Press Release - Commission's Initiative Bears Fruit

Following the introduction in March of a new category of open-ended fund (see endnote 1) aimed at qualifying professional investors (Class Q schemes - see endnote 2), the first Class Q scheme was authorised by the Commission during the quarter ended 30 June 1998. The Commission's initiative was taken against the background of demand for this new product from international fund sponsors, and it is of note that the first sponsor to take advantage of this opportunity was an institution not precisouly represented on the Island.

The Asian crisis and sharp falls in Eastern Europe exchanges affected the total value of funds under management which decreased over the quarter by 4.2% to just under £16 billion; this trend was reflected also in the value of non-Guernsey schemes serviced from Guernsey which fell by 3.8% to just under £5 billion despite the addition of 2 new funds.