The net asset value ("NAV" ) of collective investment funds under management in Guernsey were slightly down in the third quarter, largely due to the effects of currency exchange rates at the end of the period and a decline in equity market performance in some emerging economies. Funds under management totalled £14.6 billion, down £151 million (1.0%) from the previous quarter. The overall total number of funds has resumed to the level set at the end of March this year (335) but the underlying value of funds has increased by 5.1 % since that period.
There was encouraging news in the open-ended sector in that although the number of authorised funds has been reduced by a net figure of five funds, the departure of some eight retail funds and the suspension of two further funds (at their managers' request) has been countered by five new fund authorisations and net new investment of £358 million in the existing funds. The overall "NAV" of open-ended funds remained virtually unchanged at the end of the third quarter, standing at £9.8 billion (down 0.1% from the last quarter). Fund managers continued to take advantage of the economies of scale and increased the number of new classes of umbrella funds by introducing a further three sub-classes., in consequence the total number of sub-classes reached a new high of 459.
In the closed-ended sector assets under management fell by approximately 2.8% to £4.9 billion (down £140 million from the previous quarter). Approximately 5'J% of Guernsey's closed-ended funds ate US Dollar denominated and a combination of USD exchange rates against a basket of currencies and the underlying value of emerging markets, particularly equities in India, South America and the Far East, has had a significant impact on the third quarter statistics. The third quarter saw two new promoters for Guernsey funds - a South African and a Spanish promoter. Three new funds were granted consent in the quarter, although the total number of closed-end funds has increased by two as a result of one fund liquidation.
There are currently 31 new funds in the pipeline of which 16 are closed-ended and 15 are open-ended. These show strongly interest in Limited Partnership Funds. Emerging Blankets Funds (both open-ended and closed-ended) and Hedge Funds. To highlight but a few in the open-ended sector there are two new India funds, a fund of hedge funds and a new French promoter awaiting approval to launch a Russia fund. In the closed-ended sector, there are three new Limited Partnership funds and a new promoter (Philippine) awaiting consent to launch a Philippine fund.
An Appendix which summarises and analyses the returns is attached.
Enquiries to Tammy Menteshvili, Deputy Superintendent of Investment Business - Tel: (01481)-712706
GUERNSEY COLLECTIVE INVESTMENT FUNDS : STATISTICS
APPENDIX
1. OPEN-ENDED SCHEMES
At Number of Authorised Value of Schemes Number of Registered
schemes (£mn) Holders
31 Dec 1989 123 2,563 60,054
31 Dec 1990 156 3,069 67,767
31 Dec 1991 153 4,297 61,524
31 Dec 1992 158 5,462 68,721
31 Mar 1993 169 5,957 80,264
30 Jun 1993 174 6,166 82,7O2
30 Sep 1993 185 7,217 84,839
31 Dec 1993 194 8,310 88,721
31 Mar 1994 186 8,630 92,O7O
30 Jun 1994 194 8,358 9O,442
30 Sep 1994 199 8,350 95,473
31 Dec 1994 201 7,879 93,660
31 Mar 1995 198 7,441 92,924
30 Jun 1995 198 8,010 98,536
30 Sep 1995 200 8,142 100,447
31 Dec 1995 194 8,389 103,853
31 Mar 1996 189 9,108 105,847
30 Jun 1996 194 9,769 lO6,7l6
30 Sep 1996 189 9,758 103,835
During quarter Sales Repurchases Net investment
ended (£mn) (£mn)
31 Dec 1989 512 260 252
31 Dec 1990 409 183 226
31 Dec 1991 619 263 356
31 Dec 1992 693 692 1
31 Mar 1993 915 801 114
30 Jun 1993 862 817 45
30 Sep 1993 l,124 706 418
31 Dec 1993 1,251 592 659
31 Mar 1994 1,404 975 429
30 Jun 1994 770 691 79
30 Sep 1994 652 700 (48)
31 Dec 1994 508 725 (217)
31 Mar 1995 499 619 (120)
30 Jun 1995 824 609 215
30 Sep 1995 622 579 43
31 Dec 1995 761 715 46
31 Mar 1996 1,116 785 331
30 Jun 1996 1,058 702 356
30 Sep 1996 991 633 358
ANALYSIS BY TYPE, CLASS, ETC AT 30 SEPTEMBER 1996
Type Total Class A Class B OEIC UT Stock-Exchange
Listed
Securities Schemes 84 18 66 51 33 31
Umbrella Funds 69* 17 52 45 24 16
Govt & other Public Funds 14 5 9 7 7 1
Funds of Funds 6 1 5 6 - -
Futures & Options Funds 3 - 3 3 - 2
Money Market Funds 3 1 2 2 1 -
Feeder Funds 3 1 2 2 1 1
Other 7 - 7 3 4 2
TOTAL 189 43 146 119 70 53
* COMPRISING 459 SUB-FUNDS
2. CLOSED-ENDED SCHEMES
At Number of Value of Number of Stock-Exchange
Schemes Schemes (£mn) Registered Holders Listed
31 Dec 1990 55 1,341 5,690 N/A
31 Dec 1991 68 2,lll 6,069 27
31 Dec 1992 78 2,829 6,221 31
31 Mar 1993 79 2,824 6,455 31
30 Jun 1993 80 3,047 7,106 32
30 Sep 1993 84 3,149 5,916 32
31 Dec 1993 86 3,763 5,972 33
31 Mar 1994 89 3,643 6,332 35
30 Jun 1994 96 3,620 6,479 36
30 Sep 1994 101 3,574 6,773 36
31 Dec 1994 107 3,596 6,992 38
31 Mar 1995 113 3,225 7,760 39
30 Jun 1995 120 3,908 8,167 42
30 Sep 1995 124 4,056 7,547 42
31 Dec 1995 140 4,447 8,096 43
31 Mar 1996 146 4,828 8,392 45
30 Jun 1996 144 5,025 8,437 48
30 Sep 1996 146 4,885 8,287 47
3. TOTAL FUNDS UNDER MANAGEMENT
At Number of Value of Number of Stock-Exchange
Schemes Schemes (£mn) Registered Holders Listed
31 Dec 1990 211 4,410 73,457 N/A
31 Dec 1991 221 6,408 67,593 59
31 Dec 1992 236 8,291 74,942 64
31 Mar 1993 248 8,781 86,719 65
30 Jun 1993 254 9,213 89,808 66
30 Sep 1993 269 10,366 90,755 68
31 Dec 1993 280 12,073 94,693 72
31 Mar 1994 275 12,273 98,402 78
30 Jun 1994 290 11,978 96,921 82
30 Sep 1994 300 11,924 102,246 84
31 Dec 1994 308 11,475 100,652 90
31 Mar 1995 311 10,666 100,684 90
30 Jun 1995 318 11,918 106,703 93
30 Sep 1995 324 12,198 107,994 93
31 Dec 1995 334 12,836 111,949 94
31 Mar 1996 335 13,936 114,239 96
30 Jun 1996 338 14,794 l15,l53 100
30 Sep 1996 335 14,643 112,122 100
NOTES: Class A schemes are those which meet the Commission's Collective
Investment Scheme Rules 1988 and are thereby eligible for recognition by the
UK Securities and investments Board for sale to the public in the United
Kingdom by virtue of Guernsey's designation under Section 87 of the Financial
Services Act 1986.
Class B schemes are also authorised under the Protection of investors Law
1987, and are subject to the Collective Investment Schemes (Class 3) Pules 1990.
OEIC - open-ended investment companies
UT - unit trusts
For further information contact Peter Crook on Tel: +44 (0) 1481 712 706 or fax: +44 (0) 1481 712 010 or e-mail: info@gfsc.guernseyci.com
Visit the Guernsey Financial Services Commission Web Site at Click Contact Link
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.