A FALL of £5.8bn in the value of funds under management in the island was a decent return, according to Guernsey Investment Funds Association chairman Grant Cameron (pictured).
He said that in view of the current credit crunch and the sub-prime crisis that went before it, a fall had to be expected.
The 2.8% reduction for the quarter ending September took the total value of funds under management and administration in the island to £201.4bn.
However, he said it would be difficult to estimate when the corner might be turned in future. ‘Nobody really knows. The funds under management will only start to show large increases again once the global economy starts to recover.
‘It [the fall of £5.8bn] is fairly good, considering the environment.’
The latest figures also showed that the value of Guernsey-domiciled closed-ended funds grew by £1.1bn over the quarter to reach £85.9bn.
The value of Guernsey-domiciled open-ended funds, however, had fallen by £8bn over the quarter to £65.7bn.
Mr Cameron said that in the context of very poor markets, a fall of £8bn was not a cause for concern and the sector would recover.
And he remained confident that the value of Guernsey-domiciled closed-ended funds would likely continue to grow.
‘The closed-ended sector is diversified and will see certain types of funds such as distressed debt or recovery funds being launched, which will ensure that there are always new funds being launched in Guernsey.’
On 1 February 2007, a registered closed-ended fund regime was introduced in Guernsey.
By the end of June 2008 a total of 126 such funds had received consent from the Guernsey Financial Services Commission, with 12 coming in the three months to the end of September 2008.
Article posted on 28th November, 2008 - 2.30pm
One Article Comment
Unless and until the States grasp the nettle and show that, like in the UK, not one local Guernsey man or woman, as a retail saver has lost money in the failure of the Landsbanki group, then the capital flight will continue.
And that means everyone’s job’s will be that little less secure.
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