GLOBAL CONDITIONS IMPACT GUERNSEY INVESTMENT FUNDS
Total funds under management and administration fell by £5.8 billion (2.8%) over the quarter ended 30 September 2008 to £201.4 billion. For the year since 30 September 2007, values increased by £36.9 billion, an increase of 22.4%.
Within these totals, Guernsey domiciled open-ended funds fell by £8 billion (10.8%) over the quarter to £65.7 billion. This represents an increase of £0.7 billion (1.1%) over the year since 30 September 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 referred to below.
The Closed-end fund sector saw growth, with increases of £1.1 billion (1.3%) over the quarter and £18.3 billion (27.1%) over the year since 30 September 2007, to reach £85.9 billion, 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.
Non-Guernsey schemes, for which some aspect of management or administration is carried out in the Bailiwick, increased by £1.1 billion (2.1%) over the quarter to leave their value at £49.8 billion. This figure is an increase of £17.9 billion (56.1%) over the year since 30 September 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.
In the quarter ended 30 September 2008 five Qualifying Investor Funds were approved and a further 12 Registered Closed-end Investment Funds received consent. Since 30 September a further Registered Closed-end Investment Fund and 2 Qualifying Investor Funds had completed the application process under those regimes.
Since inception of the QIF regime in February 2005, and as at 30 September 2008, a total of 210 QIF vehicles have received consent or approval. Since the introduction of the Registered Closed-ended Investment Fund regime in February 2007, and as at 30 September 2008, a total of 126 Registered Closed-ended Investment Funds have received consent under that regime.
Peter Moffatt, Director of Investment Business at the Guernsey Financial Services Commission, 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”.
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
6 November 2008