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Guernsey funds continue to recover

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The value of investment funds in Guernsey increased by GBP2.7bn, or 1.5 per cent, during the final three months of last year.

The second successive quarter of growth takes the total value of funds business in the Island to GBP184.2bn at the end of December 2009.

However, over the full calendar year this is a decline of GBP16.2bn (8.1 per cent) from the end of December 2008.

“We can continue to be cautiously optimistic about our funds sector,” says Peter Niven, chief executive of Guernsey Finance.

“Although we have seen overall business decline by some eight per cent during the last calendar year, it must be remembered that this comes in the wake of a severe global financial crisis. Our performance has outstripped some of our closest competitors and the fact that we have had two consecutive quarters of growth to the end of the year points again to a slow climb out of the general trough of 2008/9.”

Guernsey domiciled closed-ended funds reached a net asset value of GBP85.4bn at the end of December, which was a rise of GBP4.3bn (5.3 per cent) during the quarter, but a decline of GBP6.1bn (6.7 per cent) year on year.

The Guernsey open-ended sector was valued at GBP50.7bn by the end of the year – down GBP800m (1.4 per cent) during the final three months of 2009 and falling GBP12.9bn (20.3 per cent) compared to 12 months ago.

Non-Guernsey schemes, where some aspect of management, administration or custody is carried out in the island, decreased by GBP800m (1.6 per cent) during quarter three to reach GBP48.1bn, although this is GBP2.8bn (6.2 per cent) higher than the value at the end of December 2008.

The figures issued also show that the gross asset value of all Guernsey funds reached GBP220.7bn at the end of December. This is a rise of GBP3.5bn (1.5 per cent) from the end of September, which was the second quarter for reporting those gross figures.

Within the investment management and stockbroking sector, 80 respondents confirmed gross assets under management of GBP47.1bn.

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