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Press Release - 7 December 2004

The Jersey Financial Services Commission has today, 7 December 2004, issued its quarterly report for the period 1 July 2004 to 30 September 2004.

Headlines:

Bank deposits increased by 0.97% during the quarter to £159.17 billion.

The number of collective investment funds and COBO funds rose sharply to 769 during the quarter, albeit this will take time to be reflected in the value of the funds (£96.9 billion at end of September 2004).

The total value of funds under management (Class B of the Financial Services (Jersey) Law 1998) stood at £35.2 billion as at 30 September 2004, an increase of 16.5% over the same period last year.

The growth in company incorporations continued during the quarter, with a 14% increase over the same period last year.

Bank Deposits

Jersey bank deposits increased by 0.97% (£1.53 billion) during the quarter to £159.17 billion (see Appendix A).

31.9% of bank deposits are held in sterling and 68.1% are held in currencies other than sterling (see Appendix B).

During the quarter, the number of banking licences increased from 51 to 55. This was the result of four licences being issued to Cayman-based banks which invoked disaster recovery plans following the impact of Hurricane Ivan. The banks’ disaster recovery plans require the temporary operation of the banks from Jersey. Since 30 September 2004, one of the banks has returned its licence as it has resumed operations in the Cayman Island. The other three banks continue to operate temporarily from Jersey.


Figure 1

BANK DEPOSITS
(£ MILLION) AS AT 30 SEPTEMBER 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”)

For the quarter ended 30 September 2004, the total number of funds, and separate pools reached new record levels (769 and 2208 respectively). The value of funds under management has fallen however by £1.34 billion. This appears to reflect the fact that a number of alternative investment funds were being wound down during the quarter prior to closing. Other similar fund products have been granted permits under the Law during the quarter but have yet to be launched. The net effect has been a small drop in this figure for the quarter.

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

 

Company incorporations

The total number of incorporations during the September quarter was 629, an increase of 14% over the corresponding quarter in 2003. This continued the trend seen in the previous three quarters. The increase was primarily due to changes in UK legislation relating to stamp duty which came into force during the year, and business activity in the Island.

The number of ‘fast track’ incorporations for the quarter was 262 and the number of normal company incorporations was 367. (See Notes to Editors.)

For the first nine months of 2004, against their self-imposed target of 95%, the Registry recorded a 99.25% rate for normal two-day incorporations and a 97.8% rate for fast track incorporations. (See Notes to Editors.)

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

 

Figure 2

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

Investment Business

Total funds under management (Class B of the Financial Services (Jersey) Law 1998) stood at £35.2 billion as at 30 September 2004.

Due to a reporting error by one institution the previously published June 2004 figure was overstated by £2.1 billion. The corrected figure for funds under management as at 30 June 2004 is £34.5 billion.

There has therefore been an increase in funds under management of £0.7 billion (2%) in the quarter ended 30 September 2004.

As at 30 September 2004, the total number of clients of investment managers was 20,297.

Insurance Business

All insurance business licences came up for annual renewal at 30 September 2004.

Seven Category A licence holders and three Category B licence holders decided not to renew their licences. In the main, this was because a licence was no longer needed because of consolidation in the Industry or the licence holder took a strategic decision to close to new business.

During the quarter three new Category A licences were issued.

The total number of insurance licences at 30 September 2004 therefore stood at 164, of which 152 were Category A and 12 Category B (see Appendix G).

 


Figure 3

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

Conclusion

David Carse, Director General of the Commission, commenting on the quarterly statistics said today, ”The main feature of the quarter was the very sharp increase in the number of funds, which is encouraging for the development of the industry in Jersey. Bank deposits continued their steady rise and the volumes of investment business and corporate activity remain well above last year’s levels.”

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. £ 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
30 Sept 2004 55 50,707 108,464 159,171

 

Appendix B

ANALYSIS OF DEPOSITS - SEPTEMBER 2004

RESIDENCE OF DEPOSITORS
Sterling
Currency
Total
Jersey Resident Depositors
5,919,118
2,360,801
8,279,919
Jersey Financial Intermediaries etc
4,419,721
4,052,707
8,472,428
U.K., Guernsey & I.O.M. + unallocated Jersey,UK etc
23,611,788
9,959,944
33,571,732
SUBTOTAL
33,950,627
16,373,452
50,324,079
Other EU Members
3,484,911
12,728,471
16,213,382
European Non EU Members
4,642,276
34,170,710
38,812,986
Middle East
929,216
6,825,070
7,754,286
Far East
2,128,970
5,838,411
7,967,381
North America
2,144,988
28,976,384
31,121,372
Others, Unallocated non Jersey,UK etc
3,425,806
3,551,468
6,977,274
SUBTOTAL
16,756,167
92,090,514
108,846,681
OVERALL TOTAL OF DEPOSITS
50,706,794
108,463,966
159,170,760

 

PERCENTAGE OF TOTAL
Sterling
Currency
Total
Jersey Resident Depositors 3.7% 1.5% 5.2%
Jersey Financial Intermediaries etc
2.8% 2.5% 5.3%
U.K., Guernsey & I.O.M. + unallocated Jersey,UK etc
14.8% 6.3% 21.1%
SUBTOTAL
21.3% 10.3% 31.6%
Other EU Members
2.2% 8.0% 10.2%
European Non EU Members
2.9% 21.5% 24.4%
Middle East 0.6% 4.3% 4.9%
Far East 1.3% 3.7% 5.0%
North America 1.3% 18.2% 19.6%
Others, Unallocated non Jersey,UK etc 2.2% 2.2% 4.4%
SUBTOTAL
10.5% 57.9% 68.4%
TOTAL
31.9% 68.1%  

 

Appendix C

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 SEPTEMBER 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"). Funds regulated under the Law are referred to herein as “CIFs”.

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
30 Sept 2004
96,883
769
2,208

 

COLLECTIVE INVESTMENT FUNDS (JERSEY) LAW 1998
CONTROL OF BORROWING (JERSEY) ORDER 1958

SUMMARY OF STATISTICAL SURVEY OF FUNDS SERVICED IN JERSEY AS AT 30 SEPTEMBER 2004

ANALYSIS OF CIFS AND COBO FUNDS

Date
Fund Type
Open / Closed
Number of Funds
Total No. of Separate
Pools
Total NAV £ Millions
30 Sept 2004
CIFs
Closed
193
260
23,500
30 Sept 2004
CIFs
Open
364
1,708
58,203
CIF Sub Total:
557
1,968
81,703
30 Sept 2004
COBO Funds
Closed
174
185
12,975
30 Sept 2004
COBO Funds
Open
38
55
2,205
COBO Sub Total:
212
240
15,180
Quarter Total:
769
2,208
96,883

 

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
66
324
300
3,634
B02 - Bond-UK Debt
3
21
66
89
2,004
B03 - Bond-US Debt
1
24
120
150
5,089
B04 - Bond-Europe
2
24
136
172
3,304
B05 - Bond-Other
7
21
235
199
4,821
Sub Total Bond    
17
156
881
910
18,852
E01 - Equity-UK
19
23
195
208
4,591
E02 - Equity-Europe (Including UK)
3
31
209
279
2,806
E03 - Equity-Europe (Excluding (UK)
10
16 
178
235
2,139
E04 - Equity-US (North America)
4
39
389
435
3,435
E05 - Equity-Japan
4
17
225
234
1,200
E06 - Equity-Far East (Including Japan)
1
14
41
31
519
E07 - Equity-Far East (Excluding Japan)
1
13
46
71
746
E08 - Equity-Global Emerging Markets
7
5
55
19
538
E09 - Equity-Global Equity
21
98
465
643
7,652
E10 - Equity-Other
15
81
787
558
3,851
Sub Total Equity    
85
337
2,590
2,713
27,477
X01 - Mixed-Mixed Equity and Bond
58
188
336
433
6,629
Sub Total Mixed    
58
188
336
433
6,629
M01 - Money Market-Sterling
2
20
528
402
1,071
M02 - Money Market-US Dollar
1
17
119
248
645
M03 - Money Market-Euro
0
14
60
59
537
M04 - Money Market-Swiss
0
5
11
12
229
M05 - Money Market-Other
0
8
12
3
59
Sub Total Money Market    
3
64
730
724
2,541
No Code Allocated
90
48
101
77
4,285
Sub Total No Code Allocated
90
48
101
77
4,285
S01 - Specialist-Venture Capital/Private Equity-Emerging Markets
7
0
0
0
146
S02 - Specialist-Venture Capital/Private Equity-Other
99
11
19
25
6,665
S03 - Specialist-Derivatives
49
3
452
11
8,784
S04 - Specialist-Real Property
1
0
2
0
6
S05 - Specialist-Traded Endowment Policies
19
21
138
10
559
S06 - Specialist-Hedge/Alternative Investment Funds
190
715
1,948
2,007
18,634
S07 - Specialist-Other
13
34
88
49
2,305
Sub Total Specialist    
378
784
2,647
2,102
37,099
Grand Total      
631
1,577
7,285
6,959
96,883

 

Appendix E

COLLECTIVE INVESTMENT FUNDS (JERSEY) LAW 1998 ('THE LAW')
CONTROL OF BORROWING (JERSEY) ORDER 1958 (THE “ORDER”)

SUMMARY OF STATISTICAL SURVEY OF FUNDS SERVICED IN JERSEY AS AT 30 SEPTEMBER 2004

Analysis by Class

Fund Type
Number of Funds
Number of Separate
Pools
NAV £ Millions
Unclassified CIFs
527
1,891
76,538
Recognized CIFs
10
53
2,555
Expert CIFs
20
24
2,610
CIFs Sub Total:
557
1,968
81,703
COBO Funds
212
240
15,180
CIFs & COBO Funds Total
769
2,208
96,883

 

Appendix F

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
606
584
629
000

 

Appendix G

ALL INSURANCE LICENCES ISSUED AS AT 30 SEPTEMBER
30 September 2001
167
30 September 2002
175
30 September 2003
184
30 September 2004
164

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