Guernsey: Guernsey Funds Stable Following Volatile Third Quarter

Last Updated: 28 October 1996
For immediate use

The net asset value ("NAV" ) of collective investment funds under management in Guernsey were slightly down in the third quarter, largely due to the effects of currency exchange rates at the end of the period and a decline in equity market performance in some emerging economies. Funds under management totalled £14.6 billion, down £151 million (1.0%) from the previous quarter. The overall total number of funds has resumed to the level set at the end of March this year (335) but the underlying value of funds has increased by 5.1 % since that period.

There was encouraging news in the open-ended sector in that although the number of authorised funds has been reduced by a net figure of five funds, the departure of some eight retail funds and the suspension of two further funds (at their managers' request) has been countered by five new fund authorisations and net new investment of £358 million in the existing funds. The overall "NAV" of open-ended funds remained virtually unchanged at the end of the third quarter, standing at £9.8 billion (down 0.1% from the last quarter). Fund managers continued to take advantage of the economies of scale and increased the number of new classes of umbrella funds by introducing a further three sub-classes., in consequence the total number of sub-classes reached a new high of 459.

In the closed-ended sector assets under management fell by approximately 2.8% to £4.9 billion (down £140 million from the previous quarter). Approximately 5'J% of Guernsey's closed-ended funds ate US Dollar denominated and a combination of USD exchange rates against a basket of currencies and the underlying value of emerging markets, particularly equities in India, South America and the Far East, has had a significant impact on the third quarter statistics. The third quarter saw two new promoters for Guernsey funds - a South African and a Spanish promoter. Three new funds were granted consent in the quarter, although the total number of closed-end funds has increased by two as a result of one fund liquidation.

There are currently 31 new funds in the pipeline of which 16 are closed-ended and 15 are open-ended. These show strongly interest in Limited Partnership Funds. Emerging Blankets Funds (both open-ended and closed-ended) and Hedge Funds. To highlight but a few in the open-ended sector there are two new India funds, a fund of hedge funds and a new French promoter awaiting approval to launch a Russia fund. In the closed-ended sector, there are three new Limited Partnership funds and a new promoter (Philippine) awaiting consent to launch a Philippine fund.

An Appendix which summarises and analyses the returns is attached.

Enquiries to Tammy Menteshvili, Deputy Superintendent of Investment Business - Tel: (01481)-712706

GUERNSEY COLLECTIVE INVESTMENT FUNDS : STATISTICS

APPENDIX

1. OPEN-ENDED SCHEMES

   At        Number of Authorised    Value of Schemes    Number of Registered
                   schemes                (£mn)                 Holders

31 Dec 1989          123                  2,563                  60,054
31 Dec 1990          156                  3,069                  67,767
31 Dec 1991          153                  4,297                  61,524
31 Dec 1992          158                  5,462                  68,721
31 Mar 1993          169                  5,957                  80,264
30 Jun 1993          174                  6,166                  82,7O2
30 Sep 1993          185                  7,217                  84,839
31 Dec 1993          194                  8,310                  88,721
31 Mar 1994          186                  8,630                  92,O7O
30 Jun 1994          194                  8,358                  9O,442
30 Sep 1994          199                  8,350                  95,473
31 Dec 1994          201                  7,879                  93,660
31 Mar 1995          198                  7,441                  92,924
30 Jun 1995          198                  8,010                  98,536
30 Sep 1995          200                  8,142                 100,447
31 Dec 1995          194                  8,389                 103,853
31 Mar 1996          189                  9,108                 105,847
30 Jun 1996          194                  9,769                 lO6,7l6
30 Sep 1996          189                  9,758                 103,835

During quarter      Sales        Repurchases      Net investment
    ended                           (£mn)             (£mn)

31 Dec 1989          512             260               252
31 Dec 1990          409             183               226
31 Dec 1991          619             263               356
31 Dec 1992          693             692                 1
31 Mar 1993          915             801               114
30 Jun 1993          862             817                45
30 Sep 1993        l,124             706               418
31 Dec 1993        1,251             592               659
31 Mar 1994        1,404             975               429
30 Jun 1994          770             691                79
30 Sep 1994          652             700               (48)
31 Dec 1994          508             725              (217)
31 Mar 1995          499             619              (120)
30 Jun 1995          824             609               215
30 Sep 1995          622             579                43
31 Dec 1995          761             715                46
31 Mar 1996        1,116             785               331
30 Jun 1996        1,058             702               356
30 Sep 1996          991             633               358

ANALYSIS BY TYPE, CLASS, ETC AT 30 SEPTEMBER 1996

Type                      Total  Class A  Class B   OEIC   UT  Stock-Exchange
                                                                  Listed

Securities Schemes          84      18      66       51    33       31
Umbrella Funds              69*     17      52       45    24       16
Govt & other Public Funds   14       5       9        7     7        1
Funds of Funds               6       1       5        6     -        -
Futures & Options Funds      3       -       3        3     -        2
Money Market Funds           3       1       2        2     1        -
Feeder Funds                 3       1       2        2     1        1
Other                        7       -       7        3     4        2

TOTAL                      189      43     146      119    70       53

* COMPRISING 459 SUB-FUNDS

2. CLOSED-ENDED SCHEMES

     At     Number of     Value of          Number of    Stock-Exchange
             Schemes    Schemes (£mn)  Registered Holders    Listed

31 Dec 1990     55         1,341              5,690            N/A
31 Dec 1991     68         2,lll              6,069             27
31 Dec 1992     78         2,829              6,221             31
31 Mar 1993     79         2,824              6,455             31
30 Jun 1993     80         3,047              7,106             32
30 Sep 1993     84         3,149              5,916             32
31 Dec 1993     86         3,763              5,972             33
31 Mar 1994     89         3,643              6,332             35
30 Jun 1994     96         3,620              6,479             36
30 Sep 1994    101         3,574              6,773             36
31 Dec 1994    107         3,596              6,992             38
31 Mar 1995    113         3,225              7,760             39
30 Jun 1995    120         3,908              8,167             42
30 Sep 1995    124         4,056              7,547             42
31 Dec 1995    140         4,447              8,096             43
31 Mar 1996    146         4,828              8,392             45
30 Jun 1996    144         5,025              8,437             48
30 Sep 1996    146         4,885              8,287             47

3.   TOTAL FUNDS UNDER MANAGEMENT

     At     Number of     Value of           Number of      Stock-Exchange
             Schemes    Schemes (£mn)    Registered Holders     Listed

31 Dec 1990    211         4,410             73,457             N/A
31 Dec 1991    221         6,408             67,593              59
31 Dec 1992    236         8,291             74,942              64
31 Mar 1993    248         8,781             86,719              65
30 Jun 1993    254         9,213             89,808              66
30 Sep 1993    269        10,366             90,755              68
31 Dec 1993    280        12,073             94,693              72
31 Mar 1994    275        12,273             98,402              78
30 Jun 1994    290        11,978             96,921              82
30 Sep 1994    300        11,924            102,246              84
31 Dec 1994    308        11,475            100,652              90
31 Mar 1995    311        10,666            100,684              90
30 Jun 1995    318        11,918            106,703              93
30 Sep 1995    324        12,198            107,994              93
31 Dec 1995    334        12,836            111,949              94
31 Mar 1996    335        13,936            114,239              96
30 Jun 1996    338        14,794            l15,l53             100
30 Sep 1996    335        14,643            112,122             100

NOTES:    Class A schemes are those which meet the Commission's Collective 
Investment Scheme Rules 1988 and are thereby eligible for recognition by the
UK Securities and investments Board for sale to the public in the United
Kingdom by virtue of Guernsey's designation under Section 87 of the Financial
Services Act 1986.

Class B schemes are also authorised under the Protection of investors Law
1987, and are subject to the Collective Investment Schemes (Class 3) Pules 1990.

OEIC - open-ended investment companies
UT - unit trusts

For further information contact Peter Crook on Tel: +44 (0) 1481 712 706 or fax: +44 (0) 1481 712 010 or e-mail: info@gfsc.guernseyci.com

Visit the Guernsey Financial Services Commission Web Site at Click Contact Link

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.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

 
In association with
Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions