Jersey’s funds sector shows strong growth during first quarter of 2012

The latest figures tracing the performance of Jersey’s finance industry reveal particularly strong growth in its funds sector during the first quarter of 2012, with a 3.5% increase in the net asset value of funds under administration and a total of 1,412 funds registered, the highest figure since 2009.

In further good news for the funds sector, the total number of unregulated funds, geared towards sophisticated, professional and institutional investors, also increased by an impressive 8.5% whilst the number of regulated funds grew by 1.4%.       

The statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31st March 2012. Headline figures across all sectors of the industry include:

• The total sterling value of banking deposits held in Jersey fell by 2.6% (£3.2bn) from £158.1bn to £154.9bn, although this change was largely down to currency movements.
• The net asset value of funds under administration increased by £6.8bn from £189.4bn to £196.2bn (3.5%) and the total number of regulated funds increased by 20 from 1,392 to 1,412 (1.4%) over the same period.
• The total number of unregulated funds increased by 13 from 153 to 166 (8.4%) during the first quarter.
• The value of total funds under investment management increased from £20.8bn to £21bn (0.9%) during the first quarter of 2012.
• The total number of live companies stood at 32,816 at the end of March 2012.

Geoff Cook, Chief Executive of Jersey Finance, commented:

“There is no doubt that 2012 will be a decisive year.  Market participants are preparing for the worst with the Eurozone crisis taking on worrying proportions and economic uncertainty continuing to have a negative impact on growth. 

The first quarter of 2012 saw banking deposits decrease by 2.6%, although this decrease can largely be explained by currency movements, with a relatively stable underlying position. 

The funds sector, meanwhile, performed well and saw a 3.5% increase in the net asset value of funds under administration, the total number of regulated funds grew by 1.4% and the total number of unregulated funds increased by 8.4%. Regulated fund stocks at 1,412 registered the best performance since 2009. 

The investment management sector saw a 1% increase in the value of assets under investment management during the first quarter of 2012 and 646 new companies were formed.

In these uncertain times there is a strong demand from investors for high quality safe harbours like Jersey and we are well placed to benefit from this demand.  We believe that Jersey’s long-term perspective, stability and continued drive for innovation are extremely attractive to investors worldwide.’’