Jersey Looks Back On Record Year For Fund And Bank Industry

by Jason Gorringe, Tax-News.com, London

28 February 2007

The latest statistics provided on Jersey’s Finance Industry show that the Net Asset Value of funds under administration has reached nearly GBP180 billion as at 31 December 2006, whilst bank deposits have reached an all time high of nearly GBP190 billion.

The figures for the fourth quarter of 2006 are compiled by the Island’s regulator, the Jersey Financial Services Commission (JFSC) and when compared to a year ago, show a general upswing in Finance Industry growth. Bank deposits during the year increased by 2.7% overall to GBP189.7 billion, the highest recorded figure to date and funds under investment management during the year also increased by 26.2% to more than GBP60 billion.

The headline figures from the JFSC for the September to December 2006 quarter, together with comparisons with the figures for December, 2005, are as follows:

• Bank deposits grew by GBP2.1 billion (1.1%) over the last quarter of 2006 to GBP189.7 billion. This represents an increase of GBP5.1 billion (2.7%) during the whole of 2006.
• The Net Asset Value (NAV) of Funds under administration in Jersey grew by GBP9.3 billion (5.5%) during the quarter to reach GBP179.1 billion. During 2006 the NAV of Funds under administration has risen by GBP41.7 billion (30.3%).
• The number of Expert Funds increased by 39 (16.5%) and the NAV of Expert Funds grew by GBP4.1 billion during the quarter. During the whole of 2006 the number of Expert Funds grew by GBP140 to GBP274 (104%) and the NAV increased by GBP15 billion (103%) to GBP29.5 billion.
• The total value of funds under investment management increased by GBP3.9 billion (6.7%) to GBP62.1 billion during the quarter. During 2006 the total value of funds under investment management increased by GBP12.9 billion (26.2%).

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

“These latest figures confirm that the Industry is in good shape and there is a tremendous sense of forward momentum. There is no doubt that, in the current economic environment, there is an abundance of opportunity for Jersey’s Financial Services sector. With a supportive States economic and fiscal policy, Jersey is well placed to continue to excel.

“Whilst the record figures in the funds sector demonstrate Jersey’s continued success in attracting alternative investment funds business, and is further recognition that funds business is a major contributor to the overall success of the Finance Industry, the performance of the banking sector should not be under-estimated.

“The 2.7% growth is an impressive number in a hugely competitive market for banking business, especially given the increase in institutional activity, and particularly given the decrease by GBP4.3 billion recorded in bank deposits in the second quarter of last year. This was primarily the result of a single transaction undertaken by an institution as part of a group re-organisation.”

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

“Whilst we are under no illusion of the competitive nature of the funds business, we set out as an Industry in 2004, alongside the launch of the Expert Fund Guide, to seek to establish Jersey as a leading European centre for specialist funds business. These latest figures certainly demonstrate that we are heading in the right direction to achieve that goal.”

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