FUNDS under management and administration have shot through the £100bn mark in the last quarter. The industry has seen a rise of 37% in business in the last 12 months.

The Guernsey Financial Services Commission said that the value of funds at the end of June was £114.8bn compared with last year’s total of £84bn.

‘New fund approvals continue to run at record levels and there is a continuing flow of enquiries both from those with an established track record of domiciling their international funds in Guernsey and promoters new to the jurisdiction,’ said director of investment business Peter Moffatt.

‘Demand from promoters to establish their funds in Guernsey, attracted by the quality of Guernsey’s service providers and the recognition for pragmatic regulation, has continued to increase significantly.’

Within these totals, Guernsey-based open-ended funds grew by £479m., or 0.9%, over the quarter and by £12.4bn, or 30%, over the year to reach a new record of £53.9bn.

Closed-ended funds also grew, with increases of £4.8bn, or 14.2%, over the quarter and £13.4bn, or 53.5%, over the year to reach a new record of £38.6bn.

The value of non-Guernsey schemes whereby some aspect of administration or management is conducted here fell during the quarter by £1.8bn, or 7.6%, to £22bn.

The decrease resulted from the impact of market movements on hedge funds. Since June 2005, the value of non-Guernsey schemes has risen by 28%.

GuernseyFinance chief executive Peter Niven said it was excellent news that the island continued to see growth in new business and that quarterly records for the value of funds in Guernsey were being set.

‘Industry practitioners are reporting that they still have the capacity to take on more new business and as such are marketing the opportunities provided by Guernsey to their client base.’ he said.

‘The island’s fund sector is thriving and remains very much open for business,’ he said.

Fifty-eight qualifying investor funds had been approved by the end of June since the scheme launched in February.