The value of Guernsey funds has decreased by £5.8bn (2.8%) during the quarter to the end of September primarily due to the performance of global markets.
The reduction over the three months has taken the total value of funds under management and administration in the Island to £201.4bn.
"These figures are expected given the performance of the global markets during this three month period," said Peter Niven, Chief Executive of Guernsey Finance.
"It must also be remembered that the statistics are to the end of September and therefore don't take into account the effect of further asset falls that we have seen across the world during October. However, the positive side of this is that I expect these reductions to have been regained off the back of improving market conditions through to the end of the year."
Statistics released today by the Guernsey Financial Services Commission (GFSC) show that the value of Guernsey domiciled closed-ended funds grew by £1.1bn (1.3%) over the quarter to reach £85.9bn.
The value of Guernsey domiciled open-ended funds fell by £8bn (10.8%) over the quarter to £65.7bn. The decrease is primarily due to the adverse performance of global markets but also reflects the fact that a fund previously established in Guernsey has migrated to another jurisdiction.
Administration functions for the fund are still provided from Guernsey and therefore it is now represented within the figures for non-Guernsey schemes. Non-Guernsey schemes, for which some aspect of management and administration is carried out in the Island, increased by £1.1bn (2.1%) to leave their value at £49.8bn.
Mr Niven added: "There is still a certain amount of new business coming through but clearly this is at a lower level than in the last two or three years – when we had record flows – because of the lack of confidence in the wider markets. Investors certainly seem to be waiting for further falls in asset values before they feel the time is right to come back into the market. Therefore we are using this as an opportunity to take stock and so make sure that we are in pole position for when confidence returns and business levels increase."
Since the inception of Qualifying Investor Funds (QIFs) in February 2005, 210 QIFs have received consent or approval from the GFSC – with five of those in the third quarter of 2008.
On 1 February 2007, a registered closed-ended fund regime was introduced. By the end of June 2008 a total of 126 such funds had received consent from the GFSC, with 12 coming in the three months to the end of September 2008.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com
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