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Guernsey fund values get “huge” help from private equity

AUM increaseThe value of Guernsey’s funds under administration is at a five-year high following a rise in private equity.

Guernsey Finance said total net asset values at the end of June stood at £276.2 billion, the highest since the end of June 2013.

This reflected growth of more than £13 billion, a 4.94% rise on the first quarter of 2018. Growth over 12 months was more than £5 billion, or 1.9%.

Private equity business was a “huge contributor” at nearly a £7 billion, or a 6.6% increase, over the first three months of the year to £112.7 billion and accounted for more than half of the overall increase.

Guernsey-domiciled closed-ended funds are at an all-time high, standing at £168.2 billion.

Non-Guernsey schemes – funds not domiciled in the island but with some aspect of their management, administration or custody carried out locally – grew by 22.9% (£11.9 billion), valuing them at £64.7 billion. This is the highest since September 2014.

Guernsey Finance chief executive Dominic Wheatley, said: “Activity such as updating the regulations for the Guernsey Private Investment Fund (PIF) has certainly had an effect. There were seven PIFs launched in Q2 and 13 so far this year, already ahead of the total 2017 figure.

“The increase in the value of non-Guernsey schemes also reflects a combination of strong manager performance, high subscription levels, and weakening sterling against key currencies.”

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