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Press Release - 9 March 2004

The Jersey Financial Services Commission has today, 9 March 2004, issued its quarterly report for the period 1 October 2003 to 31 December 2003.

Headlines:

  • Bank deposits increased by 7.1% to £149.3 billion during 2003, despite a fall in the last quarter of the year.
  • The total value of funds under management increased by 6.9% to £31.1 billion during 2003.
  • The value of collective investment funds managed in the Island stood at £98.7 billion as at 31 December 2003, under our new method of collating the statistics. For further details please see comments below.

Bank Deposits

Jersey bank deposits fell by 4.3% during the last quarter of 2003 to £149.3 billion. However there was an increase of £9.9 billion (7.1%) during 2003 as whole. (see Appendix A).

Of the total deposit base at the end of 2003, £101 billion related to customer deposits and £48 billion to inter bank deposits.

Approximately 68% of bank deposits are held in currencies other than sterling. During 2003, there was a sharp increase (39% in US dollar terms) in the underlying value of US dollar balances, though this was partly offset by a decline in balances denominated in the Euro.

The number of banking licences in issue as at 31 December 2003 was 55, the same as in the previous quarter.


Figure 1

BANK DEPOSITS
(£ MILLION)AS AT 31 DECEMBER 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.

1. Old method

Under this method we collated statistics on all funds in respect of which one or more permits under the Law were in issue (such funds are termed "CIF Funds") This method therefore reflected the volume of public funds for which management, administration, trusteeship, custody of assets, investment advice/management, distribution or other similar functions were performed in or from within the Island. The figures do not include funds for which no permit was issued under the Law but instead a consent was granted under the Order (such funds are termed"COBO Funds").

The value of CIF Funds rose to £122.7 billion at the end of December 2003, an increase of 13.4% during the quarter and 16.7% during 2003 as a whole. The increase in the quarter seems to be attributable to a rise in stock markets. (see Appendix C).

2. New method

We now exclude 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. The exclusion of these funds has reduced the total net asset value of funds by £47.8 billion. However, for the first time, the Island has collected statistics on the private schemes administered in the Island, which, although not requiring a permit under the Law, require consent under the Order. The inclusion of these COBO Funds has increased the total by £23.7 billion, thus arriving at a total figure of £98.7 billion as at 31 December 2003. (See Appendices D & E).

The lack of previous data for this segment of the industry makes it impossible for us to comment on trends. However it is interesting to note the marked increase in Specialist Funds under the new method (i.e. £25.6 billion of the £98.7 billion) ( See Appendix E). This compares to approximately £15 billion of the £122.7 billion under the old method and demonstrates the importance of this sector of the funds industry in Jersey. (Hedge Funds make up £13 billion of this £25 billion).

In future we will only provide data under the new method.

 

Figure 2

COLLECTIVE INVESTMENT FUNDS
(£ MILLION) AS AT 31 DECEMBER FOR EACH OF THE PAST FOUR YEARS

Company Incorporations

The total number of incorporations during the last quarter was 631 which shows an increase of 30 % over the corresponding period for last year. This trend has continued from the last quarter.

The number of 'fast track' incorporations for this quarter was 350 and the number of normal company incorporations for this quarter was 281. (see Notes to Editors.)

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

Figure 3 (See also appendix F) illustrates the number of new company incorporations throughout the past four years.

 

Figure 3

TOTAL NEW COMPANY INCORPORATIONS DURING THE YEAR FOR THE PAST FOUR YEARS

Investment Business

The total funds under investment management (class B of the Financial Services (Jersey) Law 1998) stood at £31.1 billion as at 31 December 2003, an increase during the year of 6.9%.

As at 31 December 2003 the total number of clients of investment managers was 20,710 about the same as at the end of the previous quarter.


Insurance Business

The annual renewal date for insurance business permits is 1 October, so the figures at 31 December 2003 are affected by those companies that did not renew their permits.

During the year 15 new Category A permits were issued and 16 category A permits were not renewed.

With regard to Category B permits, 6 were not renewed. These were all SPVs that had a pre-defined business life of three or four years. No new Category B permits were issued during the year.

Therefore as at 31 December 2003 there were 155 Category A permits in issue, and 13 Category B permits. (See Appendix G).


Figure 4

ALL INSURANCE LICENCES AS AT 31 DECEMBER FOR EACH OF THE PAST FOUR YEARS

Conclusion

David Carse, Director General of the Commission, commenting on the quarterly statistics said today, " The revised methodology for the collation of the fund statistics is considered to be a more accurate reflection of the fund business activity in the Island. On the old basis the value of funds increased during 2003, as did the value of assets under management. In both cases, this reflected the improvement in world financial markets during 2003. Whilst bank deposits have shown a fall over the last quarter there was a significant increase during 2003".

 

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

Appendix B

ANALYSIS OF DEPOSITS - DECEMBER 2003

RESIDENCE OF DEPOSITORS
Sterling
Currency
Total
Jersey Resident Depositors
5,873,164
2,713,927
8,587,091
Jersey Financial Intermediaries etc
4,926,497
3,658,698
8,585,195
U.K., Guernsey & I.O.M. + unallocated Jersey,UK etc
20,446,974
9,695,781
30,142,755
SUBTOTAL
31,246,635
16,068,406
47,315,041
Other EEC Members
2,576,954
11,064,617
13,641,571
European Non EEC Members
4,726,207
34,827,969
39,554,176
Middle East
827,152
6,294,096
7,121,248
Far East
1,800,261
4,924,861
6,725,122
North America
2,055,583
24,858,610
26,914,193
Others, Unallocated non Jersey,UK etc
4,074,914
3,906,552
7,981,466
SUBTOTAL
16,061,071
85,876,705
101,937,776
OVERALL TOTAL OF DEPOSITS
47,307,706
101,945,111
149,252,817

 

PERCENTAGE OF TOTAL
Sterling
Currency
Total
Jersey Resident Depositors 3.90% 1.80% 5.80%
Jersey Financial Intermediaries etc
3.30% 2.50% 5.80%
U.K., Guernsey & I.O.M. + unallocated Jersey,UK etc
13.70% 6.50% 20.20%
SUBTOTAL
20.90% 10.80% 31.70%
Other EEC Members
1.70% 7.40% 9.10%
European Non EEC Members
3.20% 23.30% 26.50%
Middle East 0.60% 4.20% 4.80%
Far East 1.20% 3.30% 4.50%
North America 1.40% 16.70% 18.00%
Others, Unallocated non Jersey,UK etc 2.70% 2.60% 5.30%
SUBTOTAL
10.80% 57.50% 68.30%
TOTAL
31.70% 68.30%  

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 ADMINISTERED IN JERSEY UP TO 31 DECEMBER 2003

The Survey was conducted in relation to all funds in respect of which one or more permits under the Law was in issue at that date (such funds are termed "CIF Funds"). The Survey therefore reflects the volume of public funds for which management, administration, trusteeship, custody of assets, investment advice/management, distribution or other similar function(s) was performed in or from within the Island. The figures do not include Funds for which no permit was issued under the Law but instead a consent was granted under the Order (such funds are termed "COBO Funds").

Date
Total Value
£ Million
Number
of Funds
Total No.
of Separate Pools
30-Jun-00
87,082.80
314
1373
30-Sep-00
90,310.50
313
1410
31-Dec-00
90,866.80
321
1423
31-Mar-01
94,758.30
313
1438
30-Jun-01
105,612.60
302
1575
30-Sep-01
94,823.80
296
1692
31-Dec-01
103,375.90
327
1591
31-Mar-02
106,854.00
353
1503
30-Jun-02
106,228.40
368
1528
30-Sep-02
96,912.60
403
2013
31-Dec-02
105,136.40
449
1856
31-Mar-03
95,806.90
472
1877
30-Jun-03
98,285.70
466
1841
30-Sep-03
108,232.50
480
1921
31-Dec-03
122,707.00
501
2089

2. SUMMARY OF STATISTICAL SURVEY OF FUNDS ADMINISTERED IN JERSEY AS AT 31 DECEMBER 2003

From 1st October 2003 the survey includes COBO Funds as described above but excludes those funds for which a permit was issued under the Law solely for the function of distributor or similar minor function and those COBO Funds with a minor role.

Date
Total NAV
£ Millions
Number
of Funds
Total No.
of Separate Pools
31 Dec 2003
98,702
553
1,945

Appendix D

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

SUMMARY OF STATISTICAL SURVEY OF FUNDS ADMINISTERED IN JERSEY AS AT 31 DECEMBER 2003

Analysis of CIFs and COBO Funds

Date
Fund Type
Open / Closed
Number of Funds
Total No. of Separate
Pools
Total NAV £ Millions
31 Dec 2003
CIFs
Closed
110
172
10,120
31 Dec 2003
CIFs
Open
297
1,546
64,823
CIF Sub Total:
407
1,718
74,943
31 Dec 2003
COBO Funds
Closed
108
143
6,455
31 Dec 2003
COBO Funds
Open
38
84
17,304
COBO Sub Total:
146
227
23,759
Quarter Total:
553
1,945
98,702

Appendix E

COLLECTIVE INVESTMENT FUNDS (JERSEY) LAW 1998 ('THE LAW')

CONTROL OF BORROWING (JERSEY) ORDER 1958 (THE "ORDER")
SUMMARY OF STATISTICAL SURVEY OF FUNDS ADMINISTERED IN JERSEY AS AT 31 DECEMBER 2003

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
5
35  
486
545
2,467
B02 - Bond-UK Debt
3
10  
89
165
2,997
B03 - Bond-US Debt
0
21  
291
18
13,078
B04 - Bond-Europe
3
16  
103
174
1,393
B05 - Bond-Other
6
4  
6
8
1,617
Sub Total Bond    
17
86  
975
910
21,552
E01 - Equity-UK
9
18  
28
292
5,772
E02 - Equity-Europe (Including UK)
2
6  
18
52
358
E03 - Equity-Europe (Excluding (UK)
5
8  
93
239
4,090
E04 - Equity-US (North America)
1
32  
580
612
4,667
E05 - Equity-Japan
3
18  
289
192
928
E06 - Equity-Far East (Including Japan)
1
8  
109
42
472
E07 - Equity-Far East (Excluding Japan)
1
17  
185
85
1,095
E08 - Equity-Global Emerging Markets
5
6  
262
108
1,258
E09 - Equity-Global Equity
12
117  
932
840
8,361
E10 - Equity-Other
11
78  
1,453
603
3,335
Sub Total Equity    
50
308  
3,949
3,065
30,336
X01 - Mixed-Mixed Equity and Bond
47
204  
709
503
6,701
Sub Total Mixed    
47
204  
709
503
6,701
M01 - Money Market-Sterling
0
17  
779
941
1,345
M02 - Money Market-US Dollar
0
18  
1,354
1,594
1,685
M03 - Money Market-Euro
0
15  
1,922
2,020
1,874
M04 - Money Market-Swiss
0
5  
2
17
270
M05 - Money Market-Other
0
5  
5
6
46
Sub Total Money Market    
0
60  
4,062
4,578
5,220
S01 - Specialist-Venture Capital/Private Equity-Emerging Markets
7
0  
0
0
241
S02 - Specialist-Venture Capital/Private Equity-Other
80
41
155
9
4,357
S03 - Specialist-Real Property
29
1
386
34
5,282
S04 - Specialist-Derivatives
2
0
21
6
85
S05 - Specialist-Traded Endowment Policies
3
11
11
0
85
S06 - Specialist-Hedge/Alternative Investment Funds
149
583
1,334
3,298
13,437  
S07 - Specialist-Other
10
39
361
22
2,107
Sub Total Specialist    
280
675
2,268
3,369
25,594
Not available
19
199  
1,207
1,522
9,299
Sub Total z Not Available    
19
199  
1,207
1,522
9,299
Grand Total      
413
1,532  
13,170
13,947
98,702

Appendix F

QUARTERLY COMPANY INCORPORATIONS
 
31 March
30 June
30 September
31 December
1999
645
625
720
709
2000
970
727
684
683
2001
680
679
611
790
2002
889
833
623
484
2003
533
442
535
631

Appendix G

ALL INSURANCE LICENCES ISSUED AS AT 31 DECEMBER
31 December 2000
181
31 December 2001
182
31 December 2002
176
31 December 2003
168

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

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