Guernsey's funds under management and administration fell by £1bn (0.5%) in Q4 of last year, but values are up by £22.2bn or 12.5% over the whole year.
Open-ended funds domiciled on the island dropped £2.1bn (3.2%) over the final quarter of last year to £63.6bn, representing a decrease of £5.6bn (8.1%) over the year since 31 December 2007.
The drop in the funds' value over the quarter is mainly due to adverse performance of global markets and investors pulling their money from investment funds, according to Guernsey Finance.
However, the closed-end fund sector grew by £5.6bn (6.5%) over Q4 and £15.1bn (19.8%) over the year since 31 December 2007 to reach a new record of £91.5bn.
This could be attributed to some parts of the sector holding unquoted investments which may be insulated from quoted market movements.
Andrew Boyce, partner at Channel Islands law firm Carey Olsen, says almost all enquiries currently focus on closed-ended vehicles. Many of these related to secondaries funds which are established to support the interests of defaulting investors in other funds.
Investors are also interested in some debt and distressed asset funds for property and alternatives, he says.
"Indeed many of the inquiries we have seen relate to closed-ended fund structures that are still aiming to raise fairly substantial funds, in excess of £500m," adds Boyce.
Non-Guernsey schemes which are managed or administered from the Bailiwick decreased by $4.5bn (9%) over the quarter to £45.3bn because of ongoing poor performance of the global hedge fund sector.
However, the figure increased by £12.7bn or 39% over the year since 31 December 2007.
"Guernsey is not immune from the continuing volatility of global markets which has affected investment funds everywhere," says Peter Moffatt, director of investment business at the Guernsey Financial Services Commission.
"Nonetheless these figures demonstrate the resilience of Guernsey's investment fund sector," he adds.
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