Jersey Funds And Bank Deposits Hit New Highs

by Jason Gorringe, Tax-News.com, London

01 June 2007

The latest statistics provided on Jersey’s finance industry show that the Net Asset Value of funds under administration and the total level of bank deposits have reached further record levels, with each approaching the GBP200 billion (US$395 billion) milestone as at 31 March 2007.

The figures for the first quarter of 2007 are compiled by the Island’s regulator, the Jersey Financial Services Commission (JFSC), and indicate a general upswing in growth across the finance industry, with the funds and banking sectors performing particularly strongly yet again. Compared to the previous quarter, bank deposits have increased by 4.7% overall to GBP198.6 billion, the highest recorded figure to date, and the Net Asset Value of Funds under administration increased by 8.6% to GBP194.5 billion.

Bank deposits grew by GBP8.9 billion (4.7%) over the quarter to GBP198.6 billion. This represents an increase of GBP10.6 billion (5.6%) during the year.

The Net Asset Value (NAV) of Funds under administration in Jersey grew by GBP15.4 billion (8.6%) during the quarter to reach GBP194.5 billion. Since March 2006, the NAV of Funds under administration has risen by GBP38.5 billion (24.7%). The number of Expert Funds increased by 26 (9.4%), and the NAV of Expert Funds grew by GBP4.6 billion (15.7%) during the quarter. During the year, the number of Expert Funds grew by 131 to 300 (43.7%) and the NAV increased by GBP16.3 billion (47.6%) to GBP34.1 billion.

The total value of funds under investment management increased by GBP3.7 billion (6.0%) to GBP65.8 billion during the quarter. During the year, the total value of funds under investment management increased by GBP7.5 billion (12.9%).

Geoff Cook, Chief Executive of Jersey Finance Limited, commented:

“These latest figures show that the Island continues to enjoy the confidence of international investors and advisors around the globe. Jersey has also recently won the prestigious award for ‘top international finance centre’ at International Investment’s Fund and Product Awards 2007 in London, which is further recognition of Jersey’s position as a leading international finance centre."

He continued: “All key sectors of the Industry continued to report strong growth this first quarter. The funds sector particularly enjoyed another successful quarter, reporting 8.6% growth to reach GBP194.5 billion. Recent amendments to the funds framework such as the introduction of the listed fund guide demonstrate the Island’s commitment to innovation and to maintaining and developing reputable funds business in Jersey and we are confident Jersey will continue to build on these successes in 2007 and beyond."

“Whilst we are extremely pleased to announce these latest growth figures, we know there is no room for complacency and Jersey commits to continue to work on a number of initiatives with Government and the Regulator to ensure Jersey remains the top international finance centre.”

Gary Clark, Chairman of the Jersey Funds Association, added:

“When we launched the Expert Fund Guide in 2004, we anticipated an impressive take-up. The latest figures, indicating that the Net Asset Value of Expert Funds has increased since March 2006 by 47.6%, demonstrate just how attractive the Guide is and how forward thinking we are as a jurisdiction. Also particularly pleasing is the increase in specialist funds, including private equity, alternative investment and hedge funds. They have increased on the previous quarter by 13% to GBP97.6 billion, now accounting for over half the total NAV of funds.”

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