Press Release - 27 May 2005

The Jersey Financial Services Commission has today, 27 May 2005, issued its quarterly report for the period 1 January 2005 to 31 March 2005.

Headlines:

• Bank deposits increased by £4.0 billion during the first quarter.
  
• The value of collective investment funds managed in the Island stood at £103.9 billion at the end of the first quarter. This represents an increase of £4.3 billion over the same quarter in 2004.
  
• The number of collective investment funds and COBO funds rose during the quarter from 833 to 870.
  
• The total value of funds under management (Class B of the Financial Services (Jersey) Law 1998) increased by £2.1 billion during the first quarter.
  
• Company incorporations for the first quarter totalled 608

Bank Deposits

At the end of the first quarter bank deposits stood at £162.2 billion. This was an increase of £4.0 billion, or 2.6%, over the 2004 year-end figure.

Sterling bank deposits increased by £1.2 billion and currency bank deposits by the equivalent of £2.8 billion. Whilst currency fluctuations accounted for part of the £2.8 billion increase, the majority came from an actual increase in currency deposit balances.

Appendix A provides more information on the residency of depositors and the split between sterling and currency balances.

The number of banking licences at 31 March 2005 was 48.

Figure 1

BANK DEPOSITS
(£ BILLION) AS AT 31 MARCH FOR EACH OF THE PAST FOUR YEARS

Funds

The Collective Investment Funds (Jersey) Law 1998 (the “Law”)
The Control of Borrowing (Jersey) Order 1958 (the “Order”)

As in previous quarters, hedge funds have continued to grow both in number and in value. The number of hedged/alternative investment funds now stands at 261 with a total Net Asset Value (“NAV”) of £22.7 billion, an increase of £1.8 billion on the previous quarter. The growth in hedge funds was however, in part, offset by a drop in bond and equity funds caused by a net reduction in the number of private funds and, in particular, the transfer of a Jersey public fund which merged into a Luxembourg fund during the quarter. The NAV of this fund was in excess of £1 billion.

Expert funds also continued grow in popularity. The first quarter of 2005 saw 25 new expert funds established, taking the total number of funds at 31 March 2005 up to 60. Total NAV for expert funds is now in excess of £5 billion which represents a 34.2% increase on the previous quarter. The volume of applications for new expert funds continues to increase month on month.

Appendices C, D and E provide more analysis of fund statistics.

Company incorporations

The total number of incorporations during the first quarter was 608, an almost identical figure to that in the corresponding quarter of 2004.

The number of ‘fast track’ incorporations for the quarter was 249 and the number of normal company incorporations was 359. (See Notes to Editors.)

During the first quarter of 2005, against their self-imposed target of 95%, the Registry recorded a 99.4% rate for normal two-day incorporations and a 98.8% rate for fast track incorporations. (See Notes to Editors.)

Figure 2 illustrates the number of new company incorporations during each of the past four years. (See also Appendix F.)

Figure 2

TOTAL NEW COMPANY INCORPORATIONS
IN THE FIRST THREE MONTHS OF THE PAST FOUR YEARS

Investment Business

Total funds under management (Class B of the Financial Services (Jersey) Law 1998) stood at £36.5 billion at 31 March 2005, an increase of £2.1 billion (6.2%) during the quarter.

As at 31 March 2005, the total number of clients of investment managers was 20,229.

Insurance Business

During the first quarter there were four new Category A licences issued.

The total number of insurance licences at 31 March 2005 therefore stood at 168, of which 156 were Category A and 12 Category B (see Appendix G).

The regulation of general insurance broking came into force on 21 January 2005. To date, the Commission has received 68 applications, of which 40 have been fully registered while the remaining 28 have transitional status while various outstanding issues are clarified.

Figure 3

ALL INSURANCE LICENCES AS AT 31 MARCH
FOR EACH OF THE PAST FOUR YEARS

Conclusion

David Carse, Director General of the Commission, commenting on the quarterly statistics said today, ”The increase during the quarter in bank deposits and funds under management is encouraging. Business in the funds sector also remains buoyant and, in particular, the continuing growth in Expert Fund business bodes well for the future of this sector.”

For further information:

David Carse
Director General
Jersey Financial Services Commission

Telephone: +44(0) 1534 822011
Facsimile: +44(0) 1534 822001
Email: to Mr Carse's PA: l.johns@jerseyfsc.org

Notes to Editors:

1. Normal company incorporations are completed within two working days whilst fast track incorporations are completed within two hours.

2. Published timescales were introduced the week commencing 1 January 2000, and the Registry has worked to those targets throughout the last year.

Appendix A

Annual growth in Banks and Bank Deposits to date. £ Billions

Appendix B

ANALYSIS OF DEPOSITS - 31 MARCH 2005
ALL AMOUNTS IN £ THOUSANDS

Appendix C

COLLECTIVE INVESTMENT FUNDS (JERSEY) LAW 1988 ("THE LAW")
CONTROL OF BORROWING (JERSEY) ORDER 1958 (THE "ORDER")

1. SUMMARY OF STATISTICAL SURVEY OF FUNDS SERVICED IN JERSEY AS AT 31 MARCH 2005

From 1 October 2003 we have excluded from the figures, the collective investment funds for which a permit was issued under the Law for the function of distributor or similar minor function. However, we now collect statistics on the private schemes administered in the Island, which, although not requiring a permit under the Law, require consent under the Order (such funds are termed “COBO funds”). Funds regulated under the Law are referred to herein as “CIFs”.

COLLECTIVE INVESTMENT FUNDS (JERSEY) LAW 1988
CONTROL OF BORROWING (JERSEY) ORDER 1958
SUMMARY OF STATISTICAL SURVEY OF FUNDS SERVICED IN JERSEY AS AT 31 MARCH 2005

Analysis of CIFs and COBO Funds

Appendix D

CIFs AND COBOs - ANALYSIS BY INVESTMENT POLICY CODES

Appendix E

COLLECTIVE INVESTMENT FUNDS (JERSEY) LAW 1988 ('THE LAW')
CONTROL OF BORROWING (JERSEY) ORDER 1958 (THE "ORDER")
SUMMARY OF STATISTICAL SURVEY OF FUNDS SERVICED IN JERSEY AS AT 31 MARCH 2005

Analysis by Class

Appendix F

Appendix G