Confidence in Guernsey fund business reflected in five-year high

04 September 2018

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 £276.2 billion, the highest since the end of June 2013, and a growth of more than £13 billion (4.94%) on Q1 2018 and a 12-month growth of more than £5 billion (1.9%).

Private equity business was a significant contributor, with a near-£7 billion (6.6%) increase on Q1 to £112.7 billion, accounting for more than half of the overall increase.

"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. We have confidence that will continue as further work on new business continues."
Guernsey Finance Chief Executive Dominic Wheatley

Guernsey-domiciled closed-ended funds are at an all-time high, standing at £168.2 billion following a quarterly increase of £0.4 billion (0.22%) and an annual rise of £1 billion (0.61%).

Open-ended funds rose £1.4 billion (3.4%) over the quarter to £43.2 billion, representing an annual decrease of £0.7 billion (-1.6%).

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% (£11.9 billion). An increase of £4.9 billion (8.07%) since 30 June 2017 values them at £64.7 billion – the highest since September 2014.

Guernsey Finance Chief Executive Dominic Wheatley predicted the upturn earlier this year and was 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,” Mr Wheatley said. “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.”