Guernsey Fund Assets Near GBP100 Billion Mark

by Jason Gorringe, Tax-News.com, London

15 November 2005

Funds under management and administration in Guernsey grew by GBP6.7 billion (US$11.6 billion) over the quarter ended 30 September 2005 to reach a total of £91.7 billion, representing growth of 9.1% over the quarter.

Over the year to September 2005, the total value of funds grew by over GBP22 billion, an increase of 32.7%, the Guernsey Financial Services Commission reported in its Third Quarter Investment Statistics report.

Within that total, open-ended funds again showed the strongest growth, increasing in value over the quarter by GBP2.8 billion to GBP44.4 billion, an increase of 6.9%. Compared with 30 September 2004 open-ended funds increased in value by over GBP12 billion (40.5%). Closed-end funds similarly increased in value by GBP2.6 billion, an increase of 10.6% over the quarter. Over the year to 30 September they increased by GBP5 billion (29.9%).

Non-Guernsey schemes for which some aspect of management or administration is conducted in the Bailiwick grew further, by GBP2.1 billion (12.4%) to reach a new record total of GBP19.5 billion. Over the year to 30 September, this sector saw growth of GBP3.4 billion (21.4%).

Meanwhile, the Qualifying Investor Fund regime continues to show its attraction. A total of 12 QIF funds (six closed-end, six open-ended) had been authorised or received consent by 30 June. By 30 September, that number had increased to 20, comprising nine open-ended funds, 10 closed-end funds, and one non-Guernsey scheme.

According to Peter Niven, chief executive of Guernsey Finance, the government's investment promotion agency, Guernsey is well on the way to having GBP100 billion worth of funds under management and administration by the end of the year.

“Guernsey’s tremendous fund success is not just anecdotal, it is proven quarter-on-quarter by this incredible growth,” Mr Niven observed.

He continued:

“Our established position as jurisdiction of choice for fund promoters is down to the expertise being provided by Guernsey’s fund managers, administrators and other fund professionals, as well as our flexible and innovative regulatory framework.

“A significant amount of the growth over the last two quarters can be attributed to the 20 Qualifying Investor Funds that have been authorised over the last eight months. Guernsey Finance and Guernsey Investment Funds Association (GIFA) members are continuing to communicate strong messages about QIFs into the market and there is every reason to expect that these levels of success will continue.”

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