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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.