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Press Release - 30 June 2005

The Jersey Financial Services Commission has today, 25 August 2005, issued its quarterly report for the period 1 April 2005 to 30 June 2005.

Headlines:

  • Bank deposits increased by £ 10.8 billion (6.6%) during the quarter, and by £15.4 billion (9.7%) over the year to 30 June 2005.
  • The value of collective investment funds managed in the Island increased by £8.7 billion (8.4%) during the quarter, and by £14.4 billion (14.6%) over the year to 30 June 2005.
  • The total value of funds under management (Class B of the Financial Services (Jersey) Law 1998) increased by £ 0.4 billion (1.1%) during the quarter.
  • The number of expert funds rose from 60 to 79 an increase of 31%.
  • Company incorporations for the second quarter totalled 697, an increase of 89 (14.6%) over the quarter
Bank Deposits

At the end of the quarter bank deposits stood at £173.0 billion (see Appendix A). This was an increase of £10.8 billion, or 6.6%, over the first quarter.

Sterling bank deposits increased by £1.4 billion and currency bank deposits by the equivalent of £9.4 billion. Whilst exchange rate fluctuations accounted for £3.1 billion of the £9.4 billion increase, the majority came from an actual increase in currency deposit balances.

Appendix B provides more information on the residency of depositors and the split between sterling and currency balances. The main increases by residence of depositors were as follows:

U.K., Guernsey & I.O.M etc. £3.4 billion
European Non EU members £2.8 billion
North America £1.9 billion

The number of banking licences at 30 June 2005 was 50.

Figure 1

BANK DEPOSITS
(£ BILLION) AS AT 30 JUNE 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”)

The value of funds in the Island has continued to grow in the last quarter reaching a new record high of £112.6 billion. This is an increase of £8.7 billion (8.4%) over the previous quarter. The main areas of growth have been property funds, up by £3.3 billion, and other specialist funds, up by over £4.1 billion. There has also been an increase of £1.3 billion in traditional funds such as equity, bond and money market funds.

The number of expert funds continued to grow significantly to a total of 79 from 60 in the previous quarter. The NAV of expert funds rose to £9.2 billion, which is an increase of £4 billion over the previous quarter.

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


Company incorporations

The total number of incorporations during the quarter was 697, an increase of 19% over the corresponding period in 2004. Over the year to 30 June 2005, a total of 2554 companies were incorporated, an increase of 7.7% over the previous year.

The number of ‘fast track’ incorporations for the quarter was 290 and the number of normal company incorporations was 407. (See Notes to Editors.)

During the second quarter of 2005, against their self-imposed target of 95%, the Registry recorded a 99.7% rate for normal two-day incorporations and a 99.4% 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 £36.9 billion at 30 June 2005, an increase of £414 million (1.1%) during the quarter.

As at 30 June 2005, the total number of clients of investment managers was 21,513.

Insurance Business

The total number of insurance licences at 30 June 2005 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 72 applications, of which 62 have been fully registered while the remaining 10 have transitional status while various outstanding issues are clarified.

 


Figure 3

ALL INSURANCE LICENCES AS AT 30 JUNE
FOR EACH OF THE PAST FOUR YEARS

 

Conclusion

David Carse, Director General of the Commission, commenting on the quarterly statistics said today, “The increase in business volumes across all sectors maintains the trend seen in the first quarter of the year, and reflects the continued confidence that clients and financial service businesses have in Jersey.”

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

DATE NO OF BANKS STERLING CURRENCY TOTAL
30 Jun 1999 77 38.245 70.774 109.019
30 Sep 1999 77 38.418 69.003 107.421
31 Dec 1999 77 37.883 70.522 108.405
31 Mar 2000 73 39.250 69.992 109.242
30 Jun 2000 73 40.862 74.217 115.079
30 Sep 2000 73 38.933 77.001 117.934
31 Dec 2000 74 39.827 77.423 117.250
31 Mar 2001 70 41.227 80.949 122.176
30 Jun 2001 70 42.377 83.250 125.897
30 Sep 2001 70 42.115 86.955 129.069
31 Dec 2001 64 44.057 88.116 132.173
31 Mar 2002 61 43.324 91.716 135.041
30 Jun 2002 62 43.136 89.307 132.443
30 Sep 2002 62 43.213 93.269 136.482
31 Dec 2002 59 47.489 91.840 139.329
31 Mar 2003 55 47.688 107.931 155.619
30 Jun 2003 55 47.414 109.008 156.421
30 Sep 2003 55 47.538 108.256 155.794
31 Dec 2003 55 47.307 101.945 149.252
31 Mar 2004 51 49.877 105.821 155.698
30 Jun 2004 51 49.923 107.717 157.640
30 Sept 2004 55 50.707 108.464 159.171
31 Dec 2004 51 51.366 106.783 158.149
31 Mar 2005 48 52.621 109.580 162.201
30 Jun 2005 50 54.003 119.015 173.018

Appendix B

ANALYSIS OF DEPOSITS - JUNE 2005
ALL AMOUNTS IN £ THOUSANDS

Residence of Depositors Sterling Currency Total
Jersey Resident Depositors 6,832,157 3,103,700 9,935,857
Jersey Financial Intermediaries etc 4,677,873 5,326,839 10,004,712
U.K., Guernsey & I.O.M. + unallocated Jersey,UK etc 24,234,174 24,352,349 48,586,523
SUBTOTAL 35,744,204
32,782,888 68,527,092
Other EU Members 3,636,526 11,837,165 15,473,691
European Non EU Members 5,537,868 36,392,009 41,929,877
Middle East 970,271 8,147,462 9,117,733
Far East 2,394,793 6,713,033 9,107,826
North America 1,984,204 19,858,158 21,842,362
Others, Unallocated non Jersey,UK etc 3,735,245 3,284,945 7,020,190
SUBTOTAL 18,258,907 86,232,772 104,491,679

OVERALL TOTAL OF DEPOSITS
54,003,111 119,015,660 173,018,771

 

Percentage of Total Sterling Currency Total
Jersey Resident Depositors 3.9% 1.8% 5.7%
Jersey Financial Intermediaries etc 2.7% 3.1% 5.8%
U.K., Guernsey & I.O.M. + unallocated Jersey,UK etc 14.0% 14.1% 28.1%
SUBTOTAL 20.7%
18.9%
39.6%
Other EU Members 2.1% 6.8% 8.9%
European Non EU Members 3.2% 21.0% 24.2%
Middle East 0.6% 4.7% 5.3%
Far East 1.4% 3.9% 5.3%
North America 1.1% 11.5% 12.6%
Others, Unallocated non Jersey,UK etc 2.2% 1.9% 4.1%
SUBTOTAL 10.6%
49.8%
60.4%
Total 31.2%
68.8%
 

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 30 JUNE 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”.

Date Total NAV
£ Million
Number
of Funds
Total No.
of Separate Pools
31 December 2003 102,521 602 2,142
31 March 2004 99,561 686 2,072
30 June 2004 98,227 678 2,124
30 September 2004 96,883 769 2,208
31 December 2004 104,110 833 2,214
31 March 2005 103,871 870 2,289
30 June 2005 112,610 899 2,299

COLLECTIVE INVESTMENT FUNDS (JERSEY) LAW 1988
CONTROL OF BORROWING (JERSEY) ORDER 1958
SUMMARY OF STATISTICAL SURVEY OF FUNDS SERVICED IN JERSEY AS AT 30 JUNE 2005

Analysis of CIFs and COBO Funds

Date Fund
Type
Open/
Closed
Total NAV
£ Millions
Number
of Funds
Total No. of Separate Pools
30 June 2005 CIFs
Closed
27,758
232
309
30 June 2005 CIFs
Open
68,022
432
1,721
 
CIF Sub Total
95,780
664
2,030
30 June 2005 COBO Funds
Closed
14,497
189
210
30 June 2005 COBO Funds
Open
2,333
46
59
 
COBO Sub Total
16,830
235
269
 
Quarter Total
112,610
899
2,299

Appendix D

CIFs AND COBOs - ANALYSIS BY INVESTMENT POLICY CODES

Investment Policy   Number of Single Class Funds   Number of Umbrella Sub-funds Sales £ Millions   Repurchases £ Millions   NAV £ Millions
       
       
       
                               
B01 - Bond-Global 4   64   1,0365   770   4,072
                               
B02 - Bond-UK Debt 3   21   103   142   2,061
                               
B03 - Bond-US Debt 0   29   151   279   5,615
                               
B04 - Bond-Europe 3   24   905   445   2,146
                               
B05 - Bond-Other 6   41   308   160   3,513
                               
Sub Total Bond     16   179   2,503   1,796   17,407
                               
                               
E01 - Equity-UK 22   25   223   308   4,639
                               
E02 - Equity-Europe (Including UK) 4   31   204   335   2,731
                               
E03 - Equity-Europe (Excluding (UK) 12   14   225   148   1,992
                               
E04 - Equity-US (North America) 6   35   813   828   4,216
                               
E05 - Equity-Japan 3   13   120   162   1,284
                               
E06 - Equity-Far East (Including Japan) 4   11   21   31   602
                               
E07 - Equity-Far East (Excluding Japan) 6   13   31   54   687
                               
E08 - Equity-Global Emerging Markets 7   6   25   62   720
                               
E09 - Equity-Global Equity 25   96   835   827   8,316
                               
E10 - Equity-Other 30   48   1,312   856   5,211
                               
Sub Total Equity     119   292   3,809   3,611   30,398
                               
                               
X01 - Mixed-Mixed
Equity and Bond
21   167   474   227   5,929
                               
Sub Total Mixed     21   167   474   227   5,929
                               
                               
M01 - Money Market-Sterling 3   13   318   296   1,063
                               
M02 - Money Market-US Dollar 1   13   177   149   612
                               
M03 - Money Market-Euro 0   12   43   59   490
                               
M04 - Money Market-Swiss 0   5   9   13   219
                               
M05 - Money Market-Other 0   9   2   3   54
                               
Sub Total Money Market     4   52   549   520   2,438
                               
                               
S01 - Specialist-Venture Capital/Private Equity-Emerging Markets 15   0   82   1   288
S02 - Specialist-Venture Capital/Private Equity-other 146   10   168   7   8,504
S03 - Specialist-Real Property 84   17   2,475   32   15,932
S04 - Specialist-
Derivatives
3   2   22   0   31
                               
S05 - Specialist-Traded Endowment Policies 33   29   367   162   1,636
                               
S06 - Specialist-Hedge/Alternative Investment Funds 280   756   2,592   7,321   26,487
                     
                               
S07 - Specialist-Other 27   48   278   100   3,560
                               
Sub Total Specialist     587   862   5,984   7,623   56,438
                               
Grand Total       747   1,552   13,319   13,777   112,610

 

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 30 JUNE 2005

Analysis by Class

Fund Type Number of Funds Number of
Separate Pools
NAV £ Millions
Unclassified CIFs 577 1,890 84,179
Recognized CIFs 8 42 2,417
Expert CIFs 79 98 9,184
CIFs Sub Total 664 2,030 95,780
       
COBO Funds 235 269 16,830
       
CIFs & COBO Funds Total 899 2,299 112,610

Appendix F

QUARTERLY COMPANY INCORPORATIONS
 
31 March
30 June
30 September
31 December
2002
889
833
623
484
2003
533
442
550
631
2004
606
584
629
620
2005
608

697

   

Appendix G

ALL INSURANCE LICENCES ISSUED AS AT 30 JUNE
2002
179
2003
181
2004
170
2005
168

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