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Jersey reports impressive growth in funds at the end of 2010

The Jersey funds industry continued to perform strongly during the final quarter of 2010 with increases both in the value of funds under administration and funds under investment management.

While the markets remain volatile, reflected in a 3% decrease in Jersey’s banking deposits during the final quarter, Geoff Cook, Chief Executive, Jersey Finance Limited, remains optimistic for the business opportunities that lay ahead in 2011 and beyond.

The statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending December 31st  2010. The headline figures from the statistics are as follows:

Banking deposits decreased by GBP5.5bn (3.3%) during the last quarter of 2010 from GBP167.2bn to GBP161.6bn. The Net Asset Value of funds under administration increased by GBP5.8bn (3.2%) from GBP178.9bn to GBP184.7bn during the last quarter of 2010. The total number of regulated funds decreased by three from 1,327 to 1,324 from September to December, but over the full year increased by 30 (2.3%).

The total number of unregulated funds increased by 17 (16.2%) to 122 during the last quarter of 2010, however over the last 12 months grew by 61 (100%). The value of funds under investment management increased by 3.7% compared to the previous quarter from GBP20.6bn to GBP21.4bn. The total number of live companies on the register decreased by 912 from 33,634 to 32,722 during the fourth quarter of 2010.

‘"2010 was a year of new business opportunities for Jersey," says Cook. "Our funds sector performed particularly well during 2010. We have seen impressive growth in the number of unregulated funds reporting year on year growth of 100%.  In addition, the number of regulated funds grew by 2.3% during 2010. This new business growth is driven by the alternative asset classes and demonstrates Jersey’s status as a first choice centre for alternative funds.

Throughout 2010 our alternative investment funds industry has also been intensively engaged on the AIFM Directive and we were extremely pleased with the outcome of the November vote creating certainty for Jersey’s successful alternative funds industry.

During 2010 we have seen fluctuations in the banking deposits and this has continued into the final quarter where the decrease  relates to the restructuring of group deposits from overseas banks in Jersey.

Growth was also reported in the investment management sector in Jersey and the net asset value of the total assets under investment management increased by 8.7% during 2010.

Looking ahead, it is certain that 2011 will be abundant with opportunities and challenges. Our finance industry, however, is looking well beyond 2011 and our prime focus is on attracting new business from key markets such as the UK and Europe and in addition we are making great progress in newer markets such as China, India, the Middle East and Russia.  These markets will drive our jurisdiction’s success over the next decade and strong foundations are now in place to attract quality work from these regions.’’

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