Channel Island's Uninspiring Fourth Quarter No Reason For Gloom - Jersey Finance

Anna Hallissey

26 February 2014

Despite Jersey's slight drop in figures during over the past year, Jersey Finance remains optimistic about the Channel Island’s performance.

Statistics released yesterday from the Jersey Financial Services Commission shows little change in most aspects of the island’s investment figures, only one of which increased.

While the value of total funds under investment management increased slightly from £21.8 billion to £22.2 billion during the final quarter of 2013, many other aspects saw a mild drop.

The net asset value of funds under administration stood at £192.1 billion, a slump from £194.8 billion the previous quarter.

Jersey Finance blames the drop on the decline seen in three metal commodity funds, leading to a hefty £1.3 billion in net asset values. Furthermore, a change of ownership saw a non-Jersey fund relocate to a different jurisdiction, and one Jersey fund underwent a restructure.

Considering these three possible triggers, the firm is adamant that when last quarter’s figures are viewed in parallel to results from the same period last year, that they indicate “impressive resilience and stability”.

“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,” Geoff Cook, chief executive said in a statement.

Other dips included banking deposits held in Jersey. They dropped from 4 per cent from £145.2 billion to £139.9 billion last quarter, attributed to a single traceable movement of business.

Additionally, the total number of live companies stood at 32,749, a reduction of 793. This comes after a jump in live companies between 2012 and 2013.

The figures weren’t solely a bunch of financial stumbles; Jersey has 100 companies listed on stock exchanges worldwide, from the London Stock Exchange spreading all the way to Hong Kong, Tokyo and the US.

It is not only Jersey Finance who is hopeful about the island’s long-term prospects over the next year. In Jersey’s Business Tendency Survey, firms reported the highest level of optimism about future business activity, profitability and employment since 2011.