Second Quarter 2009 Investment Statistics

18th September 2009


In the recent period, the Guernsey Financial Services Commission and the investment sector have been consulting on improving the statistics available in respect of investment funds. This is the first report in the new format, giving values for gross assets and well as net assets (and so allowing a feel for the average level of gearing being undertaken by investment funds) and also providing a more helpful categorisation by investment style and by direction of investment. To an extent, therefore, the statistics now published are not entirely consistent with earlier reports, although every effort has been made to ensure that the main features of the analysis remain consistent.
Net asset values showed a further decline over the quarter, reflecting in the closed-ended sector’s continuing reappraisal of values in real property and private equity funds. The differing impacts on the open-ended and closed-ended sector are highlighted by the fall in NAVs of open-ended funds (3.5% on the quarter but a fall of 31.3% compared with a year ago, with falls in closed-ended fund NAVs of 10.4% on the quarter and 12.8% for the year to 30 June). Overall the total NAVs of Guernsey domiciled open and closed-ended funds fell by 7.7% in the quarter and 21.4% year on year. By contrast the NAVs of non-Guernsey domiciled schemes increased by some £4 billion (10.2%) to end the period 7.6% below the levels recorded in 30 June 2008. Overall, Asset Values, at £170 billion as at 30 June 2009 were 3.5% below the level at 31 March and 18% below levels recorded on 30 June 2008.
For the first time we are publishing data on gross asset values. It is felt that this information will be helpful to the public and the industry, as well as to the regulator, in providing a measure of the gross value of assets being managed in the Bailiwick – from which that revenue is derived – as well as giving some measure of the gearing inherent in Guernsey domiciled funds. The gross asset value of Guernsey domiciled open-ended schemes as at 30 June was £57 billion, implying an average gearing level of some 13%. In the closed-ended sector, as may be expected, the gearing levels are higher, gross asset values of some £97 billion implying an average gearing level of just under 1/3rd. Gearing implicit in non-Guernsey open-ended schemes, at around 6%, based on gross asset values of some £48 billion, appears modest.
A more detailed analysis of geographical distribution is also included in the tables for the first time. It is hoped that going forward, this information will allow the identification of significant trends; for the moment it is probably only worth noting that the predominance of Guernsey in the open-ended sector represents Guernsey feeder and fund of fund schemes where the top level investment is invested through another Guernsey vehicle – it does not represent investment by funds in industrial and commercial enterprises in Guernsey.
Peter Moffatt, Director of Investment Business said “these figures show, as expected, that Guernsey is not immune from the pressure on asset values which has been experienced world
wide. We hope that the publication of more comprehensive data will help to put those developments in context.”
The detailed statistics are available here (PDF document)
Enquiries to: Peter Moffatt, Director of Investment Business
Tel: (01481) 712706 Fax: (01481) 713361
International dialling code: +44 1481
September 2009