Bermuda’s investment funds sector rebounded strongly in the second quarter, with total net asset value climbing back above $300 billion despite a modest decline in the number of funds.

According to the Bermuda Monetary Authority’s quarterly statistics, the NAV of Bermudian-regulated funds rose 4.2 per cent to $304.4 billion in Q2 2025. The increase comes after a 1.6 per cent dip in the previous quarter and marks the highest level since mid-2024.

At the same time, the total number of funds fell slightly to 774, down from 780 in the first quarter and 784 at the end of 2024. This suggests consolidation in the sector, with fewer but larger funds driving asset growth.

The biggest gains came from professional closed funds, where NAV surged from $67 billion to nearly $75 billion. Standard funds also added more than $3.5 billion over the quarter, reaching $75.3 billion.

By contrast, institutional funds, though their NAV rose slightly compared with the previous quarter, continued to slide overall, down to $60.5 billion from $64.3 billion at the end of 2024 and well off the $69.3 billion reported a year ago. Private funds also saw outflows, dropping to 184 from 191 in the previous quarter.

Professional Class A funds continue to buck the overall trend and rose from 76 to 79 funds over last quarter, with NAV climbing by $1.6 billion to $40.1 billion.