The protected cell company has come a long way since its
creation in Guernsey in 1997 as a vehicle designed for use in the
captive insurance industry. The concept underpinning the structure
is that the protected cell company is one separate legal entity
within which there are a series of pools of segregated assets and
liabilities. Apart from the cells there is also a core which is
responsible for the management of the structure and has the board
of the entity attached to it.
Private wealth management open ended asset allocation umbrella
funds
From the captive insurance sector it was an obvious step to
begin to use the protected cell company as the legal structure of
choice for umbrella funds. These open ended structures still exist
and are managed in Guernsey. Well established examples include
Investec World Axis PCC Limited (net value of US$761m spread across
five cells – cautious, core, flexible, global equity and
stellar – all of which are listed on the Channel
