(Update Issue Number 8 Autumn/Winter 1996)
STEADY GROWTH
As this graph illustrates, there has been steady growth over the years and the value of funds under management has increased 232% since 1990 to the current level of £14.6 billion (and this figure excludes the considerable number of non-Guernsey funds which employ local managers or custodians).
FUND STRUCTURES
Collective investment funds established in Guernsey fall into two categories: open and closed-ended funds and there are a wide range of legal structures. Investment funds are normally constituted as companies, trusts or limited partnerships.
There are two pieces of legislation in place to control the establishment of collective investment schemes, the Protection of Investors Law under which open-ended schemes are authorised and the Control of Borrowing Ordinances under which closed-ended schemes are granted consent.
TRENDS IN OPEN-ENDED SECTOR
In the open-ended sector, there continues to be strong investor interest, particularly in emerging market funds. The number of existing umbrella funds represents approximately 37% of the total of the various types of open-ended fund - and it is expected that new products will continue to be established as constituents of umbrella funds as promoters recognise the economies of scale offered by umbrella funds.
In some statistical analyses, the umbrella classes are counted as separate schemes, which in Guernsey's case, would bring the total number of authorised open-ended schemes to 579.
TRENDS IN CLOSE-ENDED SECTOR
There is strong interest in venture capital funds, derivative funds, Russia funds and Islamic funds. Of the current 146 closed-ended funds, although the majority are investment companies, 34 are closed-ended unit trusts.
After a slow start, interest in Limited Partnership funds has picked up and of the three such funds in the pipeline at the end of the third quarter 1996, two have subsequently been granted consent. (Guernsey's Limited Partnership Law came into effect in February 1996).
It is expected that Guernsey will continue to be attractive to new promoters and innovative products well into the future.
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.
