The latest figures for all sectors of Jersey’s finance industry illustrate a solid performance during 2013 against a challenging global economic, regulatory and political backdrop, as firms report an encouraging and optimistic start to 2014.
The figures show that the net asset value of funds administered in Jersey decreased slightly over the quarter to stand at £192.1bn, a figure almost identical to the previous year. The sophisticated end of the funds market performed most strongly, with unregulated funds continuing to grow and private equity and real estate fund values showing slight quarterly increases. The value of funds under investment management increased year-on-year by £1bn.
Meanwhile, at the end of 2013 there were 100 Jersey companies listed on stock exchanges worldwide, including 48 on the London Stock Exchange AIM market and 40 on the main market, as well as on Euronext, the Luxembourg Stock Exchange, the Hong Kong Stock Exchange, the Toronto Stock Exchange and the NASDAQ, with a total market capitalisation of £168.6bn.
Within the banking sector, the final quarter of 2013 saw Jersey deposits decrease by around 3.6% to stand at £139.9bn, due to a single traceable movement of business. Deposits emanating from the Middle and Far East continued to represent around 17% of the total value of deposits in Jersey.
There were 635 company incorporations in the third quarter of 2013, resulting in a total of 32,479 live companies on Jersey’s company register, a very similar figure to December 2012.
The latest statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31st December 2013. Headline figures include:
- The value of total funds under investment management increased by £0.4bn from £21.8bn to £22.2bn during the fourth quarter of 2013.
- The net asset value of funds under administration decreased by £2.7bn from £194.8bn to £192.1bn during Q4 2013. The total number of regulated funds decreased by 14 from 1,348 to 1,334 over the same period. Consent was granted in respect of 25 COBO only Private Placement funds with a reported total NAV of £334m. The total number of unregulated funds increased by 4 from 193 to 197 during the quarter.
- The total number of live companies decreased by 793 to 32,479 at the end of Q4 2013.
- The total value of banking deposits held in Jersey decreased by £5.3bn from £145.2bn to £139.9bn during the last quarter of 2013.
In addition, the latest figures from Jersey’s Business Tendency Survey suggest that the finance sector is positive about its long-term prospects at the start of 2014, with firms reporting the highest levels of optimism about future business activity, profitability and employment since 2011.
Geoff Cook, Chief Executive, Jersey Finance, commented:
“The quarterly decrease in the NAV of funds under administration can be explained by three main events. Firstly, the decline seen in three metal commodity funds led to a reduction of £1.3bn in the reported NAV over the period. Secondly, one non-Jersey fund moved to another jurisdiction due to a change of ownership. And thirdly, one Jersey fund underwent a restructure. Compared to the same period the year before, however, the figures indicate impressive resilience and stability.
“In the banking sector, the decrease related to an outflow of Swiss business and the impact of the strength of sterling, which caused the sterling value of foreign currency denominated deposits to drop by circa £2.4bn.
“The above figures are mainly due to one off events and with individual businesses reporting busy and successful months, there is reason to be optimistic. The strength of the Jersey proposition across sectors is attractive and continues to receive full support from investors worldwide. A key example is, of course, the AIFMD and Jersey’s unique position as the first third country to offer a fully compliant opt-in AIFMD regime as well as private and flexible solutions under the existing regime. Examples like this demonstrate why Jersey is, and will remain, the first choice jurisdiction for many gatekeepers and investors alike.
“Meanwhile, we have included Jersey’s company listings figures, which highlight Jersey’s position as a leading jurisdiction for high value listings on the London Stock Exchange markets and on exchanges around the world.”