Jersey’s finance industry reported a positive first quarter for 2013 right across its different sectors, with the levels of bank deposits rising and the value of funds being administered increasing to their highest level in four years.
In the first quarter of 2013, bank deposits grew for the second consecutive quarter, increasing by GBP3bn, with sterling deposits representing 36 per cent and currency deposits 64 per cent of the total amount.
Within the funds sector, the total net asset value of funds under administration in Jersey surpassed the GBP200bn barrier for the first time since March 2009, showing a quarterly increase of 6.5 per cent to stand at GBP205.3bn. There was also a GBP1.5bn rise in the value of funds under investment management, to stand at GBP22.7bn at the end of the three month period.
The latest statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31 March 2013. Headline figures across all sectors of the industry include:
• The total value of banking deposits held in Jersey increased by GBP3bn from GBP152.1bn to GBP155.1bn during the first quarter of 2013.
• The net asset value of funds under administration increased by GBP12.5bn from GBP192.8bn to GBP205.3bn during Q1 2013. The total number of regulated funds increased by seven from 1,388 to 1,395 over the same period. The total number of unregulated funds increased by two from 182 to 184 during the quarter.
• The value of total funds under investment management increased by GBP1.5bn from GBP21.2bn to GBP22.7bn during the first quarter of 2013.
• The total number of live companies increased by 287 to 32,790 at the end of Q1 2013.
Geoff Cook (pictured), chief executive of Jersey Finance, says: ‘’All sectors of Jersey’s finance industry reported good growth performance during the first quarter of 2013. Our funds sector accounted for the strongest growth with a 6.5 per cent increase in the net asset value of funds under administration. The largest contribution came from the private equity and venture capital asset classes where a GBP4bn increase was noted and hedge funds reported a GBP2.7bn increase.
“The banking sector saw an increase of two per cent in total deposits, with deposits specifically originating from the Middle East increasing by one per cent to now constitute 14 per cent of total banking deposits. The Middle East is a key market for Jersey and it is encouraging to see that Jersey continues to inspire confidence in investors in the region.
“In addition, the investment management sector grew its assets by 7.2 per cent. Jersey is home to several big brands in the asset management industry as well as a number of investment management houses offering boutique services.
“These latest statistics are extremely positive. Jersey has a strong growth plan in place for its finance industry and we are confident our jurisdiction will continue to instil confidence with investors for many years to come.”
Nigel Strachan, chairman of the Jersey Funds Association, says: “Particularly ahead of the introduction of the Alternative Investment Fund Managers Directive in July, it is pleasing that our funds industry continues to show strong signs of growth. Not only are new funds being launched in Jersey, with numbers of regulated and unregulated funds both increasing, but positive performances specifically in the private equity, venture capital, real estate and hedge fund asset classes reflect the confidence the international funds community has in Jersey as a specialist alternative funds centre in the long-term.”