Jersey Bank And Fund Assets Top GBP400 Bn

by Robert Lee, Tax-News.com, London

31 August 2007

The latest statistics on Jersey’s Finance Industry for the second quarter of 2007 show that bank deposits and investment fund assets under administration in the Island both broke through the GBP200 billion milestone, as at the end of June.

The figures for the second quarter of 2007 are compiled by the Island’s regulator, the Jersey Financial Services Commission (JFSC), and highlight a buoyant mood across the Finance Industry with all sectors experiencing an upswing in business growth. The funds and banking sectors have performed particularly strongly yet again. Compared to the previous quarter, bank deposits have increased by 6.6% overall to GBP211.7 billion, the highest recorded figure to date, and the Net Asset Value of Funds under administration increased by 8.2% to GBP210.4 billion.

The headlines for the Finance Industry’s statistics for the quarter ending June 2007 are as follows:

• Bank deposits grew by GBP13.2 billion (6.6%) over the quarter to GBP211.7 billion. This represents an increase of BP28.0 billion (15.3%) during the last 12 months.
• The Net Asset Value (NAV) of Funds under administration in Jersey grew by GBP15.9 billion (8.2%) during the quarter to reach GBP210.4 billion. Since June 2006 the NAV of Funds under administration has risen by GBP50.7 billion (31.8%).
• The number of Expert Funds increased by 19 (6.3%) and the NAV of Expert Funds grew by GBP4.1 billion (12.1%) during the quarter. During the last 12 months the number of Expert Funds grew by 105 to 319 (49.1%) and the NAV increased by GBP16.6 billion (76.6%) to GBP38.3 billion.
• The total value of funds under investment management increased by GBP4.9 billion (7.5%) to GBP70.8 billion during the quarter. Since June 2006 the total value of funds under investment management increased by GBP11.7 billion (19.9%).

Geoff Cook, Chief Executive of Jersey Finance Limited, commented: “All key sectors of Jersey’s Financial Services Industry reported excellent growth rates which are testament to the strength and depth of Jersey’s product and service offering provided by our world-class workforce.

“In the second quarter of 2007, company formations were up 77% on the same period in 2006. This represents a definite upward trend of Jersey company formations, primarily for property holding purposes. On an inward investment note, we are very pleased to welcome Investec Bank (Channel Islands) Ltd to Jersey.

“The Expert Funds sector in particular performed outstandingly well, with 105 new Expert Funds being set up over the last 12 month period. We are seeking to build on Jersey’s importance as a leading European fund domicile and administration centre, with a new funds product offering which will enable Jersey to retain its pre-eminent status, as one of the world’s leading international finance centres.”

Richard Thomas, recently appointed Chairman of the Jersey Funds Association, added: “These statistics are particularly pleasing due to the intense competition we are currently seeing in the market place and are testament to the attractive nature of Jersey’s funds offering and the professional expertise in the jurisdiction. Not only has the number of Expert Funds significantly increased year on year, but the NAV has also grown by a hugely impressive 76.6% to now stand at GBP38.3 billion. Moreover, Jersey’s focus on specialist funds, including private equity, alternative investment and hedge funds, continues to reap rewards. They have increased on the previous quarter by 12.5% to GBP109.9 billion and now account for well over half the total NAV of funds.”

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