The number of expert funds has increased by a further 18 in the last quarter and the first unregulated funds, though not included in the statistics, have also been established.

The total number of funds stands at 1,370, up from 1,311 in December, and 170 more than a year ago.

However the net asset value of funds during the same period has remained at GBP246bn as a result of the inevitable fluctuations in asset valuations, one of the repercussions of the credit crunch.

Similar fluctuations were experienced in the banking sector in the period January to March 2008, when deposit levels dropped by GBP2.4bn to GBP209.9bn, equivalent to a 1.1% fall in the same period.

The headline figures from the statistics compiled by the Jersey Financial Services Commission for the three month period ending March 2008 are as follows:

• Banking deposits decreased by GBP2.4bn or 1.13% the first quarter of 2008 from GBP212.3bn to GBP209.9bn;
• The NAV of Funds as at 31st March 2008 remained stable at GBP246.0bn. The total number of Funds increased by 4.5% to 1,370 with a total number of 3,076 separate investment pools;
• The NAV of Expert Funds grew by GBP1.5bn (2.6%) to GBP59.8bn. The number of Expert Funds increased by 18 (4.6%) to 401 this first quarter; and
• The total value of funds under Investment Management decreased by GBP3.8bn during the quarter.

Geoff Cook, chief executive of Jersey Finance commented:

"Although the reduction in banking deposits and the stabilisation of the total Net Asset Value (NAV) of Funds during the first quarter of this year are a reaction to the effects of the global slowdown, there is plenty of evidence that this volatility is not affecting the flow of new business."

He continued: "Markets world-wide have struggled and Net Asset Values have held up reasonably well considering the conditions. The FTSE 100 capital return decreased by 11.7% during the first quarter and the FT World equities Index fell by 9.2% over the first quarter of 2008. Inevitably, the slowdown in the markets is reflected in these latest figures," going on to explain:

"However, it is encouraging to see that when looking at volumes, business streams have gone up with the total number of Funds increasing by 4.5%. The number of expert funds is still rising, though more slowly, and the first unregulated funds, which were permitted from February this year, have already been established."

"On the banking front, there has been a reduction because some deposits that are booked on balance sheets at banking operations in Jersey have been moved elsewhere within their Groups, a symptom of market conditions rather than any reflection on Jersey’s appeal as a banking centre."

"However, more positively, the banks tell me that underlying banking business has shown an increase and new deposit business is still being attracted here, which is very encouraging in the current climate," he concluded.

Richard Thomas, Chairman of the Jersey Funds Association, added that:

"It is good to see that in a period during which the investment industry has had to contend with difficult market conditions and influences, the Jersey market has continued to see the establishment of new investment structures and the addition of new pools of assets to existing structures at a steady rate, maintaining the consistent growth trend of the last year."