The total value of funds business in Guernsey is at a five-year high following a predicted rise in net asset value in Q2 2018, according to the latest figures from the Guernsey Financial Services Commission.
The figures for the end of June 2018 showed the net asset value stood at GBP276.2 billion, the highest since the end of June 2013, and a growth of more than GBP13 billion (4.94 per cent) on Q1 2018 and a 12-month growth of more than GBP5 billion (1.9 per cent).
Private equity business was a huge contributor, with a near GBP7 billion (6.6 per cent) increase on Q1 to GBP112.7 billion, accounting for more than half of the overall increase.
Guernsey-domiciled closed-ended funds are at an all-time high, standing at GBP168.2 billion following a quarterly increase of GBP0.4 billion (0.22 per cent) and an annual rise of GBP1 billion (0.61 per cent).
Open-ended funds rose GBP1.4 billion (3.4 per cent) over the quarter to GBP43.2 billion, representing an annual decrease of GBP0.7 billion (-1.6 per cent).
Non-Guernsey schemes – funds not domiciled in the island but with some aspect of their management, administration or custody carried out locally – grew by 22.9 per cent (GBP11.9 billion). An increase of GBP4.9 billion (8.07 per cent) since 30 June 2017 values them at GBP64.7 billion – the highest since September 2014.
Guernsey Finance Chief Executive Dominic Wheatley (pictured), predicted the upturn earlier this year and is pleased that confidence had been vindicated by the latest figures.
“We knew of a number of new enquiries in the pipeline that would bear fruit in Q2 and it is satisfying to see that reflected in the latest figures,” says Wheatley. “We have confidence that will continue as further work on new business continues.”
“Activity such as updating the regulations for the Guernsey Private Investment Fund (PIF) has certainly had an effect. There were seven PIFs launched in Q2 and 13 so far this year, already ahead of the total 2017 figure.”
“The increase in the value of non-Guernsey schemes also reflects a combination of strong manager performance, high subscription levels, and weakening sterling against key currencies.”
“With Guernsey’s investment funds industry being a centre of excellence for private equity, I am pleased with the continuing success of the sector.”