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Press Release - 27 September 2004

The Jersey Financial Services Commission has today 27 September 2004 issued its quarterly report for the period 1 April 2004 to 30 June 2004.

Headlines:

  • Bank deposits increased by 1.25% during the quarter to £157.6 billion.
  • The total value of funds under management (Class B of the Financial Services (Jersey) Law 1998) increased by 2.2% during the quarter to £36.6 billion.
  • The value of collective investment funds managed in the Island stood at £98.2 billion as at 30 June 2004.

Bank Deposits

Jersey bank deposits increased by 1.25% (£1.94 billion) during the quarter (see Appendix A).

31.7% of bank deposits are held in sterling and 68.3% are held in currencies other than sterling (see Appendix B).

The number of banking licences remained constant at 51.


Figure 1

BANK DEPOSITS
(£ MILLION)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")

As explained in previous Quarterly Reports, since 1 October 2003 the Commission has excluded from the figures Collective Investment Funds for which permits were issued under the Law for minor functions performed in respect of non-Jersey funds (e.g. Distributors). Guidance was given to the industry by the Commission as to what constituted a major and minor function. It appears however that some funds have been reporting incorrectly. The Commission has now refined the reporting template to put beyond doubt which category a fund must be recorded under. As a consequence, the figures previously given for the quarters ending 31 December 2003 and 31 March 2004 have been adjusted to take into account this refinement. As a result, the figures are approximately 3.9% higher than previously reported.

In the quarter to June 2004, while the number of separate pools of assets has risen, the value of funds under management has dropped. Analysis of this drop identifies net redemptions to be the principal cause.

Appendices C and D provide more analysis of fund statistics.

Company incorporations

The total number of incorporations during the June quarter was 584, an increase of 32% over the corresponding quarter in 2003. This continued the trend seen in the previous two quarters. The increase was primarily due to changes in UK legislation relating to stamp duty which will come into force later in the year, and the improving global economy.

The number of ‘fast track’ incorporations for the quarter was 241 and the number of normal company incorporations was 343. (See Notes to Editors.)

For the first six months of 2004, against their self-imposed target of 95%, the Registry recorded a 99.9% rate for normal two-day incorporations and a 99.6% rate for fast track incorporations. (See Notes to Editors.)

Figure 2 illustrates the number of new company incorporations in the first six months of the past four years. (See also Appendix E.)


Figure 2

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

Investment Business

Total funds under management (Class B of the Financial Services (Jersey) Law 1998) stood at £36.6 billion as at 30 June 2004, an increase of 27.5% over the same quarter of 2003.

As at 30 June 2004, the total number of clients of investment managers was 20,188.

Insurance Business

There were no new insurance company licences issued during the quarter ended 30 June 2004, nor were there any cancellations.

The total number of insurance licences at 30 June 2004 therefore remained at 170, of which 155 were Category A and 15 Category B (see Appendix F).


Figure 3

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

Conclusion

David Carse, Director General of the Commission, commenting on the quarterly statistics said today, “Business volumes in the various sectors continued to hold up well in the June quarter”.

For further information:

David Carse
Director General
Jersey Financial Services Commission

Telephone: +44(0) 1534 822011
Facsimile: +44(0) 1534 822001
Email: d.carse@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. £ Millions

DATE NO OF BANKS STERLING CURRENCY TOTAL
31 Dec 1998 79 36,491 66,785 103,276
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

Appendix B

ANALYSIS OF DEPOSITS - JUNE 2004

RESIDENCE OF DEPOSITORS
Sterling
Currency
Total
Jersey Resident Depositors
6,013,605
2,459,156
8,472,761
Jersey Financial Intermediaries etc
4,419,490
4,221,960
8,641,450
U.K., Guernsey & I.O.M. + unallocated Jersey,UK etc
23,104,736
9,885,615
32,990,351
SUBTOTAL
33,537,831
16,566,731
50,104,562
Other EU Members
3,282,115
12,231,336
15,513,451
European Non EU Members
4,585,581
32,774,417
37,359,998
Middle East
935,843
6,797,157
7,733,000
Far East
2,054,945
5,622,878
7,677,823
North America
2,143,821
30,322,971
32,466,792
Others, Unallocated non Jersey,UK etc
3,382,588
3,401,502
6,784,090
SUBTOTAL
16,384,893
91,150,261
107,535,154
OVERALL TOTAL OF DEPOSITS
49,922,724
107,716,992
157,639,716

 

PERCENTAGE OF TOTAL
Sterling
Currency
Total
Jersey Resident Depositors 3.8% 1.6% 5.4%
Jersey Financial Intermediaries etc
2.8% 2.7% 5.5%
U.K., Guernsey & I.O.M. + unallocated Jersey,UK etc
14.7% 6.3% 20.9%
SUBTOTAL
21.3% 10.5% 31.8%
Other EU Members
2.1% 7.8% 9.8%
European Non EU Members
2.9% 20.8% 23.7%
Middle East 0.6% 4.3% 4.9%
Far East 1.3% 3.6% 4.9%
North America 1.4% 19.2% 20.6%
Others, Unallocated non Jersey,UK etc 2.1% 2.2% 4.3%
SUBTOTAL
10.4% 57.8% 68.2%
TOTAL
31.7% 68.3%  

Appendix C

COLLCOLLECTIVE 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 2004

From the 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")

Date
Total NAV
£ Millions
Number
of Funds
Total No.
of Separate Pools
31 Dec 2003
102,521
602
2,142
31 Mar 2004
99,561
686
2,072
30 June 2004
98,227
678
2,124

ANALYSIS OF CIFS AND COBO FUNDS

Date
Fund Type
Open / Closed
Number of Funds
Total No. of Separate
Pools
Total NAV £ Millions
30 June 2004
CIFs
Closed
146
196
16,439
30 June 2004
CIFs
Open
329
1,674
63,718
CIF Sub Total:
475
1,870
80,157
30 June 2004
COBO Funds
Closed
166
209
16,034
30 June 2004
COBO Funds
Open
37
45
2,036
COBO Sub Total:
203
254
18,070
Quarter Total:
678
2,124
98,227

Appendix D

Analysis by Investment Policy Code

Investment Policy
Number of Single Class Funds
Number of Umbrella Sub-funds 
Sales £ Millions
Repurchases £ Millions
NAV £ Millions
B01 - Bond-Global
4
50
287
378
2,603
B02 - Bond-UK Debt
3
10  
77
81
1,845
B03 - Bond-US Debt
0
14
164
2
915
B04 - Bond-Europe
2
17  
43
83
2,494
B05 - Bond-Other
5
17
268
293
4,529
Sub Total Bond    
14
108
839
837
12,386
E01 - Equity-UK
16
14
73
167
2,961
E02 - Equity-Europe (Including UK)
3
15
12
56
908
E03 - Equity-Europe (Excluding (UK)
6
52
130
1,315
E04 - Equity-US (North America)
5
38
539
368
3,541
E05 - Equity-Japan
4
14
435
291
1,032
E06 - Equity-Far East (Including Japan)
1
14
210
235
688
E07 - Equity-Far East (Excluding Japan)
0
14
89
137
549
E08 - Equity-Global Emerging Markets
6
6
129
78
1,081
E09 - Equity-Global Equity
20
105
573
941
7,647
E10 - Equity-Other
14
79
911
803
3,499
Sub Total Equity    
75
308
3,023
3,206
23,221
X01 - Mixed-Mixed Equity and Bond
56
163
650
916
7,957
Sub Total Mixed    
56
163
650
916
7,957
M01 - Money Market-Sterling
2
17
319
720
1,326
M02 - Money Market-US Dollar
0
16
212
703
1,149
M03 - Money Market-Euro
0
14
116
1,837
2,238
M04 - Money Market-Swiss
0
5
1
14
230
M05 - Money Market-Other
0
9
17
5
58
Sub Total Money Market    
2
61
665
3,279
5,001
No Code Allocated
112
221  
1,265
2,006
16,073
Sub Total No Code Allocated
112
221  
1,265
2,006
16,073
S01 - Specialist-Venture Capital/Private Equity-Emerging Markets
6
0
2
0
134
S02 - Specialist-Venture Capital/Private Equity-Other
63
11
17
5
3,397
S03 - Specialist-Derivatives
35
2
190
10
5,972
S04 - Specialist-Real Property
1
0
1
0
4
S05 - Specialist-Traded Endowment Policies
3
13
6
0
106
S06 - Specialist-Hedge/Alternative Investment Funds
156
670
2,047
4,273
21,896
S07 - Specialist-Other
10
34
107
34
2,080
Sub Total Specialist    
274
730
2,370
4,322
33,589
Grand Total      
533
1,591
8,812
14,566
98,227

Appendix E

QUARTERLY COMPANY INCORPORATIONS
 
31 March
30 June
30 September
31 December
2001
680
679
611
790
2002
889
833
623
484
2003
533
442
550
631
2004
593
584
   

Appendix F

ALL INSURANCE LICENCES ISSUED AS AT 30 JUNE
30 June 2001
186
30 June 2002
179
30 June 2003
181
30 June 2004
170

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