Despite falls in the level of bank deposits held in Jersey and the amount of funds business being undertaken, there are signs that some confidence is being re-instilled into the market, according to the latest statistics for Jersey’s finance industry.
The statistics collated and prepared by the Jersey Financial Services Commission for the period ending December 31st 2009 show that bank deposits decreased by £40.9 bn (-19.8%) over the 12 month period to £165.2 bn, and by -2% compared to the figure for September 30th 2009, which reflects the global downturn.
Specialist funds, including hedge, private equity and real estate funds, have grown on the previous quarter by £2 bn to now account for just over 70% of the total value of funds under administration, showing early signs of recovery. Whilst the net asset value of funds has decreased by 31% when compared to the same period last year, the value is up slightly (1.9%) on the previous quarter to now stand at £166.2 bn. Although specific data relating to Unregulated Funds is not currently available, a total of 61 such funds were established by the end of 2009, an increase of 3.4% from the previous quarter.
The headline figures from the statistics are as follows:
- Banking deposits decreased by £40.9bn (-19.8%) during the year 2009 from £206bn to £165.2bn.
- The Net Asset Value of Funds under administration decreased by £75bn (-31%) during the last year from £241.2bn to £166.2bn. The total number of funds decreased by 178 (-12%) to 1,294.
- The value of Funds under investment management increased from £18.4bn to £19.7bn (4.4%) during the year 2009.
- The total number of live companies on the register decreased by 2,005 (-6%) during 2009 from 33,395 to 31,390.
Geoff Cook, Chief Executive of Jersey Finance commented:
“2009 has been an extremely challenging year for the financial services industry worldwide and, inevitably, the effects of the economic downturn have impacted Jersey’s finance industry. The decrease of almost 20% for Jersey’s banking deposits during 2009 is hardly surprising given the very low level of interest rates throughout the year. The funds sector has also experienced a challenging year, with new deals in particular being less forthcoming given the uncertainty in the markets globally.
“Overall though, we must be confident that the statistics in their raw form do not represent the whole picture. Funds values are beginning to show signs of recovery and there has been a modest increase in assets under investment management. Employment numbers in the finance sector continue to hold up well, with only a 2% decrease in numbers shown by the manpower statistics, considerably below that of our onshore colleagues. Whilst tough, 2009 gave rise to some excellent accolades for Jersey, such as the IMF report, which can only boost future revenue streams during 2010. It is therefore crucial that we continue to maintain momentum and promote Jersey actively in key markets this year.”
Richard Thomas, Chairman of the Jersey Funds Association, added:
“That there are small increases in the level of funds under administration and in the total number of funds on the previous quarter gives Jersey’s funds industry cause for some optimism as we move into 2010. The continued performance of the specialist funds sector reinforces Jersey’s attraction as a centre for alternative funds, whilst we are also seeing increased anecdotal evidence of hedge fund managers considering relocating to Jersey from other centres. Ahead of the Jersey Funds Conference in London on 30th March, this is particularly positive news.”
For further information, please contact Adam Riddell, Crystal Public Relations, on tel. +44 (0) 1534 639505 or e-mail firstname.lastname@example.org