The value of investment funds in Bermuda have returned to their highest level since the end of 2008, according to the latest statistics released by the Bermuda Monetary Authority (BMA).

Despite the total number of funds based on the Island dropping by 12 to 943 in the first quarter of 2010 from 955 for the fourth quarter of 2009, the total net asset value of the funds rose by $24.96 billion to $172.26 billion from $147.30 billion over the respective period.

But the value has been in decline from $171.19 billion in Q4 2008, falling to $147.30 billion in the fourth quarter of 2009. The number of funds has similarly decreased from 1,133 to 955 over the same timescale.

Year-on-year net asset value rose by 8.39 percent or $13.34 billion, while the total number of funds plummeted by 14.82 percent or 164.

The BMA's regulatory update for June 2010 also revealed that total assets in the banking sector climbed 1.4 percent to $21.9 billion in Q1 2010 from $21.6 billion in Q4 2009 - its highest level since the second quarter of last year - mainly due to an increase in shareholders' equity attributable to Butterfield Bank's additional capital injection.

Total shareholders' equity for the sector climbed by 14.4 percent from $2.6 billion to $3 billion.

But total deposits fell 0.1 percent to $18.4 billion in the first quarter of this year - its lowest level for two quarters - attributed to a fall in demand for deposits, partially offset by advances in savings and time deposits of 6.5 percent and 0.6 percent respectively.

Within the total, deposits with other banks rose by 11.3 percent, while loans and advances climbed by one percent. Total investments decreased by five percent during the quarter and 6.3 percent year-on-year.

Customer deposit liabilities increased by 2.2 percent on a yearly basis, with a 9.5 percent rise in foreign exchange denominated savings deposits accounting for the quarter-on-quarter increase in savings deposits.

Total loans and advances were up by one percent over the first quarter and by 7.9 percent year-on-year, while BD$ denominated loans and advances increased by 1.1 percent during the quarter and 3.3 percent on a yearly basis.

Elsewhere the report divulged that 17 new insurers and intermediaries were registered in Bermuda in the first quarter of 2010, down slightly from 19 during the same period in 2009, but up on the three previous quarters following the challenging economic and market conditions experienced over the latter half of last year.

The total number of company applications approved for Q1 2010 (259), also, despite being down on Q4 2009 (320), was significantly higher than the figures for the first three quarters of last year.

This change was reflected in the number of exempted companies which became authorised over the same period, with 227 receiving their authorisations in the first quarter of 2010.

The country's money supply contracted by 2.37 percent during the first quarter and 1.44 percent on a yearly basis, driven by decreases in customer deposit liabilities, while Bermuda dollar notes and coins in circulation declined by 7.3 percent for the quarter, but remained stable year-on-year.

Banks and deposit companies reported an increase in the proportion of BD$ lending relative to BD$ deposit liabilities during the quarter from 134.1 percent to 139.1 percent, as did BD$ loans, advances and mortgages by 1.3 percent over the same time span and 3.5 percent year-on-year, compared to decreases in BD$ liabilities of 2.4 percent and 1.4 percent respectively.

Meanwhile the deficit in the net foreign currency position of the Bermudian banking and deposit taking sector dropped by $451 million over the quarter, largely due to a faster increase in total foreign currency assets of 1.8 percent versus a marginal rise in total foreign currency liabilities of 0.2 percent.

The Bermuda Stock Exchange's total market capitalisation (excluding funds) was moderately higher at $232 billion as of March 31, 2010, up $7 billion during the quarter, while the domestic market, which comprised $1.1 billion of this capitalisation, declined by 21 percent in Q1 2010 as a result of the dilutive impact of Butterfield Bank's recapitalisation in March.