Figures issued on 1st September 2011 show that the value of investment fund business in Guernsey grew by £10.8 billion (4.1%) during the second quarter of this year.

The increase represents the eighth consecutive quarter of growth and takes the net asset value of funds under management and administration in the Island to a new record high of £274.5 billion at the end of June 2011. This is a rise of £50.2 billion (22.5%) compared to the end of June 2010.

Peter Niven, Chief Executive of Guernsey Finance – the promotional agency for the Island's finance industry internationally, said: "These latest figures show very clearly that Guernsey remains the pre-eminent jurisdiction for fund promoters and managers to use for their investment structures. The last two years have seen our popularity increase in all areas of the fund business and in the last quarter the growth in the closed ended sector is particularly stunning. We continue to provide a comprehensive menu of attractive options when it comes to administrators, custodians, banks and legal and accounting professionals. Those attributes, coupled with a strong but pragmatic regulatory framework and a deep non-executive director pool creates an environment for fund business that is without doubt second to none.

"That said, the current quarter has seen a period of further global turmoil in the markets and, as we did in the 2008/2009 period we will be redoubling our promotional work on the international stage to ensure that both clients and potential clients know very clearly that Guernsey remains firmly open for business and that we are here in the both the good times and the not-so-good times. This is an important message that we need to reiterate particularly at times such as this where uncertainty casts a shadow and where we as an international finance centre rely largely on certainty to maintain our important business flows into the Island."

The new figures from the Guernsey Financial Services Commission (GFSC) show that Guernsey domiciled open-ended funds reached a net asset value of £59 billion at the end of June, which was an increase of £1.5 billion (2.6%) during the quarter and an increase of £5.7 billion (10.7%) year on year.

The Guernsey closed-ended sector was valued at £122.3 billion at the end of June – up £7.5 billion (6.5%) during the second quarter of 2011 and rose £28.3 billion (30.1%) compared to 12 months earlier.

Non-Guernsey schemes, where some aspect of management, administration or custody is carried out in the Island, increased by £1.9 billion (2.1%) during the quarter to reach £93.1 billion at the end of June 2011, which is £16.2 billion (21.1%) higher than the value at the end of June 2010.

Patrick Firth, Chairman of the Guernsey Investment Fund Association (GIFA), said: "These statistics, reflecting a continuation of the growth seen over previous quarters, are particularly encouraging as rises have been seen in all sectors, open-ended, closed-ended and non-Guernsey schemes. This is an endorsement of the diverse nature of the funds industry in Guernsey which continues to be a major force despite difficult global economic conditions and reflects the hard work and dedication of our members."

For more information about Guernsey's finance industry please visit

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.