The latest Guernsey fund figures represent a year on year rise of 1.6% but the second consecutive quarterly drop in the value of the island's fund business following eight straight quarters of growth.
Statistics from the regulator, the Guernsey Financial Services Commission (GFSC), show that the net asset value of funds under management and administration in Guernsey decreased by £10.2 billion (3.7%) during the final quarter of last year.
Commenting on the figures, Chief Executive of Guernsey Finance, Peter Niven, said: “Taking 2011 as a whole, there was actually growth in the value of funds business in Guernsey. This is very positive, especially considering the investment climate, but we have to be aware that after strong growth in the first six months of the year to reach a record high of £274 billion, we have seen a contraction during the second half to reach £261 billion at the close of 2011."
Niven went on to say that while the figures reflect the continued uncertainty and nervousness in the international investment community, it also shows that Guernsey cannot be complacent.
"This is the time in the economic cycle when we need to be out in the marketplace promoting Guernsey as a funds domicile so that we are among the first tier of jurisdictions under consideration by managers and advisers when the general conditions are more suitable for doing business. It highlights the importance of promoting Guernsey both in traditional and new markets and this is precisely what we have been doing."
He added: "We already have a busy programme of activity in place, including the Guernsey Funds Forum in London at the start of May. What these latest figures show is that we need to ensure that we maximise these opportunities and then build on them in the future so that we can continue to grow the Guernsey funds business.”
Recently, Guernsey Finance and industry representatives attended the private equity conference, SuperReturn International, in Berlin and another at the Russian Fund Forum in Moscow. In the coming months, Guernsey Finance and industry representatives plan to attend the property conference, MIPIM, in Cannes as well as the BVCA Mena event in London.
Guernsey domiciled open-ended funds reached a net asset value of £55.3 billion at the end of 2011, which was a decrease of £2.1 billion (3.6%) during the quarter and down £2.6 billion (4.5%) year on year. The Guernsey closed-ended sector was valued at £119.1 billion at the end of December – down £6.6 billion (5.2%) during the last three months of 2011 but up £9.6 billion (8.8%) compared to twelve months earlier. Non-Guernsey schemes, where some aspect of management, administration or custody is carried out in the Island, fell by £1 billion (1.1%) during the quarter to reach £87 billion at the end of 2011, which is £3 billion (3.3%) lower than the value at the end of December 2010.
The figures represent the second consecutive quarterly drop in the value of the Island’s funds business but follows eight straight quarters of growth. This means that the total value of funds under management and administration reached £261.4 billion at the end of 2011, which is a rise of £4 billion (1.6%) year on year.
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