Guernsey Funds Reach New High

by Jason Gorringe, Tax-News.com, London

20 August 2007

Funds under management and administration in Guernsey grew by GBP15.2 billion (10.8%) over the quarter ended 30 June 2007 to reach a new high of GBP155.6 billion, the Guernsey Financial Services Commission has announced. For the year since 30 June 2006, values increased by GBP32.3 billion, an increase of 34.8%.

Within these totals, the closed-ended fund sector saw continued growth, with increases of GBP5.9 billion (10.6%) over the quarter and GBP23.7 billion (61.3%) over the year since 30 June 2006, to reach GBP62.4 billion. Guernsey domiciled open-ended funds grew by GBP3.9 billion (6.6%) over the quarter, and by GBP8.6 billion (15.9%) over the year since 30 June 2006, to reach a total of GBP62.6 billion.

Non-Guernsey schemes, for which some aspect of management or administration is carried out in the Bailiwick, saw significant growth and increased by GBP5.4 billion (21.2%) over the quarter and by GBP8.5 billion (38.2%) over the year, to reach a record high of GBP30.7 billion.

In the year to 30 June, a total of 35 Qualifying Investor Funds were approved. Since the inception of the QIF regime in February 2005, a total of 123 QIF vehicles have received consent or approval. On 1 February 2007, a Registered Closed Fund regime was introduced. By 30 June, a total of 37 Registered Closed-ended Investment Funds had received consent since the launch of the regime. Since 30 June, a further 10 Registered Closed-ended Investment Funds have received consent under this regime.

Peter Moffatt, Director of Investment Business at the Guernsey Financial Services Commission, stated that:

“These figures are evidence of continuing confidence in the Guernsey investment fund sector. We recognise, of course, that market conditions have changed radically since they were collated."

"As the figures show, the Qualifying Investor Fund Regime introduced in February 2005 continues to be popular. Following its success in the first quarter the Registered Closed-ended Investment Fund Regime, introduced in February 2007, has continued through the second quarter to be extensively used by local fund administrators to service the needs of their clients.”

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