Guernsey Still Tops: LSE

Guernsey remains home to more non-UK entities listed on the London Stock Exchange (LSE) than any other jurisdiction globally, according to figures from the market authority.

LSE data show that at the end of December 2011 there were 108 Guernsey-incorporated entities listed on either the Main Market, the Alternative Investment Market (AIM), the Specialist Fund Market (SFM) or as ‘Trading Only’.

This is comfortably more than the major economic powers of the US (47), Russia (33), India (31), Australia (26), South Africa (11), Germany (7), China (5) and France (4). It was also well ahead of competitor centres Jersey (69), Ireland (57), the Isle of Man (53), Bermuda and Cayman (both 45) and BVI (39). These are trailed by Luxembourg (14), Gibraltar (4) and Malta (0).

Guernsey also leads the way in terms of new entities listed on the LSE markets during last year, with 12 added by both Guernsey and Jersey during 2011. This is followed by the Isle of Man and Russia (both 7) and Australia and Cayman (both 5).

Fiona Le Poidevin, deputy chief executive at Guernsey Finance – the promotional agency for the Island’s finance industry, says: “The fact that so many companies and securities on the exchange are incorporated in Guernsey means that we have developed significant expertise of London listings. The way in which this is recognised by professional advisers in the City and elsewhere is demonstrated by our position at the forefront of new listings during 2011. 

“Guernsey companies also received approval to list on the Hong Kong Stock Exchange (HKEx) during last year, which added to the capability to list on stock exchanges in London, Amsterdam, Frankfurt, Australia and Toronto, among others, as well as the local Channel Islands Stock Exchange (CISX). This means that Guernsey provides a gateway to access the capital markets of both Europe and Asia, where the developing economies are accumulating increasing amounts of private and corporate wealth and looking for suitable investment opportunities. We have already held discussions in Singapore and Shenzhen and we will be moving these forward during this year with a view to Guernsey companies listing on these exchanges in the future.”

Figures from the LSE show that of its peer group, Guernsey (60) has the most number of entities listed on the Main Market of the LSE, followed by Jersey (34), Ireland (28) and Bermuda (24).

The Isle of Man (41) is home to the most number of AIM-listed entities, with Guernsey (38) taking second place, then Cayman (37) and BVI and Jersey (both 34).

Guernsey is also home to nearly three-quarters of all listings on the SFM.

In addition, it says it is the clear market leader in terms of the number of ‘Equity Investment Instruments’ – the majority of investment funds – listed on the LSE, where Guernsey has 68, followed by Cayman (15) and Jersey (11).

Patrick Firth, chairman of the Guernsey Investment Fund Association (GIFA), says: “It is very encouraging to see that fund professionals continue to recognise Guernsey’s strong capabilities for listing a wide variety of fund structures on such a major international stock exchange. The Island is seeing particularly good growth in closed-ended funds and in particular, those investing in alternative asset classes and where there is a demand to list on a stock exchange whether the local CISX or further afield in London, continental Europe or beyond into Asia.”