Latest figures show that the value of investment funds in Guernsey increased by £13.2bn (7.2%) during the first three months of this year.
The third successive quarter of growth takes the total value of funds business in the Island to £197.4bn at the end of March 2010. This represents a year on year rise of £21.5bn (12.2%).
"We can continue to be cautiously optimistic about our funds industry," said Peter Niven, Chief Executive of Guernsey Finance.
"Global economic conditions remain fragile and will be for some time to come so we cannot afford to be complacent but it is encouraging that our funds sector has grown for the third consecutive quarter. This reflects the way in which confidence is gradually returning to the markets and consequently local firms are seeing a growth in business flows.
"Our funds industry is proving robust throughout these challenging times and this quarter of growth at the start of the year strikes a further positive note. It is another step down a long road to recovery that I can see continuing slowly but surely through 2010."
Guernsey domiciled open-ended funds reached a net asset value of £56.1bn at the end of March, which was a rise of £5.4bn (10.7%) during the quarter and an increase of £3.6bn (6.9%) year on year.
The Guernsey closed-ended sector was valued at £92.3bn by the end of March – up £6.9bn (8.1%) during the first three months of 2010 and rose £9.8bn (11.9%) compared to twelve months ago.
Non-Guernsey schemes, where some aspect of management, administration or custody is carried out in the Island, increased by £900mn (1.7%) during the first quarter to reach £49bn, which is £8.1bn (19.8%) higher than the value at the end of March 2009.
The figures issued also show that the gross asset value of all Guernsey funds reached £226.2bn at the end of March. This is a rise of £5.5bn (2.4%) from the end of last year, which was the third quarter for reporting gross figures.
Within the investment management and stockbroking sector, 85 respondents confirmed gross assets under management of £50.9bn – a rise of £3.8bn (8%) during the quarter.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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