Over the last two decades, there has been a significant increase in Sovereign Wealth Funds (SWFs), indeed at the end of 2019, SWFs maintained some US$8trn in assets under management[1]. This is more than double the value in 2007[2].
As the volume of global investment has increased, SWFs, particularly from Asia, the Middle East and North America, have come together to form ‘super funds’, that have the financial weight to be invested globally across multiple asset classes.
When it comes to managing SWFs in European markets, Jersey, as an internationally respected financial hub, remains a strategic base that provides a gateway to the continent.
Global account visibility
One Jersey firm working with SWFs around the world is Ocorian, which provides corporate administrative services in a multitude of countries.
Ocorian uses its global network of offices to support SWFs at both ends of their investment. As part of that support, Ocorian often works closely with HSBC to ensure its clients have the necessary bank account structures in the relevant markets.
“It’s great for us to work with a bank like HSBC, that understands Sovereign Wealth Funds. Predominantly, HSBC will have a relationship with the client in their home jurisdiction. This then assists us in setting up accounts in that jurisdiction,” explains Nick Terry, an executive director at Ocorian.
“For us as a corporate administrator to then be able to see those accounts from multiple jurisdictions on a single IT platform is very helpful.”
Why Jersey?
Jersey has been a leading international finance centre for almost 60 years. With a forward-thinking approach, the Island is at the forefront of wealth management, funds, capital markets and banking[3].
Jersey’s regulatory framework is one of the strongest in the world and it is designed to bring clarity and transparency to the world of finance. The Island also has a highly skilled workforce and key stakeholders work together to develop products and services[4].
Why HSBC?
HSBC in Jersey has a strong track record in supporting the needs of Sovereign Wealth Funds, whether that’s working with the funds directly or through a Corporate Service Provider.
With an extensive global presence and well-established relationships with other service providers all over the world, HSBC is able to provide well informed access to global markets at a local level.
HSBC is also able to provide visibility to global accounts from one central, digital platform, making it straightforward for clients to manage accounts in home and investment markets simultaneously.
Next steps
Jersey is well situated for the management of SWFs and provides convenient access to investment opportunities in Europe. With HSBC being well established in the Channel Islands and having the global footprint to reach most markets, it provides SWF support to a wide range of clients.
To find out more about how HSBC can help, contact your relationship manager or visit https://www.business.ciiom.hsbc.com/en-gb/sovereign-wealth-funds to view the video on Sovereign Wealth Funds in Jersey.
[1] https://internationalbanker.com/finance/sovereign-wealth-technologys-new-growth-engine/
[2] https://www.worldfinance.com/markets/state-run-sovereign-wealth-funds-continue-to-grow-in-power-and-influence#:~:text=Data%20held%20by%20the%20Sovereign,double%20the%20value%20in%202007.
[3] https://www.jerseyfinance.je/jersey-the-finance-centre/