Optimism despite £1bn fall in funds

OPTIMISM remains in Guernsey's fund sector despite a £1bn. fall in funds held under management in the last quarter of 2008, according to investment fund specialist Andrew Boyce (pictured).

The Carey Olsen partner said the island was not immune to negative global trends so a decrease was not surprising in the present economic climate.

The £1bn. decrease announced by the Guernsey Financial Services Commission means the island was now looking after funds worth £200.4bn. at the end of 2008, but also means that their value has fallen by more than £7bn. as they stood at £207.2bn at the end of June.

'Some of this decrease is attributable to an overall decrease in the value of assets held by funds, but with over £200bn. still managed and administered in the island, there is ample evidence that fund structures are still very relevant to the global investor community.

'In general terms Guernsey, with its solid reputation, the varied types of vehicles available, the quality of the local service providers and the flexibility of the regulatory regime, including the new fund rules, is in a prime position to attract the next wave of fund structures that will inevitably be created as the market turmoil stabilises and an altered form of normality returns.'