First-quarter growth in fund values is best for four years

By: GIFA, Thursday, July 6, 2017

GUERNSEY funds have started 2017 with their best growth for a quarter in four years. The net asset value of funds under management and administration in the island grew by £10.6bn (4.1%) over the quarter – the highest margin of growth since the first quarter of 2013, when funds grew by $19.7bn.

Over the past year, total net asset values increased by £28.6bn (12%), according to figures from the Guernsey Financial Services Commission. The statistics also build on six straight previous quarters of growth to take the total value of funds business in Guernsey to £266.5bn at end of March. This marks the longest continued period of increased value in nearly six years when June 2009 to June 2011 reached eight straight quarters of growth.

“It is extremely positive to see that Guernsey funds continue to offer an attractive investment proposition in these uncertain times,” said Daren Bacon partner and funds specialist at law firm Mourant Ozannes. “The listed funds sector remains active, with infrastructure and other yield-producing asset classes remaining popular in the current low, or no, interest rate environment. This year has seen a number of new private equity funds successfully raising significant capital from investors.”

Guernsey Finance chief executive Dominic Wheatley said that the results were reassuring and demonstrated the stability of the island and its funds industry. “We now seen seven consecutive quarters of growth, with the value of open-ended funds on the rise again after a brief dip last quarter, which is especially pleasing as it shows the island is on the right track. The growth in the first quarter of this year was more than a third of the entire growth in 2016, so marks a very positive start to the year for the funds sector.”

Both closed-ended and open-ended funds are growing, with the closed-ended sector up 3.1% in value over the quarter at £164.3bn and open -ended funds up 3.8% at £43.9bn. Non-Guernsey schemes – funds that are not domiciled in Guernsey but have some aspect of their management, administration or custody carried out in the island – have increased in value by more than 20% over the past year.

The first quarter of the year also generated headlines for the sector, with the launch of the world’s first commercial deployment of block-chain technology in the administration of investment funds locally by Northern Trust.

Source: Guernsey Press 5/7/17

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