A review of the statistics of funds under management/administration in both Jersey and Guernsey over the past two years does not reveal anything extraordinary but can be seen as a reliable indicator that fund values are returning
Click here to view the graphs.
The Jersey statistics include CIF'S - Collective Investment Funds (established under the Collective Funds (Jersey) Law 1988) and COBO Funds - investment schemes established under the Control of Borrowing (Jersey) Order 1958.
The Guernsey statistics include both Authorised and Registered Closed-Ended and Open-Ended Schemes as well as Non-Guernsey Schemes.
Year end 2008 saw the first indication of decreasing values with concerns being raised about liquidity. Valuations continued to suffer in 2009 with Jersey reaching its lowest level in September 2009 (£163,029 million). The valuation of Guernsey funds bottomed out in June 2009 (£169,619 million). Since then fund values have consistently increased in both Jersey and Guernsey, with Jersey up 7.92% since September 2009 and Guernsey up 32.16% since the low point in June 2009.
In terms of number of funds, the numbers in Jersey and Guernsey continue to fall but there are signs that this is bottoming out, with Guernsey numbers only 0.5% below the historic high of December 2008.
The recovery has been long awaited and there are signs of confidence returning to the market with the levels of enquiries increasing. We, Bedell Fund Services, are seeing an encouraging number of secondary transactions returning in the private equity market. IPO's are still showing signs of reluctance. In terms of real estate, transactions are now being placed on the market but the majority of these seem to be enforced by the lenders. There are enquiries for new funds which must mean that investor confidence is returning but there still appears to be a degree of caution. It is hoped such confidence will result in an increase in the number of funds and a continued increase in the NAV of existing funds over the coming quarters.
Credit: Figures obtained courtesy of the Jersey Financial Services Commission and Guernsey Financial Services Commission.