Investment fund values in Guernsey showing steady rise as confidence returns following the economic downturn, newly published figures show

News - Funds

Written by Ray Clancy

Friday, 28 May 2010 07:30

The value of investment funds in Guernsey increased by 7.2% to £ 3.2 billion in the first three months of this year giving rising to growing confidence in the sector.

The figures represent the third successive quarter of growth and takes the total value of funds business in the Island to £197.4 billion at the end of March 2010, a 12.2% year on year rise of £21.5 billion.

‘We can continue to be cautiously optimistic about our funds industry. Global economic conditions remain fragile and will be for some time to come so we cannot afford to be complacent but it is encouraging that our funds sector has grown for the third consecutive quarter. This reflects the way in which confidence is gradually returning to the markets and consequently local firms are seeing a growth in business flows,’ said Peter Niven, Chief Executive of Guernsey Finance.

‘Our funds industry is proving robust throughout these challenging times and this quarter of growth at the start of the year strikes a further positive note. It is another step down a long road to recovery that I can see continuing slowly but surely through 2010,’ he added.

Guernsey domiciled open-ended funds reached a net asset value of £56.1 billon at the end of March, which was a rise of 10.7% or £5.4 billion during the quarter and an increase of £3.6 billion, 6.9%, year on year.

The Guernsey closed-ended sector was valued at £92.3 billion by the end of March, up £6.9 billion, 8.1%, during the first three months of 2010 and rose £9.8 billion, 11.9%, compared to twelve months ago.

Non-Guernsey schemes, where some aspect of management, administration or custody is carried out in the Island, increased by £900 million, 1.7%, during the first quarter to reach £49 billion, which is £8.1 billion, 19.8%, higher than the value at the end of March 2009.

The figures issued also show that the gross asset value of all Guernsey funds reached £226.2 billion at the end of March, a rise of £5.5 billion, 2.4%, from the end of last year, which was the third quarter for reporting gross figures.

Within the investment management and stockbroking sector, 85 respondents confirmed gross assets under management of £50.9 billion, a rise of £3.8 billion, 8%, during the quarter.