Funds figures reach five year high

Monday 08 December 2014

Figures released by Jersey Finance show the value of the Island's funds business is at its highest level in five years.

The statistics highlight that the net asset value of regulated funds increased by £5 billion in the third quarter of 2014, and by around 5.5% year-on-year, to reach just over £205 billion, the highest figure since March 2009. This was led by another strong performance in the alternative asset classes, with private equity and real estate funds both growing on the previous quarter by over 4%.

Although bank deposits fell slightly, they remain stable with over 18% of deposits now emanating from the Middle and Far East, whilst the number of live companies on the registerin Jersey is at its highest level for four years.

The latest statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 30thSeptember 2014. Headline figures include:

• The total value of banking deposits held in Jersey decreased by £2.3 billion from £138.9 billion to £136.6 billion during the third quarter of 2014.
• The net asset value of regulated funds under administration increased by £5 billion from £200.4 billion to £205.4 billion during Q3 2014. The total number of regulated collective investment funds increased by 21 from 1,283 to 1,304 over the same period.
• The total number of consents granted in respect of COBO only Private Placement funds increased by 3 to 30 with a reported total NAV of £696 billion. As at end of the third quarter of 2014, there were 204 unregulated funds of which 133 were active.
• The value of total funds under investment management decreased slightly by £0.5 billion from £21.8 billion to £21.3 billion during the third quarter of 2014.
• The total number of live companies increased by 207 to 33,414 at the end of Q3 2014.

Geoff Cook, Chief Executive, Jersey Finance, said: "The total value of banking deposits dropped by £2.3 billion in 2014 Q3. This was the result of an underlying decrease of £4.6 billion, partly offset by the impact of sterling weakness. The underlying decrease was due mainly to a significant one-off decrease in intra-group balances, whilst one banking group consolidated internally and as a result there are now 33 deposit-taking licence holders.

“The increases in fund statistics were generally even across the board. The total number of regulated funds increased by 21 over the period and there was a £5 billion increase in the NAV of funds under administration. For the investment management sector, whilst one entity has transferred its business to another part of its group, part of that loss in the value of funds under investment management has been mitigated by an increase in funds reported by most other investment managers.

“Overall these figures highlight good performance from our finance industry sectors. Jersey’s funds sector is doing particularly well and the private placement route into the EU remains a very attractive option for Fund Managers based outside the EU. ESMA recently issued a consultation paper on whether the AIFMD passport should be extended to third countries and Jersey Finance is co-ordinating a response to the paper with the Jersey Funds Association.’’