Figures released recently by the Guernsey Financial Services Commission show that Guernsey funds performed strongly in the first half of 2016, despite notable volatility in some markets in the first couple of months of the year.
Open ended funds saw a total NAV increase of approximately 6.6% in Sterling terms taking the total net asset value of funds authorised and registered on the Island to over GBP 41 bn. Closed ended funds saw an even more impressive 9 % increase with a total reportable NAV of GBP 153 bn at mid year end.
Whilst acknowledging the favourable impact of exchange rates on the numbers, the statistics indicate that Guernsey continues to prove attractive to promoters looking to launch new investment vehicles on the Island – and in some cases have management or administration provided by specialist firms on-Island although the funds themselves may be domiciled elsewhere.
During the first six months of 2016, 42 new open ended funds (cells of umbrella structures) were launched although overall, the total number of authorised and registered schemes was largely unchanged. The position was similar in the closed ended sector – possibly due to the fact that although new funds continue to be launched, a number of private equity funds established in the mid-2000s are reaching the end of their fixed terms.