Guernsey’s funds sector is continuing to feel the pinch from the economic downturn, with net asset value in closed and open-ended locally domiciled structures having fallen more than 21% at the end of June compared to a year earlier.
Figures from the Guernsey Financial Services Commission (GFSC) showed the quarterly drop was more muted, at 7.7%.
In contrast, non-Guernsey domiciled funds – those for which some aspect of management or administration is carried out in the island, increased by some £4bn over the quarter, but were still more than 7% below the levels recorded in June 2008.
Overall, taking in both Guernsey and non-Guernsey domiciled funds, total asset value was £170bn at the end of June, 3.5% down on the previous quarter and 18% below that of a year earlier.
Peter Moffatt, director of investment business at the GFSC, said: “These figures show, as expected, that Guernsey is not immune from the pressure on asset values which has been experienced worldwide.”
Peter Niven, chief executive of Guernsey Finance, the body that promotes the island’s financial services, said positives could be taken from the fact Guernsey was faring less badly than some other offshore fund centres, while local practitioners were reporting the beginnings of an upturn in business.
“I would however caution that we are not out of the woods yet and I believe it will be much nearer the end of 2009 before we will be able to see proper evidence of any sustained turnaround,” he added.
