Islands help to drive fund raising upturn in UK markets
Friday 27th September 2013, 10:00AM BST.
INVESTMENT companies in Guernsey and Jersey have been responsible for three-quarters of the fund raising in British investor markets so far this year.
Ian Sayers, director-general of the Association of Investment Companies, told this year’s Channel Islands conference of the AIC that the islands were at the forefront of an upturn in fund raising seen so far this year.
He said the position had changed considerably in the past 12 months and had improved steadily through 2013. Fund raising from investors has not been so high since the pre-crisis days of 2007 – although at £3.6bn, it is still some way from the £9bn seen back then.
The continuing trend of secondary issues outstripping initial public offerings has seen £2bn raised, while IPOs have raised £1.5bn, and the market has been dominated by a search for income and alternative asset classes.
Funds domiciled in the islands are responsible for 74% of funds raised through IPOs, said Mr Sayers, which reflected the importance of the sector locally and its role in supporting the British economy.