Guernsey funds see asset growth

Date: Monday, December 7, 2009
Author: HedgeFunds Review

The value of investment funds managed and administered in Guernsey grew by 7% in the third quarter of 2009, bringing the total net asset value (NAV) of funds in the island to £181.5 billion.

Guernsey-domiciled closed and open-ended funds saw NAV rise to £132.6 billion during the third quarter, an increase of 6.4% compared to the end of June. However assets have dropped by 12.6% compared with the third quarter of 2008.

We are starting to see confidence return to the markets. There is a growing feeling that asset values have bottomed and that now is the time to invest for the future through an increasing number of new vehicles.

There are now 284 open-ended investment schemes domiciled in the bailiwick, including 26 hedge funds and 82 funds of hedge funds (FoHF) with a total NAV of £51.5 billion.

Over 600 closed-end funds were domiciled in Guernsey at September 30, a decrease of five from the previous quarter. Closed-end NAV rose by almost 10% to £81.1 billion in the same period.

There are 10 closed-end hedge funds and 26 closed-end FoHFs now domiciled in Guernsey.

Funds domiciled outside Guernsey, but with some aspect of management, administration or custody carried out in the island, recorded a NAV of £49 billion as of September 30 - up 8.6% compared to the previous quarter and less than £1 billion behind the same period in 2008.

These funds included 48 hedge funds and 121 FoHFs, over half of the 335 non-Guernsey domiciled funds carrying out activity in the bailiwick.

The figures, released by the Guernsey Financial Services Commission (GFSC), also showed the gross asset value of all funds rose by 7.5% or £15.2 billion in the third quarter to £217.5 billion.

Peter Niven, chief executive of promotional agency Guernsey Finance, said: "It is still early days but hopefully we are starting to see confidence return to the markets. There is a growing feeling that asset values have bottomed and that now is the time to invest for the future through an increasing number of new vehicles."

The GFSC also gathered information from the island's investment management and stockbroking sector for the first time. A total of 75 respondents confirmed gross assets under management of £49.5 billion.