Guernsey Fund Sector Shows Steady 2002 Performance Says FSC

by Jason Gorringe, Tax-News.com, London

19 May 2003

Figures released by the investment business division of the Guernsey Financial Services Commission show that the island's fund industry performed steadily last year despite the global economic downturn.

Speaking to the Guernsey Press and Star, the investment business division's director, Peter Moffat acknowledged that the number of new fund businesses was substantially lower than in 2000 and 2001, but an increase in applications in the final quarter of 2002 continued into the first quarter of this year. This can be taken as an encouraging sign, Moffat told the GP.

However, Mr Moffat tempered his optimism by warning that the immediate outlook was still somewhat uncertain, and there is little prospect of an upturn in the market in the near future.

FSC figures show that total funds under management recovered by some 3.3% to end the year at GB£33 billion, broadly the level achieved at the end of 2001. Within that total, open-ended funds increased by 4.8% to GB£15.9 billion while closed-ended funds increased by 1.9% to reach GB£17.1 billion at year end. The total number of closed-end investment companies domiciled in Guernsey increased from 311 to 319 during the course of the year. The open-ended sector also showed some resurgence, particularly toward the end of the year. The total number of investment pools rose from 578 at end of December 2001 to 619 at end of December 2002.

The FSC's investment business division also introduced a slimmed-down the authorisation process for new funds. Training sessions were introduced to ease the transition, which are likely to repeated this year, according to Moffat.

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