FUNDS under management have topped £60bn for the first time. The continuing recovery of global investment markets and significant new investment has resulted in an increase of £4.3bn. over the position at the end of last year and £17.2bn over that at the end of March 2003.

Peter Neville, director general of the Guernsey Financial Services Commission, said that during the first three months of 2004 net new investment exceeded £25.bn.

In the 12 months ended 31 March, net new investment into open-ended schemes exceeded £7.5bn.

‘These large inflows have been mainly due to the performance of alternative strategy funds which have attracted a lot of interest from institutional and sophisticated investors who can be based anywhere in the world,’ he said.

Within the overall total, the value of open-ended funds increased during the quarter by £3.6bn, a rise of more than 16%, to £25.7bn.

Over the year to 31 March, open-ended funds increased in value by £9.2bn, an increase of more than 55%.

By contrast, the value of closed-ended funds fell marginally over the quarter to £19.3bn, though over the year to 31 March, values went up by £1.6bn, an increase of 9%.

The value of non-Guernsey schemes for which some aspect of administration is conducted in the island increased over the quarter by £1.1bn to £15.7bn.

Over the year to the end of March, the increase amounted to £1.6bn, a rise of 69.5%.

‘The continued positive performance by the fund sector is good for the island in that the service provided to attract such funds, including the managers, administrators and custodians, will earn fees that are dependent upon their value.

‘As this increases, so do the fees charged by the service providers with a consequential benefit to the economy as a whole.’