Guernsey’s funds industry is outperforming its nearest competitor, according to Peter Niven, chief executive of industry promotional body Guernsey
Guernsey’s funds industry is outperforming its nearest competitor, according to Peter Niven, chief executive of industry promotional body Guernsey Finance, who says the island is narrowing the gap in fund assets to Jersey.
The value of funds under management and administration in Guernsey reached GBP207.2bn at the end of June, an increase of GBP3.4bn (1.7 per cent) during the quarter and GBP51.6bn (33 per cent) year on year despite the difficult market conditions for the alternative strategies that account for the bulk of Guernsey fund assets.
By comparison, Niven notes, the value of Jersey’s funds business shrank by GBP1.8bn (0.7 per cent) during the second quarter to total GBP244.2bn at the end of June, an increase of GBP33.8bn (16 per cent) over the previous 12 months.
In June 2007, he points out, Jersey had GBP54.8bn more in fund assets than Guernsey, but a year later the gap has narrowed to GBP36.9bn.
“We thought our performance was strong considering the world economic scene, but it now looks even more encouraging when you consider that some of our competitors such as Jersey have seen a reduction in the value of their business,” Niven says.
“At the moment Guernsey is very much bucking the trend because promoters and sponsors find our offering so attractive. Pragmatic regulation, excellent corporate governance through a network of qualified non-executive directors and a broad range of specialist professionals, including administrators, who work as a team, are some of the primary ingredients that make the island’s funds industry a success.
“It is difficult to say now exactly what the figures will be for the third quarter but there is a mood of optimism. We also know of some promoters whose plans are well advanced, which will keep the figures buoyant in the final quarter of the year. However, we’re not resting on our laurels. Guernsey Finance is stepping up its promotional activities through events such as the Guernsey Funds Forum in London and other more targeted initiatives.”
The forum takes place at the Queen Elizabeth II Conference Centre in Westminster on October 7 and features speakers including Nicola Horlick, chief executive of Bramdean Asset Management, Herbert Smith partner Nigel Farr, Channel Islands Stock Exchange chief executive Tammy Menteshvili, and Veronica Eng from private equity firm Permira.
In the second quarter the value of private equity funds in Guernsey grew by nearly GBP1bn (2.5 per cent) to GBP36.2bn, despite the difficult market conditions that have resulted in private equity fundraising across Europe fall by around 10 per cent this year.
Guernsey Finance says the island’s competitiveness is also reflected in a below-average decline in the value of bank deposits during the second quarter. Total deposits declined by GBP1.4bn (1.1 per cent) to GBP128.1bn at the end of June, which represents a year on year rise of GBP20bn (18.5 per cent).
By contrast, the GBP196.9bn in deposits held by Jersey banks at the end of June was down GBP13.1bn (6.2 per cent) since March and an increase of just GBP14.8bn (7 per cent) in the previous 12 months. Over that period Jersey’s lead of GBP103.5bn in bank deposits over Guernsey has narrowed to GBP68.7bn.
