Funds value passes £200 billion mark

Wednesday 10 September 2014

The value of the Island’s funds business has exceeded the £200 billion mark for the first time since June last year.

The latest statistics, collated and prepared by the Jersey Financial Services Commission for the three-month period ending 30 June, 2014, show stability and signs of new growth, led by the funds sector. Although bank deposits fell slightly, they remain stable Geoff Cook, Chief Executive at Jersey Finance Limited, described the picture overall as showing clear signs of recovery.

He said: “The increase in funds business is due to the general improvement in market conditions, specifically in property fund valuations. The increase also takes into account a number of new fund launches established in the last few quarters reporting for the first time, while the reduction in the number of regulated funds relates to relinquished certificates for funds which have become inactive. The small decrease in bank deposits is mainly due to the significant strengthening of sterling, which decreased the sterling value of foreign denominated deposits by around £2.2 billion.”

Headline figures for the second quarter of the year include:

• The total value of banking deposits held in Jersey decreased by £0.3 billion from £139.2 billion to £138.9 billion during the second quarter of 2014.
• The net asset value of funds under administration increased by £5.1 billion from £195.3 billion to £200.4 billion during Q2 2014.  The total number of regulated collective investment funds decreased by 54 from 1,337 to 1,283 over the same period.
• Consent was granted in respect of 27 COBO only Private Placement funds with a reported total NAV of £593 million.
• The total number of unregulated funds increased by 3 from 199 to 202 during the second quarter.
• The value of total funds under investment management decreased slightly by £0.4 billion from £22.2 billion to £21.8 billion during the second quarter of 2014.
• The total number of live companies increased by 506 to 33,207 at the end of Q2 2014.

Mr Cook said: “It was encouraging to see an increase in the number of Jersey companies, now the highest number of company incorporations since 2008 and with the recent introduction of innovations to our companies law on the statute, Jersey is an even more attractive proposition for investment structuring, asset holding and a wide variety of other purposes. The strength of the industry continues to be in its diversity and it is very encouraging to see clear signs of recovery across a range of sectors.”