The value of investment funds in Guernsey grew by £12bn (7%) in the third quarter of the year.
This positive result reverses the trends experienced during the previous twelve months and takes the net asset value of funds under management and administration in Guernsey to £181.5bn at the end of September.
However, the figures from the Guernsey Financial Services Commission (GFSC) show that this still represents a contraction of £20bn (10%) year on year.
Peter Niven, Chief Executive of Guernsey Finance – the promotional agency for the Island's finance industry, said: "It is very pleasing to see that there is some light at the end of what has been a long tunnel. Many firms in the Guernsey funds sector have been reporting an upturn in business during the last few months and this is now being endorsed by the figures from the Commission.
"It is still early days but hopefully we are starting to see confidence return to the markets. There is a growing feeling that asset values have bottomed and that now is the time to invest for the future through an increasing number of new vehicles.
"Guernsey is picking up business and very well placed to win more due to its comprehensive menu of options, including being able to offer a variety of structures, several different regulatory processes, administration and custody providers and high quality professional services."
Guernsey domiciled open-ended funds reached a net asset value of £51.5bn at the end of September, which is a rise of £0.9bn (1.2%) during the quarter but down £14.2bn (21.6%) year on year.
The closed-ended sector was valued at £81.1bn by the end of the third quarter – up £7.2bn (9.7%) during the three months to the end of September but a decline of £4.8bn (5.6%) compared to twelve months previously.
Non-Guernsey schemes, where some aspect of management, administration or custody is carried out in the Island, saw growth of £3.8bn (8.4%) during quarter three to reach £48.9bn although this is £0.9bn (1.8%) below the value at the end of September 2008.
The GFSC figures also show that the gross asset value of all Guernsey funds reached £217.2bn at the end of September. This is a rise of £15.2bn (7.5%) from the end of June, which was the first quarter for reporting the information.
This latest set of statistics also contains figures supplied by the growing investment management and stockbroking sector, where 75 respondents confirmed gross assets under management of £49.5bn.
Mr Niven added: "Together these figures show that Guernsey's funds industry is beginning to bounce back from the effects of the financial crisis. The extension of the statistics to also include the asset management and stockbroking firms is very much welcomed and will be a useful additional measure for gauging the development of the industry over the coming months and years."
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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