Guernsey FSC Reports Impressive Growth In Funds Under Management

by Jason Gorringe, Tax-News.com, London

10 February 2005

Total investment funds under management and administration in Guernsey increased by £4.5 billion over the course of the fourth quarter of 2004, representing quarterly growth of 6.5% and annual growth of 30.6% over the calendar year, the Guernsey Financial Services Authority has reported.

According to the GFSC, open-ended funds grew in value by £2.1 billion or 6.7% over the quarter to a total of £33.7 billion which represented 52% growth over the calendar year. Closed-end funds also performed well, growing by £1.4 billion or 6.5% to £22.9 billion over the quarter and 16.8% growth over the calendar year.

In total, Guernsey domiciled funds grew by £3.5 billion to a total of £56.6 billion, a 6.6% increase during the last quarter and 35.5% growth over last year. In addition, non-Guernsey open-ended funds for which some aspect of custody, management or administration is conducted in the jurisdiction increased by £1 billion to £17 billion, an increase of 6.2% over the quarter and 16.6% over the year.

The Commission reported that new investment funds were the main contributor to these growth figures with a total of 36 new open-ended investment vehicles authorised during 2004, compared with 26 in 2003.

Furthermore, 139 new portfolios for existing PCC and umbrella fund structures were authorised during the year, up from 108 in 2003 and bringing the total of new open-end structures authorised last year to 175, which compares to a figure of 134 in the previous year.

In the closed-end sector, 46 new investment vehicles received COBO consent during 2004, up from 33 in 2003, along with 11 new cells of existing closed-end structures, compared to 3 in 2003. Non-Guernsey scheme approvals were slightly down on the year at 42, down from 66 the previous year.

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