Newly released figures show that the value of investment fund business in Guernsey grew by £18.9 billion (8.4%) during the third quarter of this year.
The increase means that there have now been five consecutive quarters of growth and it has taken the net asset value of funds under management and administration in the Island to a new record high of £243.1 billion at the end of September 2010. This is an increase of £61.6 billion (33.9%) on the same time in 2009.
Peter Niven, Chief Executive of Guernsey Finance – the promotional agency for the Island's finance industry, said: "I am extremely pleased to see that the momentum we picked up in the second half of 2009 is continuing through 2010. It has been a somewhat challenging time but these figures support our feeling that the sector is proving more than resilient and in fact is very well placed to maintain this growth moving into 2011."
The new figures from the Guernsey Financial Services Commission (GFSC) show that Guernsey domiciled open-ended funds reached a net asset value of £53.5 billion at the end of September, which was a rise of £0.2 billion (0.4%) during the quarter and an increase of £2 billion (3.9%) year on year.
The Guernsey closed-ended sector was valued at £105.9 billion at the end of September – up £11.9 billion (12.7%) during the third three months of 2010 and rose £24.8 billion (30.6%) compared to twelve months previous.
Non-Guernsey schemes, where some aspect of management, administration or custody is carried out in the Island, increased by £6.8 billion (8.8%) during the quarter to reach £83.7 billion at the end of September 2010, which is £34.8 billion (71.2%) higher than the value at the end of September 2009.
The gross asset value of all Guernsey and non-Guernsey schemes increased by £27.7 billion (11%) during the third quarter and £62.2 billion (28.6%) year on year to reach £279.4 billion at the end of September 2010.
Within the asset management and stockbroking sector, 97 respondents confirmed gross assets under management of £71.2 billion at the end of September. This is a rise of £5.4 billion (8.2%) during the quarter and £21.7 billion (43.8%) during the previous twelve months.
Mr Niven added that final agreement on the terms of the Alternative Investment Fund Managers (AIFM) Directive will add to Guernsey's confidence on the future prospects for its investment funds industry.
"The latest figures show that Guernsey's funds sector is in good shape and reaching a conclusion on the AIFM Directive has added to our confidence for the future. It is still early days and we continue to look into the implications of the detail but generally it is positive news for Guernsey. Indeed, we believe that the agreement provides the Island with some real opportunities and early in the new year we will be working in conjunction with the government, regulator and industry to deliver some very strong and compelling messages to our introducer markets, most notably in London," he said.
On Tuesday 30th November, Jarrod Cowley-Grimmond, Director of the Finance Sector Development Unit for the Commerce and Employment Department of the Guernsey Government, is speaking at the AIFM Directive Conference in London.
Mr Cowley-Grimmond is speaking on behalf of Guernsey Finance and will outline the implications of the Directive for Guernsey and in particular potential opportunities it presents to the Island's investment funds sector.
Guernsey Finance is also exhibiting at the event with the help of Mr Cowley-Grimmond, Jon Buckland, Chief Officer of the Commerce and Employment Department and Caroline Chan, Partner at law firm Ogier.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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.
