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Guernsey funds sector sees consecutive year-on-year growth

The total value of funds business in Guernsey grew by approximately GBP20 billion over the 12 months to the end of the third quarter of this year.

Figures from the Guernsey Financial Services Commission (GFSC) show that, at the end of September 2017, the net asset value of all funds under management and administration in Guernsey stood at GBP269 billion – an 8 per cent increase on September 2016. The figures also confirm two consecutive years of growth, with the net asset value of funds growing by nearly GBP25 billion between Q3 2015 and Q3 2016.

The annual increase was largely thanks to the growth of Guernsey-domiciled closed-ended funds, which increased by GBP13.7 billion (8.98 per cent) over the year. Guernsey open-ended funds remained stable at GBP43.9 billion.

Guernsey Finance Chief Executive Dominic Wheatley (pictured), says: “This consistency in Guernsey’s funds sector highlights how stable and attractive we are as a place to domicile funds, especially in the face of political instability causing uncertainty globally over the last couple of years.

“This is timely news ahead of our Guernsey Funds Masterclass in London in February, where our ‘Second age of discovery’ theme will focus on the non-EU distribution of funds and demonstrate how the island can provide answers with the United Kingdom weighing up its options due to Brexit-fuelled ambiguity. As an international finance centre, Guernsey is utilised by the UK as a gateway for investing into and raising capital from the rest of the world.”

Non-Guernsey schemes – funds not domiciled in the island but with some aspect of their management, administration or custody carried out there – grew by GBP7.8 billion (15.23 per cent) since 30 September 2016 and so are valued at GBP59 billion.

Guernsey’s financial services regulator approved 10 new investment funds during Q3, comprising six closed-ended funds, one open-ended fund and three non-Guernsey schemes, contributing to a total of 982 funds currently approved for domiciling or servicing in Guernsey.

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