Guernsey Funds Still Showing Strong Growth

by Philip Morton, Investors Offshore.com

13 September 2006

According to figures published on Monday by the Guernsey Financial Services Commission, funds under management and administration on the Island grew by GBP3.4 billion (3%) over the quarter ended 30 June 2006, to reach a total of GBP114.8 billion.

For the year since 30 June 2005, values increased by GBP30.7 billion, an increase of 36.5%.

Within these totals, Guernsey-domiciled open-ended funds grew by GBP479 million (0.9%) over the quarter and by GBP12.4 billion (30%) over the year since 30 June 2005 to reach a new record total of GBP53.9 billion.

Closed-end funds also grew, with increases of GBP4.8 billion (14.2%) over the quarter and GBP13.4 billion (53.5%) over the year since 30 June 2005, to reach GBP38.6 billion, also a new record.

The value of non-Guernsey schemes for which some aspect of management or administration is conducted in the Bailiwick fell during the quarter by some GBP1.8 billion (7.6%) to GBP22.2 billion. This decrease resulted from the impact of market movements on hedge funds during the quarter. Since 30 June 2005 the value of non-Guernsey schemes has risen by 28%.

By the end of June 2006, a total of 58 Qualifying Investor Funds had been approved since launch of the scheme on 7 February 2005.

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

“New fund approvals continue to run at record levels and there is a continuing flow of inquiries, both from those with an established track record of domiciling their international funds in Guernsey and promoters new to the jurisdiction."

"Demand from promoters to establish their funds in Guernsey, attracted by the quality of Guernsey’s service providers and the recognition for pragmatic regulation has continued to increase significantly."

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