Offshore-Business in Jersey

FT.com
'Alternative' offerings make Jersey a popular destination
Sunday November 9, 5:10 pm ET
By Paul J Davies

Jersey continues to attract investment funds business in spite of a testing year for the industry, with the value of assets serviced in the UK offshore tax haven topping $100bn (£60bn) f or the first time, according to research from Fitzrovia International.
Total assets serviced in Jersey rose to $102.3bn in the year to June, up 12 per cent from $91bn in 2001-02.

Ed Moisson, Fitzrovia's associate director, said the island was attracting business because of the kind of services it offers. "Compared to other European markets, Jersey is smaller, but good at attracting assets to niche funds. So, private equity and hedge funds are still growing despite uncertain markets."

Brendan McMahon, financial services partner at PwC in Jersey, agreed: "Jersey has demonstrated it is the European finance centre of choice for alternative funds and structured product s."

Fitzrovia found that assets in private equity and venture capital funds domiciled in Jersey had risen from $10bn in 90 funds to $14bn in 108 funds in the past year.

There was also a leap in alternative investment funds from 64 to 123, largely due to launches from Deutsche Bank's Xavex funds range and Lyxor Asset Management, owned by Société Gé nérale. Lyxor dominated, launching 48 new funds in the year. Royal Bank of Canada ranks top for both administration and custodian services, overseeing assets worth $26.4bn and $26.6bn, respectively, in the two areas.

In administration, it is followed by Mourant International Finance with $17.4bn and State Street with $11.4bn. Mourant also captured the largest amount of new administration business , taking $3.1bn of new assets in the year. Royal Bank of Scotland, with $12bn, and Deutsche Bank, with $9bn, came second and third in custodian services.

(Source: ft.com, Financial Times, November 9th, 2003)

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