Guernsey's financial services regulator approved 33 new
investment funds during the third quarter of 2013.
Figures released today by the Guernsey Financial Services Commission (GFSC)
show that it approved five open-ended funds, 19 closed-ended funds
and nine non-Guernsey schemes* between the start of June and the
end of September this year.
Taking into account licences rescinded, there was net growth of
17 funds during the period.
However, the net asset value of funds under management and
administration fell by £19 billion (6.6%) to £267
billion at the end of September. That represents a decline of
£7.4 billion (2.7%) year on year.
This was partly due to the pound strengthening against the US
Dollar and Euro, which had a large negative effect on fund values
when expressed in Sterling terms, but also a result of general
financial conditions, where concerns around emerging economies
impacted both equity and bond markets in the third quarter.
Fiona Le Poidevin, Chief Executive of Guernsey Finance - the
promotional agency for the Island's finance industry, said:
"It is disappointing to see the value of our funds business
decline during the third quarter, but it is of some comfort to know
that this was largely a result of external factors including
exchange rates and general market sentiment.
"Indeed, the fact that we have seen 33 new funds approved
during the third quarter - and net growth of 17 funds - shows that
managers and investors remain attracted to what Guernsey has to
offer. This is a major vote of confidence at a time when there is
so much uncertainty, not least as a result of the Alternative
Investment Fund Managers Directive (AIFMD)."
At the start of this month,
Guernsey revealed its opt-in AIFMD equivalent regime which will
come into effect from 2 January 2014. This is the second strand of
a 'dual regime' where the other parallel regime is the
existing regulatory framework for managers and investors not
requiring an AIFMD fund, including those using EU national private
placement regimes and those marketing to non-EU investors.
Miss Le Poidevin said: "Guernsey has clearly and
consistently articulated its plans to adopt a 'dual regime'
in response to AIFMD so that we can best serve the needs of our
global client base. We have worked hard to ensure that we have put
the right pieces of the jigsaw in place at the right time and while
it is still very much early days in terms of the implementation of
AIFMD, it is very pleasing to see such strong growth in the number
of funds being licensed in Guernsey.
"We can see that Guernsey closed-ended funds remain very
popular and especially for alternative investments, such as
renewable energy, where there were two notable London listings in
the third quarter. This also corroborates anecdotal evidence from
industry practitioners who are reporting a busy end to the year.
This bodes very well for the Guernsey funds industry in
Other figures from the GFSC show that the value of deposits held
by banks in Guernsey fell by £5.6 billion (6.3%) during the
third quarter to reach £84.1 billion at the end of September,
representing a decline of £12.8 billion (13.3%) year on
The total number of international insurance entities licensed in
Guernsey reached 778 at the end of September, which is a rise of 12
during the quarter and up 32 year on year. The GFSC approved 79 new
licences during the twelve months to the end of September 2013.
* Non-Guernsey schemes are open-ended funds which are not
domiciled in Guernsey but where some aspect of management,
administration or custody is carried out in Guernsey.
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