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Press Release - 3 June 2004

The Jersey Financial Services Commission has today 3 June 2004 issued its quarterly report for the period 1 January 2004 to 31 March 2004.

Headlines:

  • Bank deposits increased by 4.3% to £155.7 billion during the quarter.
  • The total value of funds under management increased by 15.1% to £35.8 billion during the quarter.
  • The value of collective investment funds managed in the Island stood at £95.7 billion as at 31 March 2004. For further details please see comments below.

Bank Deposits

Jersey bank deposits increased by 4.3% (£6.4 billion) during the quarter despite an increase in the value of sterling against other currencies.(See Appendix A)

68% of bank deposits are held in currencies other than sterling. During the quarter there was an increase (5.4% in US dollar terms) in the underlying value of US dollar balances and in the underlying value of the balances denominated in the Euro (15.6%in Euro terms). (See Appendix B)

The number of banking licences in issue reduced to 51, largely reflecting change in the group structure of some banks.


Figure 1

BANK DEPOSITS
(£ MILLION)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")

During the last quarter of 2003 we changed our methodology for collecting and collating the fund statistics.

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. Such funds are regarded as non-Jersey funds. 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")

The total value of funds fell by £3.0 billion during the quarter to £95.7 billion. Whilst collective investment funds increased by £4.1 billion, there was a fall of £7.1 billion in COBO funds. The latter reflected the impact of a fund moving to another jurisdiction for diversification reasons. (See Appendices C & D)

Company incorporations

The total number of incorporations during the last quarter was 593, an increase of 11% over the corresponding period of last year. This continued the trend in the last quarter of 2003. The increase is 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 255 and the number of normal company incorporations was 338. (See Notes to Editors.)

Against their self-imposed target of 95% the Registry recorded a 98% rate for normal two-day incorporations and a 99% rate for fast track companies. (See Notes to Editors.)

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


Figure 2

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

Investment Business

Total funds under investment management (class B of the Financial Services (Jersey) Law 1998) stood at £35.8 billion as at 31 March 2004, an increase of 29% over the same quarter of 2003. Against the last quarter of 2003 this represented an increase of 15%.

As at 31 March 2004 the total number of clients of investment managers was 20,288 which represented a small decrease over the previous quarter.

Insurance Business

During the quarter to the end of March 2004, no Category A permits were issued or cancelled.

Two new Category B permits were issued, while none were cancelled

Therefore as at 31 March 2004 there were 155 Category A permits in issue, and 15 Category B permits. (See Appendix F.)


Figure 3

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

Conclusion

David Carse, Director General of the Commission, commenting on the quarterly statistics said today, " Most areas of financial services business continued to expand during the first quarter of 2004, with encouraging growth in deposits, collective investment funds, company incorporations and funds under management".

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 83,520 125,897
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

Appendix B

ANALYSIS OF DEPOSITS - MARCH 2004

RESIDENCE OF DEPOSITORS
Sterling
Currency
Total
Jersey Resident Depositors
5,883,520
2,510,124
8,393,644
Jersey Financial Intermediaries etc
5,496,437
3,835,472
9,331,909
U.K., Guernsey & I.O.M. + unallocated Jersey,UK etc
22,542,828
9,345,125
31,887,953
SUBTOTAL
33,922,785
15,690,721
49,613,506
Other EEC Members
3,033,830
13,291,986
16,325,816
European Non EEC Members
4,482,994
32,816,709
37,299,703
Middle East
914,669
6,036,891
6,951,560
Far East
1,999,859
4,538,503
6,538,362
North America
2,187,561
30,009,295
32,196,856
Others, Unallocated non Jersey,UK etc
3,335,759
3,437,265
6,773,024
SUBTOTAL
15,954,672
90,130,649
106,085,321
OVERALL TOTAL OF DEPOSITS
49,877,457
105,821,370
155,698,827

 

PERCENTAGE OF TOTAL
Sterling
Currency
Total
Jersey Resident Depositors 3.8% 1.6% 5.4%
Jersey Financial Intermediaries etc
3.5% 2.5% 6.0%
U.K., Guernsey & I.O.M. + unallocated Jersey,UK etc
14.5% 6.0% 20.5%
SUBTOTAL
21.8% 10.1% 31.9%
Other EEC Members
1.9% 8.5% 10.5%
European Non EEC Members
2.9% 21.1% 24.0%
Middle East 0.6% 3.9% 4.5%
Far East 1.3% 2.9% 4.2%
North America 1.4% 19.3% 20.7%
Others, Unallocated non Jersey,UK etc 2.1% 2.2% 4.4%
SUBTOTAL
10.2% 57.9% 68.1%
TOTAL
32.0% 68.0%  

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 31 MARCH 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
98,702
553
1,945
31 Mar 2004
95,742
644
1,934

ANALYSIS OF CIFS AND COBO FUNDS

Date
Fund Type
Open / Closed
Number of Funds
Total No. of Separate
Pools
Total NAV £ Millions
31 March 2004
CIFs
Closed
129
186
16,434
31 March 2004
CIFs
Open
298
1,489
62,684
CIF Sub Total:
427
1,675
79,118
31 March 2004
COBO Funds
Closed
179
207
9,254
31 March 2004
COBO Funds
Open
38
52
7,370
COBO Sub Total:
217
259
16,624
Quarter Total:
644
1,934
95,742

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
8
46
253
374
2,276
B02 - Bond-UK Debt
3
10  
78
226
3,081
B03 - Bond-US Debt
0
6
32
11
264
B04 - Bond-Europe
3
16  
731
79
2,507
B05 - Bond-Other
4
11
88
149
4,137
Sub Total Bond    
18
89
1,182
839
12,265
E01 - Equity-UK
6
19
123
488
7,229
E02 - Equity-Europe (Including UK)
2
9
37
55
1,064
E03 - Equity-Europe (Excluding (UK)
5
11 
100
210
4,171
E04 - Equity-US (North America)
2
33
658
414
5,135
E05 - Equity-Japan
3
19
379
206
1,605
E06 - Equity-Far East (Including Japan)
1
7
147
34
504
E07 - Equity-Far East (Excluding Japan)
0
15
105
136
1,228
E08 - Equity-Global Emerging Markets
6
5
87
65
463
E09 - Equity-Global Equity
16
99
1,032
981
8,409
E10 - Equity-Other
14
75
1,238
900
3,504
Sub Total Equity    
55
292
3,906
3,489
33,312
X01 - Mixed-Mixed Equity and Bond
55
149
781
385
5,522
Sub Total Mixed    
55
149
781
385
5,522
M01 - Money Market-Sterling
0
15
371
463
950
M02 - Money Market-US Dollar
0
14
144
244
659
M03 - Money Market-Euro
0
11
88
118
488
M04 - Money Market-Swiss
0
5
2
21
237
M05 - Money Market-Other
0
4
3
3
37
Sub Total Money Market    
0
49
608
849
2,371
S01 - Specialist-Venture Capital/Private Equity-Emerging Markets
5
0  
0
0
131
S02 - Specialist-Venture Capital/Private Equity-Other
78
23
43
19
4,787
S03 - Specialist-Real Property
36
1
185
9
5,609
S05 - Specialist-Traded Endowment Policies
3
11
3
5
84
S06 - Specialist-Hedge/Alternative Investment Funds
153
607
1,204
3,740
14,534
S07 - Specialist-Other
10
29
39
276
1,628
Sub Total Specialist    
285
671
1,474
4,049
26,773
Not available
95
176
1,700
1,624
15,499
Sub Total z Not Available    
95
176
1,700
1,624
15,499
Grand Total      
508
1,426
9,651
11,235
95,742

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
     

Appendix F

ALL INSURANCE LICENCES ISSUED AS AT 31 MARCH
31 March 2001
186
31 March 2002
179
31 March 2003
181
31 March 2004
170

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