Continued strong performance by Guernsey’s fund sector

Whilst UK-based fund promoters and distributors have perhaps had the odd sleepless night given the uncertainty created by the British public’s vote to leave the EU, that may not have been the case amongst Guernsey’s service providers. Figures released today by the Guernsey Financial Services Commission for the third quarter of 2016 show that the industry has recorded it fifth successive quarter of growth.

The increase in NAV was most noticeable in the open ended sector which recorded a 10.4% increase during the 3rd quarter. In sterling terms that equates to £4.3 billion.

Whilst there was a slight decrease in the NAV of closed ended funds during the quarter, the number of funds actually increased and on a year-on- year basis, the closed ended sector saw growth of £14 billion.

I was a little surprised to see a reduction in the number of Non Guernsey Schemes serviced on the Island as I understand from discussions with several service providers that at least some are seeing significant interest in this area.

Overall, the growth is perhaps not unexpected given the Island’s long-held reputation as a stable jurisdiction.  Such “safe haven” status may well prove attractive to promoters looking to restructure fund platforms or even their internal operations.

For those interested in or potentially impacted by Brexit, Guernsey Finance is hosting a Funds Masterclass in London on 8th February where fund raising in a post-Brexit world will be discussed. Please contact Icorserv if you would like to attend or require further details on this event.