Guernsey Sees Surge Of New Fund Applications

by Jason Gorringe, Tax-News.com, London

04 June 2003

The investment business sector of the Guernsey Financial Services Commission (FSC) has reported a surge in new fund applications over the last few months, according to a report in the Guernsey Press and Star this week.

Figures have revealed that from the beginning of 2003, the island has seen the registration of four additional open-ended funds, five closed-end funds, and fifty-one sub-funds consisting of both umbrella and multi-class strategy formats.

"In the last few weeks possibly it’s been quieter, but from October to Easter we were under very significant pressure, to the extent that we had to rearrange staffing resources to maintain service levels," director of investment business at the FSC, Peter Moffatt, remarked to the Press and Star.

Moffatt said that the last six months in particular had seen a very "substantial" flow of funds into the jurisdiction, an indication, he said, that many investors feel that the worst of the bear market is over. He also observed that it gave a great boost to Guernsey's reputation in the international finance community, particularly at a time when investor confidence is still somewhat fragile.

"It does appear that some people think markets may not be at the bottom but are unlikely to fall much from now," said Moffatt, adding: "Against a background of weakness in the markets, this shows that people think Guernsey is a good place to do business."

According to the Press and Star report, the total value of closed-end funds in Guernsey reached an all time peak of £34.2 billion by the end of March, up 3.7% from the end of 2002.

Recommended