscape-scale habitat banks for biodiversity to vertical farms enhancing UK food security and regional fibre-optic networks across the country.

Key Takeaways from the Report:

• Guernsey funds’ investments are projected to generate an additional £23 billion in private finance by 2029, surpassing the UK National Wealth Fund’s £22 billion target.
• Investments span all four nations of the UK, from student housing in Durham to wind farms in Aberdeenshire and telecom infrastructure in Liverpool.
• UK fund managers benefit from Guernsey’s lower costs, faster time to market, and 60+ years of fund infrastructure expertise.
• The International Stock Exchange (TISE), based in Guernsey, lists over 60% of UK issuers, further strengthening cross-border financial connectivity.

“Guernsey and the UK have a uniquely close relationship built on trust and transparency,” said Rupert Pleasant, CEO of Guernsey Finance. “Frontier Economics’ research shows that deepening this partnership delivers scale, speed, and impact across sectors that matter most for national prosperity.”

With capital flowing into net zero projects, infrastructure, innovation, and regional development, Guernsey-domiciled funds are emerging as a pivotal force shaping the UK’s economic future, highlighting the strategic role of international finance in driving sustainable growth.