Mixed messages in Guernsey Q3 funds business growth numbers

Net asset values of Guernsey-domiciled open ended funds fell 10% year-on-year to the end of the third quarter, although the value of all funds under management and administration on the island hit £274.4bn by the end of September 2012, an increase of £3.3bn or 1.2% year-on-year, figures from the Guernsey Financial Services Commission suggest.

The jurisdiction has grown its business by more than half, or £92.9bn since the end of September 2009, the GFSC said.

Fiona Le Poidevin, chief executive of Guernsey Finance (pictured) said: “It is encouraging to see continued growth in the Guernsey funds sector. We have now enjoyed three consecutive quarters of growth since the beginning of 2012 and we hope that this trend will continue. It shows confidence in our services at a time when market conditions, particularly in the Eurozone, remain challenging and investors continue to display a certain degree of caution.”

The Guernsey closed-ended sector was valued at £130.3bn at the end of September – up £4.2bn (3.3%) during the third quarter, and up £4.6bn (3.7%) year-on-year.

Guernsey domiciled open-ended funds reached a net asset value of £51.5bn at the end of September. This was a decrease of £-1.6bn (-3.2%) during the quarter, and down £-5.6bn (-10%) year-on-year.

Non-Guernsey schemes, where some aspect of management, administration or custody is carried out in the Island, grew by £1bn (1%) during the quarter to reach £92.6bn at the end of September. This is £4.6bn (5.2%) higher than the value at the end of September 2011.

Le Poidevin said: “Further increases in closed-ended funds and non-Guernsey schemes reflect our current strengths in these areas and match with what industry is reporting to us anecdotally. We note the decline in open-ended funds and will monitor this position going forward.”

Horace Camp, chairman of the Guernsey Investment Fund Association (GIFA), said: “We note the decline in numbers and values of open-ended funds and a number of initiatives are under way to reverse this trend, chief amongst these is Guernsey’s proposed new AIFMD compliant regime. In addition the proposed changes to the non-Guernsey schemes will reinforce success in another important sector of our comprehensive offering.”

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