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Guernsey funds begin recovery from year on year losses
Posted: 8 March 2010
Investment funds in Guernsey were up by £2.7 billion (1.5%) in the final quarter of 2009. Even though funds showed growth in the second half of 2009, throughout the full calendar year there was a decline of £16.2 billion (8.1%) since the end of December 2008.
The NAV of Guernsey domiciled closed-ended funds reached a value of £85.4 billion by the end of December 2009, a rise of £4.3 billion (5.3%) during the quarter but a decline of £6.1 billion (6.7%) year on year.
The open-ended sector had a NAV of £50.7 billion by the year end, which was down £800 million (1.4%) in the last quarter of 2009 and down £12.9 (20.3%) billion throughout the year.
"We can continue to be cautiously optimistic about our funds sector," said Peter Niven, Chief Executive of Guernsey Finance.
"Although we have seen overall business decline by some 8% during the last calendar year, it must be remembered that this comes in the wake of a severe global financial crisis. Our performance has outstripped some of our closest competitors and the fact that we have had two consecutive quarters of growth to the end of the year points again to a slow climb out of the general trough of 2008/9".
"Our funds industry is proving robust throughout changing economic conditions and this final quarter of growth represents a positive move forward. It is another step down a long road to recovery but with increasing confidence in the markets, we hope that this will continue through 2010," Mr Niven added.
"Certainly, Guernsey practitioners are reporting a greater level of business than a year ago, with particular interest from promoters and sponsors in harnessing our experience and expertise in the alternative and niche asset classes using closed-ended funds."
Non-Guernsey schemes decreased by £800 million (1.6%) during the last three months of 2009, and reached £48.1 billion, a value that is £2.8 billion (6.2%) higher than the value at the end of December 2008. According to the latest figures, the gross asset value of all Guernsey funds was £220.7 billion by the end of 2009.