Investment funds increasing in Guernsey
17 September 2014 Guernsey
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Forty-two new investment funds have been approved by Guernsey’s financial services regulator during Q2 2014, resulting in a total 131 additional during 12 months to the end of June.
Figures from the Guernsey Financial Services Commission (GFSC) show that 33 new funds were approved during Q3 of 2013 and 30 during Q4, this is alongside 26 during Q1 of 2014 and the 42 in Q2.
Two open-ended funds, 17 closed-ended funds and 23 non-Guernsey open-ended schemes between the start of April and the end of June. Taking into account licences relinquished, this represents net growth of 13 funds during the quarter and takes the total number of funds currently approved for domiciling or services in Guernsey to 1,108.
Fiona Le Poidevin, chief executive of Guernsey Finance, said: “It is encouraging to see this high number of new funds being approved for domiciling or servicing in Guernsey. The fact that this straddles the transitional period for the introduction of the Alternative Investment Fund Managers Directive (AIFMD) shows that promoters recognise the advantage of Guernsey’s ability to distribute funds into both European and non-European jurisdictions to best meet their specific circumstances.”
“During [Q2], Citco Fund Services established new administration operations in the Island, which is a huge vote of confidence in Guernsey’s fund industry. Not only are we seeing repeat fund launches from established houses such as Mid Europa and John Laing but also managers which are new to Guernsey, such as Fair Oaks Capital and SQN Capital Management.”
“These fund launches have been primarily in the closed-ended sector but across a variety of asset classes, including private equity, property, debt, infrastructure and energy – and especially where there is demand for a listing.”
Statistics from the GFSC show that the net asset value of all funds under management and administration in Guernsey fell by 1.1 percent during Q2 to £261.3 billion at the end of June.
Open-ended funds decreased in value by 4.4 percent to #40.7 billion and close-ended funds fell by 0.5 percent to #135.7 billion.
Non-Guernsey schemes decreased in value by 0.2 percent to reach £84.9 billion.
Le Poidevin added: “The figures also show that during the [Q2] there were a significant number of new ‘non-Guernsey’ open ended schemes approved for management, administration or custody in the Island.”
“This reflects the significant substance which already exists in Guernsey, especially in comparison to some other jurisdictions and this is likely to be an increasingly important differentiator.”
“Although we’ve seen a fall in value of funds under management or administration in the last quarter, this is partly a symptom of general market conditions and currency exchange rate factors. Nevertheless, it also demonstrates the continued challenges facing the industry and the need to stay ahead of the game.”
“Overall, Guernsey’s funds sector is in a stable position – we’ve seen growth in the number of new funds coming to the island and a positive response to our regime under AIFMD – and as long as we respond appropriately to the head winds then I am optimistic for the long term future of the industry.”
Figures from the Guernsey Financial Services Commission (GFSC) show that 33 new funds were approved during Q3 of 2013 and 30 during Q4, this is alongside 26 during Q1 of 2014 and the 42 in Q2.
Two open-ended funds, 17 closed-ended funds and 23 non-Guernsey open-ended schemes between the start of April and the end of June. Taking into account licences relinquished, this represents net growth of 13 funds during the quarter and takes the total number of funds currently approved for domiciling or services in Guernsey to 1,108.
Fiona Le Poidevin, chief executive of Guernsey Finance, said: “It is encouraging to see this high number of new funds being approved for domiciling or servicing in Guernsey. The fact that this straddles the transitional period for the introduction of the Alternative Investment Fund Managers Directive (AIFMD) shows that promoters recognise the advantage of Guernsey’s ability to distribute funds into both European and non-European jurisdictions to best meet their specific circumstances.”
“During [Q2], Citco Fund Services established new administration operations in the Island, which is a huge vote of confidence in Guernsey’s fund industry. Not only are we seeing repeat fund launches from established houses such as Mid Europa and John Laing but also managers which are new to Guernsey, such as Fair Oaks Capital and SQN Capital Management.”
“These fund launches have been primarily in the closed-ended sector but across a variety of asset classes, including private equity, property, debt, infrastructure and energy – and especially where there is demand for a listing.”
Statistics from the GFSC show that the net asset value of all funds under management and administration in Guernsey fell by 1.1 percent during Q2 to £261.3 billion at the end of June.
Open-ended funds decreased in value by 4.4 percent to #40.7 billion and close-ended funds fell by 0.5 percent to #135.7 billion.
Non-Guernsey schemes decreased in value by 0.2 percent to reach £84.9 billion.
Le Poidevin added: “The figures also show that during the [Q2] there were a significant number of new ‘non-Guernsey’ open ended schemes approved for management, administration or custody in the Island.”
“This reflects the significant substance which already exists in Guernsey, especially in comparison to some other jurisdictions and this is likely to be an increasingly important differentiator.”
“Although we’ve seen a fall in value of funds under management or administration in the last quarter, this is partly a symptom of general market conditions and currency exchange rate factors. Nevertheless, it also demonstrates the continued challenges facing the industry and the need to stay ahead of the game.”
“Overall, Guernsey’s funds sector is in a stable position – we’ve seen growth in the number of new funds coming to the island and a positive response to our regime under AIFMD – and as long as we respond appropriately to the head winds then I am optimistic for the long term future of the industry.”
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