Jersey’s Finance Industry recorded a 2.5 per cent increase in the size of the funds sector during the whole of 2011 though the global slowdown has caused a further reduction in the level of bank deposits.
Banking and funds industry figures for the final quarter of 2011 also showed a decrease compared to the previous quarter, though again the number of funds in the same period increased.
The latest statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31st December, 2011 and include year on year comparisons. The headline figures are as follows:
– The total sterling value of banking deposits held in Jersey decreased by £9.2bn from £167.3bn to £158.1bn during the last quarter of 2011. Currency movements accounted for £1bn of this decrease. During 2011 the value of banking deposits decreased by £3.5bn (2.2%) from £161.6bn to £158.1bn.
– The net asset value of funds under administration decreased by £4.3bn from £193.7bn to £189.4bn during Q4 2011. The total number of funds increased by 27 from 1,365 to 1,392 over the same period. During the year 2011 the total value of funds under administration increased by £4.7bn (2.5%) from £184.7bn to £189.4bn. The total number of funds increased by 68 (5.1%) during the year 2011.
– The total number of unregulated funds increased by 6 to 153 during the last quarter of 2011. The total number of unregulated funds increased by 31 (25%) during 2011 from 122 to 153.
– The value of total funds under investment management remained at £20.8bn during the last quarter of 2011.
– The total number of live companies stood at 32,508 at the end of December 2011.
Geoff Cook, Chief Executive of Jersey Finance, commented:
These figures are not unexpected given the continuing slowdown in the EU and the US and the view from economic commentators that, in the aftermath of the financial crisis we will continue to see slow and halting growth for sometime to come. Against this backdrop of economic uncertainty it is not surprising that we have seen some peaks and troughs in the performance of our key sectors.
Bank deposits are inclined to fluctuate from quarter to quarter but over the year the 2.2 per cent fall in deposits has been modest and more encouragingly we have welcomed a new banking entrant from the Gulf in the form of Abu Dhabi Commercial Bank while US based State Street, already a major brand presence in Jersey, also broadened its service offering into banking.
Our funds sector performed well year on year and reported a 2.5 per cent increase in the net asset value of funds under administration and a 5.1 per cent increase in the number of regulated funds. We also saw the number of unregulated funds increase strongly by 25 per cent during the year. In the context of the financial crisis therefore which has inevitably had a sustained impact, our industry continues to hold up well overall with several positive indicators for growth in place for 2012.’