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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

DATE NO OF BANKS STERLING CURRENCY TOTAL
31 Mar 1999 77 36.411 68.285 104.696
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

Appendix B

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

Residence of Depositors Sterling Currency Total
Jersey Resident Depositors 6,485,956 2,720,655 9,206,611
Jersey Financial Intermediaries etc 4,933,750 4,801,583 9,735,333
U.K., Guernsey & I.O.M. + unallocated Jersey,UK etc 24,114,811 21,097,616 45,212,427
SUBTOTAL 35,534,517
28,619,854
64,154,371
Other EU Members 3,913,340 11,391,537 15,304,877
European Non EU Members 4,812,790 34,303,544 39,116,334
Middle East 928,677 8,162,812 9,091,489
Far East 2,216,043 6,235,484 8,451,527
North America 2,099,955 17,813,126 19,913,081
Others, Unallocated non Jersey,UK etc 3,115,673 3,053,187 6,168,860
SUBTOTAL 17,086,478 80,959,690
98,046,168

OVERALL TOTAL OF DEPOSITS
52,620,995
109,579,544 162,200,539

 

Percentage of Total Sterling Currency Total
Jersey Resident Depositors 4.0% 1.7% 5.7%
Jersey Financial Intermediaries etc 3.0% 3.0% 6.0%
U.K., Guernsey & I.O.M. + unallocated Jersey,UK etc 14.9% 13.0% 27.9%
SUBTOTAL 21.9%
17.6%
39.6%
Other EU Members 2.4% 7.0% 9.4%
European Non EU Members 3.0% 21.1% 24.1%
Middle East 0.6% 5.0% 5.6%
Far East 1.4% 3.8% 5.2%
North America 1.3% 11.0% 12.3%
Others, Unallocated non Jersey,UK etc 1.9% 1.9% 3.8%
SUBTOTAL 10.5%
49.9%
60.4%
Total 32.4%
67.6%
 

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”.

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

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

Date Fund
Type
Open/
Closed
Total NAV
£ Millions
Number
of Funds
Total No. of Separate Pools
31 March 2005 CIFs
Closed
26,211
224
302
31 March 2005 CIFs
Open
61,682
409
1,721
 
CIF Sub Total
87,893
633
2,023
31 March 2005 COBO Funds
Closed
13,641
192
212
31 March 2005 COBO Funds
Open
2,337
45
54
 
COBO Sub Total
15,978
237
266
 
Quarter Total
103,871
870
2,289

 

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 5   69   385   377   3,794
                               
B02 - Bond-UK Debt 3   24   85   84   2,046
                               
B03 - Bond-US Debt 0   30   719   523   5,228
                               
B04 - Bond-Europe 3   28   336   132   1,708
                               
B05 - Bond-Other 8   34   236   138   4,754
                               
Sub Total Bond     19   185   1,761   1,254   17,530
                               
                               
E01 - Equity-UK 21   29   303   253   4,493
                               
E02 - Equity-Europe (Including UK) 3   32   174   339   2,753
                               
E03 - Equity-Europe (Excluding (UK) 12   16   396   225   1,693
                               
E04 - Equity-US (North America) 4   37   778   370   3,941
                               
E05 - Equity-Japan 3   14   245   163   1,332
                               
E06 - Equity-Far East (Including Japan) 2   11   46   8   543
                               
E07 - Equity-Far East (Excluding Japan) 5   13   60   164   659
                               
E08 - Equity-Global Emerging Markets 7   7   159   24   660
                               
E09 - Equity-Global Equity 27   96   1,009   945   7,889
                               
E10 - Equity-Other 30   79   1,046   912   4,535
                               
Sub Total Equity     114   334   4,216   3,403   28,498
                               
                               
X01 - Mixed-Mixed
Equity and Bond
28   168   659   467   6,399
                               
Sub Total Mixed     28   168   659   467   6,399
                               
                               
M01 - Money Market-Sterling 3   17   211   218   1,027
                               
M02 - Money Market-US Dollar 1   15   121   142   549
                               
M03 - Money Market-Euro 0   13   65   59   537
                               
M04 - Money Market-Swiss 0   5   8   13   230
                               
M05 - Money Market-Other 0   8   5   11   53
                               
Sub Total Money Market     4   58   410   443   2,396
                               
                               
S01 - Specialist-Venture Capital/Private Equity-Emerging Markets 14   0   58   0   211
S02 - Specialist-Venture Capital/Private Equity-other 144   8   51   115   8,842
S03 - Specialist-Real Property 74   11   391   56   12,672
S04 - Specialist-
Derivatives
3   0   0   0   9
                               
S05 - Specialist-Traded Endowment Policies 36   29   508   117   1,553
                               
S06 - Specialist-Hedge/Alternative Investment Funds 261   722   2,931   2,178   22,746
                     
                               
S07 - Specialist-Other 22   55   229   616   3,015
                               
Sub Total Specialist     554   825   4,168   3,082   49,048
                               
Grand Total       719   1,570   11,214   8,649   103,871

 

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

Fund Type Number of Funds Number of
Separate Pools
NAV £ Millions
Unclassified CIFs 565 1,913 80,432
Recognized CIFs 8 39 2,376
Expert CIFs 60 71 5,085
CIFs Sub Total 633 2,023 87,893
       
COBO Funds 237 266 15,978
       
CIFs & COBO Funds Total 870 2,289 103,871

 

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
     

 

Appendix G

ALL INSURANCE LICENCES ISSUED AS AT 31 MARCH
2002
179
2003
181
2004
170
2005
168

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