Jersey's funds industry reaches record levels

Friday 27 February 2015

The latest figures for all sectors of Jersey’s finance industry reflect an overall good performance, with the funds sector once again leading the way and recording its fourth consecutive quarter of growth to reach its highest level in seven years.

The statistics show that the net asset value of regulated funds increased by £23.5 billion in the final quarter of 2014, and by around 19% year-on-year, to reach £228.9 billion, the highest figure since December 2008. This was led by another strong performance in the alternative asset classes, with the value of hedge fund business growing by 46% year-on-year, real estate business growing by 32% to its highest ever level, and private equity maintaining a steady increase of 5% in the same period.

Although bank deposits fell slightly they remain stable, whilst now almost 19% of deposits emanate from the Middle and Far East combined. The company formation rate for the final quarter of 2014 was at its highest since June 2008 with 772 company formations.

The latest statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31 December 2014. Headline figures include:

• The total value of banking deposits held in Jersey decreased by £4.2bn from £136.6bn to £132.4bn during the fourth quarter of 2014 representing an annual decrease of just over 5%.
• The net asset value of regulated funds under administration increased by £23.5bn from £205.4bn to £228.9bn during Q4 2014, a year-on-year increase of 19%.
• The total number of regulated collective investment funds increased by 19 from 1,304 to 1,323 over the quarterly period, whilst as at end of the fourth quarter of 2014, there were 123 active unregulated funds (of the 208 unregulated funds notified to the Commission).
• The value of total funds under investment management decreased slightly by £0.5bn from £21.3bn to £20.8bn during the fourth quarter of 2014.
The total number of live companies on the register stood at 32,717 at the end of Q4 2014, while there were 722 company formations in the final quarter of the year, the highest number since June 2008.

Geoff Cook, Chief Executive, Jersey Finance, said: “The latest figures for all sectors of Jersey’s finance industry reflect an overall good performance, with the funds sector leading the way and recording its fourth consecutive quarter of growth to reach its highest level in seven years. Bank deposits fell slightly but remain stable and almost 19% of deposits now emanate from the Middle East and the Far East combined.

“The figures for our funds industry make impressive reading. Not only has the value of funds business reached its highest level since 2008, the sizeable annual increase of almost 20% is particularly pleasing in a global fundraising environment that is still challenging.

“The total value of funds under investment management decreased slightly by £0.5bn from £21.3bn to £20.8bn during Q4 and the company formation rate for the final quarter of 2014 was at its highest since June 2008 with 772 company formations.’’