The results of Coopers & Lybrand's fourth survey of Guernsey fund managers confirms that Guernsey's offshore funds business continues to flourish despite increased competition from other jurisdictions.
As at 31st December 1996 the total value of Guernsey's 176 open-ended and 161 closed-ended funds stood at $22.8B, an increase of 14.57% on 1995's figure of $19.9B.
Key extracts from Coopers & Lybrand's fourth survey follow:
Whilst fund groups view 1997 with optimism, they are conscious of the increasing number of other jurisdictions competing for fund business.
Guernsey is well placed to compete for new business, as Guernsey has high regulatory standards and in addition has developed a high level of expertise over the last 30 years.
The regulators and the industry must continue to work together to develop new products and to ensure the right level of regulations, whilst at the same time ensuring the level of regulation in Guernsey is internationally recognised.
The Guernsey Financial Services Commission's successes to date in negotiating agreements with Australia, Hong Kong, Japan, the Netherlands, the Republic of Ireland, Switzerland and the UK allowing Guemsey "A" schemes to be marketed into these countries must be continued to be built on.
Fund groups intend to continue to invest in training and IT to increase efficiency and obtain the optimum use of resources.
Operating costs must be kept in check.
The closed ended/institutional sector continues to grow in importance, with an increasing number of vehicles investing in Emerging Markets, Russia, India, Vietnam and such like.
Switzerland, the Far East and Europe,, inclusive of the UK, are regarded as providing the greatest marketing opportunities in 1997.
Despite many equity markets reaching new highs, virtually daily the majority of fund groups predict equity investments will be more popular than fixed interest or balanced funds.
To conclude, members of the Guernsey Fund Managers Association are of the opinion that they are well placed to develop and expand their businesses in 1997 and are in a position to offer services, products and expertise within a well regulated environment to investors and financial intermediaries throughout the world; an enviable position that few other offshore centres can enjoy.
For further information contact Peter Crook on Tel: +44 (0) 1481 712 706 or fax: +44 (0) 1481 712 010 or e-mail: firstname.lastname@example.org
Visit the Guernsey Financial Services Commission Web Site at Click Contact Link
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