The value of Guernsey funds under management has shown a strong increase since the 1996 year end figures were published. The total value of funds under management at 31 March 1997 amounted to a record £15.4 billion, up 15% from the previous quarter.
In the open-ended sector', the net asset value of funds ("NAV") at the end of March was £10.3 billion, an increase of 14.6% from the previous quarter. There were 13 new funds authorised during this period, one of which was the first umbrella fund to take advantage of the Protected Cell Company ("PCC") Ordinance which came into force on I February 1997, although the high number of suspensions (at their managers' request) had the net effect of reducing the total number of authorised funds to 169. However, the open-ended sector remains buoyant with record sales of £ 1.5 billion during the first quarter. Net new investment totalled £751 million - another record - and there was an increase of nearly 4% in the number of registered unit/share holders. Seven fund promoters/sponsors not previously represented in Guernsey have launched a Guernsey authorised fund during the period.
The closed-ended sector was equally buoyant in the first quarter of the year. The value of funds under management increased by 15.6% to a total of £5.1 billion. Eight new funds were granted consent, bringing the total number of closed-ended funds to 169 and there were four promoters/sponsors not previously represented in Guernsey.
There are currently 37 funds in the pipeline of which 13 are open-ended and 24 are closed-ended. In the open-ended sector the types of funds are evenly divided between emerging markets, fund of funds, hedge funds and securities funds; there is one further proposed PCC securities fund. In the closed-ended sector there are 3 limited partnerships, 5 venture capital funds, several property funds and an Islamic fund amongst others. In terms of trends, the spread of fund types is quite wide but emerging market funds and hedge funds in both sectors are of particular interest amongst promoters and investors alike.
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.
For further information contact Peter Crook on Tel: +44 (0) 1481 712706
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