FOR IMMEDIATE USE

Collective investment funds under management in Guernsey made an impressive leap in the second quarter of 1996 reaching an all time high of £14.8 billion, up £858 million (6.2%) from the previous quarter.

The most significant increase was in authorised open-ended schemes where total net asset value rose by £661 million to a record level of £9.8 billion, up 7.3% from the previous quarter. Eight new open-ended funds were authorised, one of which saw the introduction of a new Swiss promoter for a derivatives fund aimed at professional and institutional investors. There was a net increase of five new funds in the quarter owing to three suspensions of existing funds (at their managers' request). As with the previous quarter, net new investment was again very positive at £3 56 million continuing the trend of strong investor interest in open-ended schemes noted at the beginning of the year, particularly emerging market funds.

Of the 194 authorised open-ended schemes 45 are "retail funds" which may be marketed to the public in seven countries: Australia, Hong Kong, Japan, the Netherlands, Republic of Ireland, Switzerland and the UK. The number of umbrella funds has increased by two and there was a large increase in the number of sub-classes from 412 in the previous quarter to 456. (In some statistical analyses the umbrella classes are counted as separate schemes which, in Guernsey's case, would bring the total number of authorised open-ended schemes to 577).

Closed-ended funds also increased in value by 4. 1 % with assets under management up by £ 1 97 million from the previous quarter to a new high of £5 billion. As with the open-ended sector, the second quarter saw a new promoter for a Guernsey fund - a US based investment group which launched an Egyptian closed-ended fund. There were a further three new funds granted consent in the quarter, although the actual total number of closed-ended funds has decreased by two as a result of liquidations and the decision of two funds to change their status to become authorised open-ended schemes.

Currently there are 29 new funds in the pipeline of which 16 are closed-ended and 13 are open-ended schemes. Two of the new funds are proposing to emigrate from another European jurisdiction to Guernsey and there is a good mix of products, including venture capital and emerging market funds.

An Appendix which summarises and analyses the returns is attached.

Enquiries to:
Nigel Taylor, Superintendent of Investment Business
Tammy Menteshvlli, Deputy Superintendent of Investment Business
Tel: (01481) 712706

1. OPEN-ENDED SCHEMES

At       Number of Authorised     Value of Schemes      Number of Registered 
               Schemes                 (£mn)                  Holders 

31 Dec 1989        123                2,563                   60,054
31 Dec 1990        156                3,069                   67,767
31 Dec 1991        153                4,297                   61,524
31 Dec 1992        158                5,462                   68,721
31 Mar 1993        169                5,957                   80,264
30 Jun 1993        174                6,166                   82,702
30 Sep 1993        185                7,217                   84,839
31 Dec 1993        194                8,310                   88,721
31 Mar 1994        186                8,630                   92,070
30 Jun 1994        194                8,358                   90,442
30 Sep 1994        199                8,350                   95,473
31 Dec 1994        201                7,879                   93,660
31 Mar 1995        198                7,441                   92,924
30 Jun 1995        198                8,010                   98,536
30 Sep 1995        200                8,142                  100,447
31 Dec 1995        194                8,389                  103,853
31 Mar 1996        189                9,108                  105,847
30 Jun 1996        194                9,769                  106,716

During quarter       Sales         Repurchases        Net Investment
    ended            (£mn)            (£mn)               (£mn)

31 Dec 1989           512              26O                 252
31 Dec 1990           409              183                 226
31 Dec 1991           619              263                 356
31 Dec 1992           693              692                   1
31 Mar 1993           915              801                 114
30 Jun 1993           862              817                  45
30 Sep 1993         1,124              706                 418
31 Dec 1993         1,251              592                 659
31 Mar 1994         1,404              975                 429
30 Jun 1994           770              691                  79
30 Sep 1994           652              700                 (48)
31 Dec 1994           508              725                (217)
31 Mar 1995           499              619                (120)
30 Jun  1995          824              609                 215
30 Sep 1995           622              579                  43
31 Dec 1995           761              715                  46
31 Mar 1996         1,116              785                 331
30 Jun 1996         1,058              702                 356

ANALYSIS BY TYPE, CLASS, ETC AT 30 JUNE 1996

Type                     Total  Class A  Class B  OEIC  UT   Stock-Exchange
                                                                 Listed

Securities Scheme          86      20      66      53   33         30
Umbrella Funds             73*     17      56      49   24         16
Govt & other Public Funds  13       5       8       6    7          1
Funds of Funds              6       1       5       6    -          -
Futures & Option Funds      3       -       3       3    -          2
Money Market Funds          3       1       2       2    1          -
Feeder Funds                3       1       2       2    1          1
Other                       7       -       7       3    4          2

   TOTAL                  194      45     149     124   70         52

* COMPRISING 456 SUB-FUNDS.

Class A schemes are those which meet the Commission's Collective Investment Scheme Rules 1988 and are therby eligible for recognition by the UK Securities and Investment Board for sale to the public in the United Kingdom by virtue of Guernsey's designation under Section 87 of the Financial Services Act 1986

Class B schemes are also authorised under the Protection of Investors Law 1987, and are subject to the Collective Investment Scheme (Class B) Rules 1990.

OEIC - Open-Ended Investment Companies

UT - Unit Trusts


CLOSED-ENDED SCHEMES

At          Number of    Value of      Number of   Stock-Exchange
             Schemes   Schemes (£mn)   Registered      Listed
                                        Holders

31 Dec 1990    55          1,341         5,690           N/A
31 Dec 1991    68          2,111         6,069            27
31 Dec 1992    78          2,829         6,221            31
31 Mar 1993    79          2,824         6,455            31
30 Jun 1993    80          3,047         7,106            32
30 Sep 1993    84          3,149         5,916            32
31 Dec 1993    86          3,763         5,972            33
31 Mar 1994    89          3,643         6,332            35
30 Jun 1994    96          3,620         6,479            36
30 Sep 1994   101          3,574         6,773            36
31 Dec 1994   107          3,596         6,992            38
31 Mar 1995   113          3,225         7,760            39
30 Jun 1995   120          3,908         8,167            42
30 Sep 1995   124          4,056         7,547            42
31 Dec 1995   140          4,447         8,096            43
31 Mar 1996   146          4,828         8,392            45
30 Jun 1996   144          5,025         8,437            48

3.   TOTAL FUNDS UNDER MANAGEMENT

At          Number of    Value of      Number of   Stock-Exchange
             Schemes   Schemes (£mn)   Registered      Listed
                                        Holders

31 Dec 1990   211          4,410        73,457           N/A
31 Dec 1991   221          6,408        67,593            59
31 Dec 1992   236          8,291        74,942            64
31 Mar 1993   248          8,781        86,719            65
30 Jun 1993   254          9,213        89,808            66
30 Sep 1993   269         10,366        90,755            68
31 Dec 1993   280         12,073        94,693            72
31 Mar 1994   275         12,273        98,402            78
30 Jun 1994   290         11,978        96,921            82
30 Sep 1994   300         11,924       102,246            84
31 Dec 1994   308         11,475       100,652            90
31 Mar 1995   311         10,666       100,684            90
30 Jun 1995   318         11,918       106,703            93
30 Sep 1995   324         12,198       107,994            93
31 Dec 1995   334         12,836       111,949            94
31 Mar 1996   335         13,936       114,239            96
30 Jun 1996   338         14,794       115,153           100
NEW E-MAIL AND INTERNET ADDRESS

Please note: The Financial Services Commission has a new E-mail address which is info@gfsc.guernsey.net and its information site on the Internet can now be located on http://gfsc.guernsey.net

However, http://www.itl.net/go/to/GuernseyFSC will remain active for the foreseeable future.

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 712 706 or fax: +44 (0) 1481 712 010.
Visit the Guernsey Financial Services Commission Web Site at Click Contact Link