THE boom in Guernsey’s fund industry looks set to continue. In an article in online publication Hedgeweek, GuernseyFinance chief executive Peter Niven said the sustained growth in this sector was encouraging news for the island.

‘For Guernsey’s fund industry, 2005 was the most successful year yet, underlining the island’s pre-eminent position as the jurisdiction of choice for a growing number of fund promoters,’ said Mr Niven.

‘And there’s every reason for this unparalleled success to continue, as industry professionals work to develop and reform the island’s legislative and regulatory framework in order to encourage further innovation.’

Mr Niven identified Guernsey’s ‘administrative heritage’ as a factor in the success of the industry, as well as the ‘highly developed infrastructure, including comprehensive specialist legal and accounting services, to support the industry’.

Guernsey has more than £100bn-worth of fund assets under management – a growth of 36% during 2005.

While traditional funds have performed well, the biggest growth areas have been hedge, private equity and property funds, he said.

In a separate article written for the publication, Carey Olsen advocate Ben Morgan acknowledged Guernsey’s attraction for hedge

fund managers, citing recent policy changes implemented by the GFSC as the reason for increased interest.

GuernseyFinance will also be attending conferences and exhibitions abroad, promoting the island’s fund industry and other areas for potential business. This includes China, which, according to a recent BBC poll, is expected to have the world’s biggest economy by 2026.

Guernsey Investment Fund Association chairman Mike de Haaf believed it could offer good business prospects for the island.

‘China is an economy that is expanding,’ he said. ‘There are opportunities to support Guernsey products, such as property funds, as well as other opportunities outside the fund industry that the island could be a part of.’