A total of 23 new funds were approved during the first quarter of 1998 (compared to 21 over the same period last year) with the total number of Guernsey funds under management at 31 March reaching a record high of 383. The total value of funds under management at 31 March 1998 increased by £134 million to £16.7 billion and the total number of investors reached a new high of 128,989.
In the open-ended sector (see endnote 1) the net asset value ("NAV") of Guernsey authorised funds increased by 3% over the quarter to a total value of £11.6 billion. The number of authorised funds increased by a net 6 of which 4 were protected cell companies (see endnote 2), while the number of active investment pools rose by a net 12 to 517. During the quarter 3 fund sponsors (from Switzerland, South Africa and the United Kingdom) not previously represented on the Island launched a Guernsey authorised open-ended fund.
The number of funds in the closed-ended sector (see endnote 3) increased by a net 5 to a record total of 197, however the value of funds under management fell by some 4% to £5 billion over the quarter, largely due to the maturity of 5 closed-ended funds. A further 14 closed-ended funds are in the pipeline, with emphasis on property funds, hedge funds and emerging markets.
There is continued growth in the provision of services from Guernsey for non-Guernsey schemes. During the first quarter approval was given to various Guernsey institutions licensed under the Protection of Investors (Bailiwick of Guernsey) Law to provide either management, administration or custodial services to 5 new non-Guernsey schemes. The total value of such funds reached a record £5.2 billion.
The attached report summarises and analyses the statistical returns.
1) Open-ended schemes are funds which are offered for sale throughout the life of the fund and without limitation on the shares/units which investors are entitled to redeem on demand subject to any applicable notice period.
2) Protected Cell Companies (PCCs) are special purpose vehicles providing legal segregation of the assets of each cell (class in the context of an umbrella or multi-class fund) which avoids risk of contagion between cells by protecting the assets of each cell from the liabilities of other cells.
3) Closed-ended schemes normally have a fixed capital issued once and for all and investors have no absolute entitlement to redeem their shares/units.
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.
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