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Value of Jersey-regulated funds tops GBP300bn for first time

The value of regulated funds serviced in Jersey has broken through the GBP300 billion barrier for the first time, according to the latest figures to be collated by the jurisdiction’s regulator the Jersey Financial Services Commission (JFSC).

Figures for the third quarter of 2018 (ending 30 September 2018) show that the net asset value of regulated funds under administration in Jersey grew 14 per cent year-on-year to stand at GBP301.7 billion, the highest recorded figure to date.
 
The statistics also show that all the alternative asset classes, which represent 82 per cent of Jersey’s total funds business, recorded an annual increase of 26 per cent. Specifically, private equity fund values rose by a considerable 41 per cent to GBP89.6 billion, hedge fund values increased by 18 per cent to GBP56.8 billion and real estate funds by 11 per cent to GBP40.7 billion. The combined total of infrastructure, credit and debt funds also showed impressive growth, increasing by 26 per cent to stand at GBP59.5 billion.
 
The value of assets managed in Jersey Private Funds, which totalled GBP19.4 billion according to the latest mid-year statistics reported by the JFSC, is not included in these quarterly figures.
 
Meanwhile, these statistics follow the publication of the latest Monterey Insight Jersey Fund Report 2018, published last month, which illustrates an increasingly global picture for Jersey’s funds sector. That report shows that, whilst the number and value of funds with UK promoters have remained consistent over the past five years, the value of Jersey-domiciled fund assets originating from the US has grown by almost 150 per cent and the number of Jersey funds with US promoters has grown 165 per cent. Equally, Jersey-domiciled fund assets with Japanese promoters have increased five-fold over the same time span.
 
Commenting on the figures, Jersey Finance CEO, Geoff Cook (pictured), says: “The clear evidence is that Jersey is providing an attractive proposition for fund promoters, with all alternative asset classes showing really strong growth over the past twelve months, particularly the private equity sector.”
 
“Meanwhile, the Monterey report confirms that Jersey is gaining real traction as a global hub for cross-border investment, with fund promoters from the US, Asia and Africa viewing Jersey as an expert jurisdiction for alternative fund servicing. The UK remains a key focus for Jersey, and through Brexit we fully expect to see more UK managers looking to Jersey for specialist support. At the same time, though, a growing number of managers beyond Europe are exploring how Jersey’s robust, innovative regulatory framework and specialist alternatives expertise can support them with their global fund distribution, and that’s a fantastic endorsement of Jersey as a jurisdiction.”

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