Guernsey Releases Q3 Investment Statistics

by Phillip Morton, Investors Offshore.com

07 November 2008

Despite a fall in fund assets administered and managed in Guernsey, the latest figures demonstrate the robustness of Guernsey’s investment fund sector, according to the jurisdiction’s Financial Services Commission.

The report shows total funds under management and administration fell by GBP5.8bn (2.8%) over the quarter to the end of September to GBP201.4bn. For the year since September 30, 2007, values increased by GBP36.9bn, or 22.4%.

Within these totals, Guernsey domiciled open-ended funds fell by GBP8bn (10.8%) over the quarter to GBP65.7bn. This represents an increase of GBP0.7bn (1.1%) over the year since September 30, 2007. This decrease in value over the quarter results mainly from the adverse performance of global markets during the third quarter of 2008. In addition, a fund that was previously established in Guernsey and included in the June open-ended fund statistics, migrated to another jurisdiction after the completion of the last statistical summary. Administration functions for that fund are still carried on from Guernsey; the relevant fund’s figures are therefore reflected in the non-Guernsey schemes figures.

The closed-end fund sector saw growth, with increases of GBP1.1bn (1.3%) over the quarter and GBP18.3bn (27.1%) over the year since September 30, 2007, to reach GBP85.9bn, a new record. Some elements of the closed-end fund sector, such as private equity funds which are subject to directors’ valuations of fund investments, may be more insulated from market falls, the FSC said.

Non-Guernsey schemes, for which some aspect of management or administration is carried out in the Bailiwick, saw increases of GBP1.1bn (2.1%) over the quarter to leave their value at GBP49.8bn. This figure is an increase of GBP17.9bn (56.1%) over the year since September 30, 2007. As noted above, a scheme that had previously been authorised in Guernsey migrated from the jurisdiction since the completion of the last statistical summary and is now reflected in the non-Guernsey schemes’ figures. Taking that migration into account the value of ongoing non-Guernsey schemes, that is those reflected on a like for like basis in June and September, fell which results mainly from the ongoing adverse performance of the global hedge fund sector during the third quarter of 2008, the FSC reported.

In the quarter ended September 30, 2008, five qualifying investor funds (QIFs) were approved and a further 12 registered closed-end investment funds received consent. A total of 210 QIF vehicles have received consent or approval and 126 registered closed-ended investment funds have received consent under that regime.

Peter Moffatt, Director of Investment Business at the FSC, said:

“Despite the volatility of global markets and the pressures faced by investment funds in many jurisdictions these figures demonstrate the robustness of Guernsey’s investment fund sector”.

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