The total value of funds business in Guernsey grew by £8.7
billion (3.3%) during the first quarter of the year.
New figures from the Guernsey Financial Services Commission (GFSC)
show that the first quarter growth follows a drop of just more than
£10 billion in the final quarter of last year and has taken
the total net asset value of funds under management and
administration in the Island to £270.1 billion at the end of
This represents growth of £6.4 billion (2.4%) year on
Fiona Le Poidevin, Deputy Chief Executive of Guernsey Finance
– the promotional agency for the Island's finance
industry, said: "It is very pleasing to see that the
depreciation in the value of our funds business during the final
quarter of last year was almost completely recovered during the
first three months of 2012. Looking at the figures, we can see that
there was an increase in fund values across the board but the vast
majority of the growth can be attributed to a number of
closed-ended and non-Guernsey schemes launching during the
"What I am hearing from the funds sector is that much of
this business is coming from managers who have used Guernsey in the
past and are providing repeat business. This demonstrates
confidence in Guernsey as a jurisdiction and in particular, the
experience and expertise of our service providers. The fact that it
also comes in the face of generally gloomy economic conditions is
very positive but we must also be conscious that external events,
such as developments in the Eurozone, will continue to have an
impact on our business."
The new figures from the GFSC show that Guernsey domiciled
open-ended funds reached a net asset value of £55.8 billion
at the end of March 2012, which was an increase of £0.5
billion (0.9%) during the quarter but down £1.8 billion
(3.1%) year on year.
The Guernsey closed-ended sector was valued at £123.9
billion at the end of March – up £4.8 billion (4%)
during the first three months of 2012 and up £9.1 billion
(7.9%) compared to twelve months earlier.
Non-Guernsey schemes, where some aspect of management,
administration or custody is carried out in the Island, grew by
£3.4 billion (3.9%) during the quarter to reach £90.4
billion at the end of March 2012, which is £0.8 billion
(0.9%) lower than the value at the end of March 2011.
Horace Camp, the new Chairman of the Guernsey Investment
Fund Association (GIFA), said: "It is encouraging to see
this growth in the value of Guernsey funds business during the
first quarter of the year. The fact that this is largely the result
of new business coming to the Island is a major vote of confidence
in the standards of our fund administrators, custodians and support
services. The general economic malaise, particularly in the
Eurozone, does mean that we need to be cautious but this has been a
promising start to the year."
The total gross asset value of all Guernsey and non-Guernsey
schemes increased by £16.2 billion (5.3%) during the first
quarter and £27.5 billion (9.4%) year on year to reach
£319.9 billion at the end of March 2012.
Within the asset management and stockbroking sector, 104
respondents confirmed gross assets under management of £87.7
billion at the end of March 2012. This is a rise of £0.4
billion (0.4%) during the quarter and £9.3 billion (11.8%)
during the previous twelve months.
The Miami-based Offshore Alert Conference has become a regular draw for representatives of Cayman’s financial services industry in recent years, and this year’s event is no exception with the Cayman Islands lending strong support through the provision of speakers from both the financial services industry and Government’s Ministry for Financial Services.
The Organisation for Economic Co-operation and Development recently published a report in which the Cayman Islands was commended for the "streamlined, efficient and responsive procedures it has is in place to facilitate the exchange of information for tax purposes".
On 1st April the new UK "Twin Peaks" regulatory regime was launched. The much criticised FSA was replaced with the Financial Conduct Authority ("FCA") and the Prudential Regulatory Authority ("PRA"). Martin Wheatley, the FCA’s chief executive has publicly criticised the approach of the former FSA as "robotic" and a more challenging UK regulatory climate is widely anticipated.
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