Guernsey's funds industry is outperforming some of its nearest competitors, according to Peter Niven, Chief Executive of Guernsey Finance.
Figures show that the value of funds under management and administration in Guernsey reached £207.2bn at the end of June 2008 – up £3.4bn (1.7%) over the quarter and £51.6bn (33%) year on year despite the difficult market conditions.
By comparison, the value of Jersey's funds business shrank by £1.8bn (0.7%) during the second quarter of this year to reach £244.2bn at the end of June. This is a rise of £33.8bn (16%) since the end of June 2007.
At that time Jersey had £54.8bn more funds business than Guernsey but one year later and that gap has narrowed to just £36.9bn.
Mr Niven said: "We thought our performance was strong considering the world economic scene but it now looks even more encouraging when you consider that some of our competitors such as Jersey have seen a reduction in the value of their business.
At the moment Guernsey is very much bucking the trend and that is because promoters and sponsors find our offering so attractive. Pragmatic regulation, excellent corporate governance through a network of qualified non-executive directors and a broad range of specialist professionals, including administrators, who work as a team are some of the primary ingredients that make the Island's funds industry the success it has become.
"It is difficult to say now exactly what the figures will be for the third quarter but there is certainly a mood of optimism. We also know of some specific promoters who are well advanced in their plans which will keep the figures buoyant in the final quarter of the year. However, we're not resting on our laurels. Guernsey Finance is stepping up its promotional activities through events such as the Guernsey Funds Forum in London and other more targeted initiatives."
The Guernsey Funds Forum takes place at the Queen Elizabeth II Conference Centre, Westminster, London, on Tuesday 7 October. Keynote speaker is Nicola Horlick, Chief Executive Officer, Bramdean Asset Management. As well as an exhibition comprising the leading names from Guernsey's funds industry, the event includes the sessions 'Guernsey – a growth industry' chaired by Nigel Farr, Partner, Herbert Smith; 'Listing and Liquidity' chaired by Tammy Menteshvili, Chief Executive, Channel Islands Stock Exchange (CISX); and 'Private equity – looking forward' chaired by Veronica Eng, Permira.
In the second quarter of the year the value of private equity funds in Guernsey grew by nearly £1bn (2.5%) to reach £36.2bn. This is despite the difficult market conditions that have seen amounts raised by private equity funds across Europe fall by some 10% this year.
A Guernsey Private Equity Masterclass is being held on Wednesday 8 October at the Caledonian Hilton Hotel, Princes Street, Edinburgh. Keynote speaker Alastair Maclean, Partner at Maclay Murray and Spens LLP, will be joined by a panel of Guernsey industry experts who will explain more about private equity in the Island.
The value of deposits held by Guernsey banks reached £128.1bn by the end of June 2008 – a fall of £1.4bn (1.1%) during the quarter but a rise of £20bn (18.5%) year on year. The value of deposits held by Jersey banks reached £196.9bn by the end of June 2008 – a fall of £13.1bn (6.2%) during the quarter but a rise of £14.8bn (7%) since the end of June 2007. At that time Jersey had £103.5bn more banking deposits than Guernsey but one year later and that gap has narrowed to £68.7bn.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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