Fund Manager Optimistic On Jersey's Economic Outlook

by Robert Lee, Tax-News.com, London

07 August 2003

Leading fund manager Mark Costar believes the economic outlook for Jersey and the world at large is optimistic despite falling corporate profits and redundancies.

Quoted in a Jersey Evening Post report, Mr Costar, a partner and fund manager at JO Hambro based in London, who has also recently been voted amongst the top three fund managers by Investment Week magazine, observes "there is plenty of scope for sustained economy recovery."

"Stability in the market allows companies to take stock and make sensible, strategic, long-term investment decisions," adds Costar, continuing: "The last couple of years have been driven by consumer spending, but the next few years will be more influenced by corporate spending as companies invest in research and development, in software and IT, in their people and in physical resources."

"If the stock market does rise - and I think it will - that will drag up the financial services industry as a whole," Costar surmised.

Speaking to financial intermediaries in the island last week, Mr Costar gave an upbeat assessment of Jersey's economic outlook.

"The key issue for Jersey is staying competitive by continuing to offer a value added service provided by a highly skilled workforce. Competition will have a big impact on the Island, and allowing outside companies to compete against established monopolies will prompt the consumer to get better deals and spend more money. It could also help to dilute Jersey's reliance on the finance industry," commented the fund manager.

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