The principal sectors of Jersey’s finance industry showed strong growth in the first three months of 2011, with rises in new fund launches and the value of funds under administration providing particularly positive news for Jersey’s funds sector.
Geoff Cook, Chief Executive of Jersey Finance Limited, was encouraged by the strong performance for the first quarter of 2011, highlighting that the value of funds being administered in Jersey is now at its highest since June 2009 and that the total number of funds has increased by the largest amount for the first quarter of any year since 2008.
Furthermore, bank deposits held in Jersey originating from the Far East and Middle East continue to increase and now stand at £10.4bn and £20.2bn respectively, representing a combined total of 18% of Jersey’s level of deposits and reflecting the value of recent promotional activity in Hong Kong, Greater China and the United Arab Emirates.
The statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31st March 2011. The headline figures are as follows:
- Banking deposits increased by £4.9bn (3%) during the first quarter of 2011 from £161.6bn to £166.5bn.
- The Net Asset Value of funds under administration increased by £9.9bn (5.4%) from £184.7bn to £194.6bn during the first quarter of 2011. The total number of regulated funds increased by 40 from 1,324 to 1,364 from January to March.
- The total number of unregulated funds increased by 3 (2.4%) to 125 during the first quarter of 2011.
- The value of funds under investment management decreased by 0.2% compared to the previous quarter from £21.4bn to £21.3bn.
- The total number of live companies on the register increased by 276 from 32,722 to 32,998 during the first quarter of 2011.
Geoff Cook, Chief Executive of Jersey Finance, commented:
‘’Jersey’s finance industry performed well during the first quarter of 2011, with growth of 3% in the value of banking deposits and 5% in the value of funds under administration. It is extremely encouraging to see that growth is reported in line with the strategic direction Jersey has taken as a jurisdiction, to position itself as a specialist centre for alternative funds business and to focus on building links with international markets.
“The alternative asset class, including real estate, hedge and private equity funds, now represents 58% of the total net asset value of funds under administration. The fact that the total number of regulated funds increased by 40 – the largest increase in funds for the first quarter of any year since 2008 – is significant too, reflecting a rise in new fund launches and demonstrating added confidence in our funds sector at the beginning of the calendar year. Meanwhile, an analysis of the residence of depositors shows the importance of some of Jersey’s newer markets.
“Our focus on inward investment and our clear commitment to new markets will carry on and we are confident Jersey will continue to reap the rewards of this strategy.”
Nigel Strachan, Chairman of the Jersey Funds Association, added:
“That there has been a strong uptake of new fund launches at the beginning of 2011 is a good sign for the funds industry, as this reflects a real confidence in Jersey’s funds capabilities following a period of uncertainty in the global markets. It is also encouraging that unregulated funds continue to grow in popularity amongst sophisticated investors and that Jersey is retaining a healthy alternative investments funds sector. These trends and this rate of growth we expect to maintain through 2011.”