Following the introduction in March of a new category of open-ended fund (see endnote 1) aimed at qualifying professional investors (Class Q schemes - see endnote 2), the first Class Q scheme was authorised by the Commission during the quarter ended 30 June 1998. The Commission's initiative was taken against the background of demand for this new product from international fund sponsors, and it is of note that the first sponsor to take advantage of this opportunity was an institution not precisouly represented on the Island.
The Asian crisis and sharp falls in Eastern Europe exchanges affected the total value of funds under management which decreased over the quarter by 4.2% to just under £16 billion; this trend was reflected also in the value of non-Guernsey schemes serviced from Guernsey which fell by 3.8% to just under £5 billion despite the addition of 2 new funds.
However, the total number of investors rose by 4.9% to a new record of 135,275 and the outlook remains positive with 3 open-ended funds authorised and 4 closed-ended funds (see endnote 3) granted consent in July, and some 36 funds in the pipeline.
1) Open-ended schemes are funds which are offered for sale throughout the life of the fund and without limitation on the shares/units which investors are entitled to redeem on demand subject to any applicable notice period.
2) Class Q schemes are designed for qualifying professional investors and are subject to the Collective Investment Schemes (Class Q) Rules 1998 made under the Protection of Investors (Bailiwick of Guernsey) Law, 1987.
3) Closed-ended schemes normally have a fixed capital issued once and for all and investors have no absolute entitlement to redeem their shares/units.
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