Drop in funds’ value expected

Friday 12th June 2009, 2:30PM BST.

THE value of Guernsey investment funds fell by £24.5bn in the first quarter of the year due to volatility in the global markets.

Total funds under management or administration in the island fell to £175.9bn – a drop of 12.2%, according to figures released yesterday.

Peter Niven (pictured), the chief executive of GuernseyFinance – the agency that promotes the industry – said the news was not unexpected and fund values were expected to hold up better during this quarter.

‘When the figures for the quarter to the end of 2008 were published we highlighted that Guernsey’s funds industry was continuing to perform resiliently in the face of extremely difficult market conditions,’ he said.

‘However, it was noted that we were likely to see further reductions in asset values in the immediate term because of a continuing lack of investor confidence.’

He said this had proven to be the case.

‘During the first three months of this year a certain amount of business was still coming through but clearly this was at lower levels than in the last two or three years when we had record flows,’ he said.

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View more: GuernseyFinance news, Peter Niven news.

1
Frank

June 13, 2009 at 1:15 pm

Strange that, when share prices have fallen so much. A good job we have experts to tell us these things!

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2
Stephen John

June 14, 2009 at 3:15 pm

Frank

When the taxpayer provides you with a nice little earner, you must give the impression of providing value, even though it is obvious.

Or perhaps it is not obvious to Mr Niven?

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3
Ted

June 15, 2009 at 2:03 pm

Mr Niven has likened himself to John the Baptist in relation to the finance industry, his master. One can only hope he does not share John’s fate since the finance industry does not forsee life – and reward or punishment – after death.

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