Funds

Offshore funds provide investors with an opportunity to invest alongside one another to take advantage of a fund manager’s time and expertise. They also allow investors to lessen the risks of investment: money is pooled and typically used to acquire a portfolio of investments, thereby reducing investors’ exposure to any single investment. This is known as the principal of diversity or risk spreading and is the main reason people invest in funds.

Funds, also known as collective investment schemes, may be classified in many different ways: open or closed ended, publicly listed or private, retail or institutional, recognised or unrecognised, regulated or unregulated and hedge, private equity, real estate, alternative or debt funds. These categories are loose terms that describe the structure, type of investor, regulatory status and investment focus of the fund.

Funds are now ubiquitous within the financial services industry and practically any investment idea or strategy can be packaged up and offered to investors as a fund. Areas of specialism within the funds sector have evolved to include a wide variety of careers, allowing graduates to pursue professional qualifications in a range of areas such as law, accountancy, company secretarial work and compliance.

Business developments

Jersey and Guernsey both have well-developed funds industries and offer broadly equivalent products. Recent years have seen exceptional growth in funds under administration, especially from alternative and specialist funds investing in niche markets and requiring the high service levels and expertise for which the Channel Islands have built a reputation. The refocus of investment activities to the East is expected to continue, with many new funds now operating in Eastern Europe, the Middle East and the Far East.

The opportunities

Graduates are likely to begin liaising with the fund manager, preparing investor communications, assisting with preparing Net Asset Value (NAV) calculations and managing the cash requirements of the fund soon after joining a firm. Knowledge of fund structures, documentation and regulation will be developed over time, allowing graduates to become involved in the more complex aspects of fund administration.

Some organisations offer training programmes that offer graduates the chance to work towards a professional qualification such as ACCA or ICSA while at the same time gaining practical and relevant industry experience. Competition for jobs can be tough, with employers looking for a range of ‘soft’ skills such as communication skills and enthusiasm as well as top grades.