JFA News

London professionals welcome positive update on Jersey’s funds industry

Fri, 27 Apr 2012 08:12:00 GMT

An audience of almost 300 fund professionals heard that Jersey is well placed to meet stringent international regulations and grow its funds business at a major conference held in London last week, organised by Jersey Finance.

Two-thirds of delegates attending Jersey Finance’s London Funds Conference, held at the British Museum last week (18 April), were UK-based, and they heard from a heavyweight line-up of finance and legal professionals who considered the future of the international funds industry and explored how market trends might impact International Finance Centres.

Two keynote presentations opened and closed the event, with David Smith, Economics Editor at The Sunday Times, offering his insights into the economic crisis and Jersey’s Treasury and Resources Minister Senator Philip Ozouf underscoring the States of Jersey’s commitment to supporting the future growth of Jersey’s funds industry. Two panel sessions also explored the key issues and opportunities facing the industry, including the Alternative Investment Fund Managers Directive. The event was moderated by Anthony Hilton, City Editor of the Evening Standard.

Geoff Cook, chief executive, Jersey Finance Limited, commented:

“That such a significant proportion of those attending our flagship London funds conference were based in the UK is real evidence of just how attractive Jersey’s funds offering continues to be to the London market. The feedback we have had about the event, particularly from the London-based funds lawyers, managers and advisors, has been extremely positive. They were incredibly impressed with what independent industry experts had to say about Jersey’s funds industry.

“Those attending were particularly pleased to receive an update on Jersey’s commitment to working with AIFMD, learn more about Jersey’s recently launched Private Placement Fund regime, and hear that fund managers are increasingly considering relocating to Jersey. Having Treasury and Resources Minister Senator Philip Ozouf offer his governmental level support to the funds industry was also extremely well received by delegates.”

Nigel Strachan, Chairman of the Jersey Funds Association and who participated in the second panel discussion at the conference, added:

“Overall, the message taken home by delegates was that the outlook for Jersey’s funds industry is positive. With competition increasing significantly in the international funds arena, this event served Jersey well in terms of provoking debate and opening up new channels of discussion with key intermediaries in London, which remains a key market for Jersey. It is vital that we maintain momentum and continue with our efforts to promote a key pillar of our finance industry through events like this."

Message of optimism for Jersey’s funds sector at annual dinner

Thu, 22 Mar 2012 16:44:00 GMT

Jersey’s funds industry can be positive about the year ahead and has the right ingredients to maintain its position as a leading European funds centre, according to the head of the association that represents the funds industry in Jersey.

Speaking to an audience of 450 funds professionals at the Jersey Funds Association (JFA) Annual Dinner, which took place at the Hotel de France on Friday 9th March, Nigel Strachan, Chairman of the JFA, said that the industry was working hard to maintain high levels of investor confidence. He said:

“The most recent figures show that, at the end of 2011, Jersey’s funds sector had grown year on year, with the alternative asset classes in particular performing well. Jersey has committed to satisfying fully the criteria for the AIFM Directive whilst also retaining a flexible non-EU regime, and is successfully positioning itself as a specialist centre for institutional, sophisticated and professional investment funds business. This is all very positive.”

He also highlighted the recent launch of the Private Placement Fund regime as an example of Jersey’s commitment to innovation in a competitive market, and referred to the sustained interest being shown by fund managers considering relocating to Jersey.

Entertainment at the dinner was provided by Perrier and Sony award-winning comedian Milton Jones, who regularly appears on national television and radio, whilst musical entertainment was provided by Joe Stilgoe, a favourite at the UK’s top jazz clubs. A raffle held on the night also raised £5,000 for Multiple Sclerosis Society of Jersey.

The lead sponsors of the event were private equity fund services firm Ipes and financial services firm JP Morgan, with a pre-dinner champagne reception sponsored by BNP Securities Services.

Nigel Strachan added:

“Jersey continues to be recognised as a robust, well regulated jurisdiction with a strong expert workforce and, with relationships with key business referrers in London remaining strong, I believe we can maintain our momentum and look forward to a successful year ahead.”

Photos from the dinner are available to view via the JFA website www.jerseyfunds.org.

Jersey Minister and finance professionals join leading City practitioners to explore future of funds business

Tue, 20 Mar 2012 09:16:00 GMT

A heavyweight line up of finance and legal professionals will consider the future of the funds industry with a particular focus on how the markets will impact International Finance Centres at the annual Funds Conference hosted and organised by Jersey Finance in London next month.

Two panel sessions will explore some of the key issues and opportunities facing the industry. The first will explore the Alternative Investment Fund Managers Directive (AIFMD) Level 2 implementation methods and its implications on the European and offshore alternative funds industries.

Later in the programme a fresh panel will debate the current funds marketplace from an International Finance Centre perspective, discussing the key drivers for funds businesses and identifying trends in the split of real estate, private equity and hedge funds as well as the opportunities for fund managers and promoters looking to use Jersey. These panels will be moderated by Anthony Hilton, City Editor of the Evening Standard.

Two keynote presentations will open and close the event with David Smith, Economics Editor at The Sunday Times, addressing the audience with his insight into how western economies can rebalance in light of the economic crisis and steady rise of the BRIC economies. Jersey’s Treasury and Resources Minister Senator Philip Ozouf will close the conference by underscoring the States of Jersey’s commitment to safeguarding and building the future of the island’s funds industry.

Geoff Cook, chief executive, Jersey Finance Limited, who will open the event, commented:

“Against a backdrop of market volatility, economic uncertainty and regulatory burden, this year’s funds conference brings together an exceptional group of industry experts to explore these challenges and look at the opportunities ahead. Jersey has had a positive start to 2012 with the introduction of the Private Placement Fund Regime, the value of which is already being realised by fund managers. Issues such as AIFMD will continue to present regulatory challenges for jurisdictions like Jersey, however it will also offer opportunities and I look forward to generating thought-provoking debate on these important issues.”

Nigel Strachan, Chairman of the Jersey Funds Association, added:

“Having reported a 2.5% increase in the net asset value of funds under administration and a 25% increase in the number of unregulated funds during 2011, Jersey’s funds industry continues to perform well, strengthening its offering for sophisticated, professional and institutional investors and focusing on providing high levels of certainty. Maintaining momentum will be vital this year and this conference will undoubtedly provide a fascinating insight into what is on the horizon for our industry.”

Jersey Finance’s 7th annual Funds Conference takes place on April 18th 2012 at the British Museum starting at 12.30pm and closing at 7pm following a drinks reception. To book a place or to view the full list of speakers and the complete programme please visit http://www.jerseyfinance.je/Events/Jersey-Finance-Events/Jersey-Finance-Annual-London-Funds-Conference.

Date Announced for Jersey Finance Annual London Funds Conference 2012

Fri, 24 Feb 2012 16:34:00 GMT

Jersey Finance has announced that its Annual London Funds Conference will take place this year on Wednesday 18th April at the British Museum.

Further details about the event are due to be available shortly at www.jerseyfinance.je.

Jersey introduces new scheme to enhance its fund regime

Fri, 27 Jan 2012 15:39:00 GMT

Jersey has extended its funds regime through the introduction of the Private Placement Fund to widen the choice available to investors.

Private Placement Funds are closed ended funds available to a limited number of sophisticated institutional or professional investors. Similar in scope to the existing COBO (Control of Borrowing Order) private funds, the new fund offering is designed for ‘fast track’ approval, usually within three business days.

Private Placement Funds will sit within the COBO framework and will complement the existing Expert Fund regime which also provides a streamlined approval process and has helped position Jersey as a leading European centre for alternative funds business.

Geoff Cook, chief executive, Jersey Finance Limited, commented:

“Even in these testing economic conditions, Jersey has seen increasing levels of business in the alternative funds sector during 2011 and our latest figures show 10.5% year on year growth in the net asset value of funds being administered in Jersey.

“With Jersey’s funds industry already well positioned to secure alternative funds business and with signs of further growth evident, it is an appropriate time to offer an even wider choice of sophisticated fund vehicle to meet international demand. The introduction of the Private Placement Fund scheme demonstrates that Jersey is determined to not only remain competitive in the funds arena but will also continue to provide innovative solutions within its range of fund services.”

He added: “Industry representatives led by Mike Lombardi at Ogier and Ben Robins at Mourant Ozannes have consulted closely to help fashion this new fund regime, taking into account the evolving needs of international investors and the changing nature of global regulation.”

Key features are:

- The fund is restricted to less than 50 sophisticated, professional investors

- It is closed ended and has a minimum investment or commitment level of £250,000 or currency equivalent

- A fast track approval process is available provided that the offer document conforms to the applicable content rules and sponsors meet the suitability requirements contained within the Private Placement Fund guide

- Each Fund requires a mandated licensed Jersey administrator approved by the Jersey Financial Services Commission

- The Offer Document is obliged to include an appropriate form of investor warning.

Jersey will continue to operate its COBO regime also for those specialist private funds which do not fall within the scope of the new Private Placement offer. The new Private Placement Fund is effective and available to investors from Thursday, January 26.

Nigel Strachan, Chairman of the Jersey Funds Association, added:

“Jersey’s funds industry, together with the Jersey Financial Services Commission, has been working really hard to create this new Private Placement funds regime, so it’s excellent news that it can now be unveiled. Specifically geared towards limited numbers of professional or sophisticated investors, this flexible regime will offer, provided the fund satisfies certain conditions, a fast track, streamlined authorisation process that we believe will add to the strength and range of fund products in Jersey and provide speed and certainty to launch for investors – essential in today’s market, where arrangers need to react quickly to new market opportunities. With its appropriate regulatory oversight, we expect the regime to be attractive across the alternative asset classes, including real estate, private equity, mezzanine, cleantech and emerging market funds.”

Top comedian to entertain funds professionals at annual dinner

Wed, 25 Jan 2012 17:33:00 GMT

Funds professionals in Jersey will be entertained by a Perrier and Sony award-winning comedian at the annual Jersey Funds Association (JFA) Dinner this year.

Milton Jones, who regularly features on Radio 4, has appeared on Michael McIntyre’s Comedy Roadshow and is a writer on the BBC series Not Going Out, will be the guest speaker at the dinner, which takes place on 9th March at the Hotel de France.

The lead sponsors of the event are private equity fund services firm Ipes and financial services firm JP Morgan. The evening will begin at 6.45pm with a champagne reception, sponsored by BNP Securities Services. Musical entertainment will be provided before and after the dinner by Joe Stilgoe, whose singing, piano playing and sense of humour have made him a favourite at the UK’s top jazz clubs, where he regularly plays.

Nigel Strachan, Chairman of the Jersey Funds Association, said:

“Whilst the past year has been challenging for the funds industry globally, funds professionals in Jersey have worked tirelessly to ensure that we have been able to maintain our position as a leading European funds centre. The annual flagship JFA dinner is an excellent way to recognise the work that has been put in over the past twelve months and to look forward to what I believe can be a successful year ahead.”

Chairman's Update

Sat, 21 Jan 2012 16:28:00 GMT

The Chairman of the Jersey Funds Association, Nigel Strachan, has written to all members providing them with an update on the Funds Industry. To view this letter, please click on the link below.

JFA members update January 2012 Final.pdf

Jersey Funds Association 2012 Annual Dinner - Friday 9 March

Fri, 30 Dec 2011 18:27:00 GMT

The Jersey Funds Association 2012 Annual Dinner will take place on Friday 9 March at Hotel de France commencing at 6.45pm which this year is kindly being sponsored by Ipes & JP Morgan.

This year the Association is delighted to announce that the guest speaker for the evening will be Milton Jones. Milton's wonderful use of language has been showcased repeatedly on Radio 4 and he is currently on series nine of his own show. He has also been seen on Michael McIntyre's Comedy Roadshow, Mock the Week and is a regular writer on BBC1's hit Not Going Out. Further details about Milton can be found on the link below.

milton CV.pdf

The dinner will take place in the Great Hall and will commence with a champagne reception which this year is kindly being sponsored by BNP Paribas Securities Services.

As in previous years, the event will be a black-tie dinner and carriages will be at 2.00am.

Once again during and after dinner Joe Stilgoe will be preforming who is a serious musician having fun! His singing, piano playing and sense of humour have made him a favourite at the UK's top jazz clubs, where he regularly plays.

As this is always a well attended event, it is anticipated that demand for tables will be high and it is recommended that bookings are returned as soon as possible and no later than 3 February 2012 to Caroline Harrington at enquiries@jerseyfunds.org. Whilst members are encouraged to make up their own table (or indeed two tables!) we will put togeter tables for those whose parties are smaller than 10. A booking form is available to download by clicking on the link below.

Booking Form.doc

The cost of the dinner is £65.00 per person and dinner cards and wine lists will be circulated in due course.

It is very much hoped that support will be given to this evening that has become a highlight of the Jersey Funds Association calendar of events.

Positive news for funds in latest finance figures

Wed, 14 Dec 2011 10:50:00 GMT

Jersey’s finance industry showed stable overall growth in the third quarter of 2011, with the value of funds it administers growing to reach its highest level since June 2009.

Geoff Cook, Chief Executive of Jersey Finance Limited, saw signs of resilience for Jersey in what continues to be a challenging environment, citing particularly positive news for the funds sector, which recorded 10.5% year on year growth in the net asset value of funds being administered in Jersey to stand at £197.6bn. That figure does not include funds established under the Unregulated Funds Regime, of which there were 147 by the end of the period – an 8% increase on the previous quarter.

That the total number of companies registered in Jersey grew to its highest level in the past 12 months was also a positive indicator of the health of the industry.

The statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 30th September 2011. The headline figures are as follows:

Banking deposits increased by £2.3bn (1.4%) during the third quarter of 2011 from £165bn to £167.3bn.

The Net Asset Value of funds under administration increased by £1bn (0.5%) from £196.6bn to £197.6bn during the third quarter of 2011. The total number of regulated funds increased by 42 from 1,323 to 1,365 over this period.

The total number of unregulated funds increased by 11 (8%) to 147 during the third quarter of 2011.

The value of funds under investment management decreased by £1.4bn (6.3%) compared to the previous quarter from £22.2bn to £20.8bn.

The total number of live companies on the register increased by 78 from 33,116 to 33,194 during the third quarter of 2011.

Geoff Cook commented: “Jersey’s finance industry performed well during the third quarter of 2011. The total sterling value of banking deposits increased by 1.4% with currency fluctuations accounting for 0.5% of this movement. Encouraging news was also received on the banking front with the announcement that Abu Dhabi Commercial Bank has successfully applied to operate in Jersey.

“We are particularly encouraged by the increase in the total number of Jersey funds, especially against a backdrop of challenging fundraising conditions. A total of 53 new funds were added to the total funds stocks during the period – the best quarterly performance since September 2010. Whilst a 6.3% decrease in the net asset value of funds under investment management was recorded, this performance is still relatively good when benchmarked against key financial market indices - the FTSE 100 index decreased by more than 15% over the same period.

“Increasingly, Jersey is a key jurisdiction for corporate listings. Our members are receiving enquiries from many Indian and Chinese businesses to set up capital raising structures using Jersey companies. This is supported by the total number of live companies in Jersey increasing for a fourth consecutive quarter.’’

Nigel Strachan, Chairman of the Jersey Funds Association, added: “That the funds sector in Jersey continues to perform well in difficult conditions, recording an increase in the value of funds under administration for the fifth consecutive quarter, will give investors confidence in Jersey. It’s also pleasing that the alternative asset classes remain strong, with the value of Private Equity, Venture Capital and Real Estate funds being administered in Jersey all showing increases on the previous quarter.”

Latest EU report on Funds Directive is positive for Jersey

Tue, 29 Nov 2011 12:54:00 GMT

Jersey Finance says it is encouraged by the contents of the European Securities and Markets Authority (ESMA) report on the Alternative Investment Fund Managers Directive (AIFMD) which was published last week and contains its final recommendations to the European Commission.

There has been a change in the wording between the earlier draft and the final report in one important aspect in respect of ‘third countries’, the term used to describe jurisdictions outside of the EU. Though the regulatory standards remain high and robust, the change is positive for ‘third countries’ since it makes it less onerous to achieve compliance. The Directive will require supervisory co-operation and exchange of information agreements between the authorities of EU member states and non EU countries.

Heather Bestwick, Technical Director of Jersey Finance, comments:

‘It is broadly positive throughout and Jersey remains on track to meet the criteria necessary for the funds industry to continue to participate when the new EU regime for funds is implemented. We are studying the detail but our first impressions are that there is nothing new in ESMA’s final report to give us concern.

‘Naturally there is still considerable work to do but it remains our intention to offer investors an ‘opt in’ AIFMD compliant regime while retaining flexibility for managers whose primary source of institutional capital is outside of Europe.’

EMSA’s latest document is the final technical recommendations to the European Commission who are expected to prepare the implementing measures on the basis of the report’s advice.

Jersey remains top offshore centre in latest GFCI

Tue, 27 Sep 2011 13:48:00 GMT

Jersey has climbed two places, retained its position as the highest rated offshore international finance centre and enhanced its global reputation, according to the latest Global Financial Centres Index (GFCI) released on Monday 26th September 2011.

Overall, Jersey is placed 21st in the competitive rankings, which are published every six months, ahead of Guernsey in 31st, the Isle of Man (40th), Cayman Islands (46th) and Malta (70th).

In addition, Jersey has climbed into the top ten locations in the world for wealth management and private banking services, being named in eighth position, and is the fifth highest ranked location overall in Europe, only behind major city centres London, Zurich, Geneva and Frankfurt.

Jersey has also moved from being categorised as a ‘transnational specialist’ to a ‘global specialist’ centre, becoming the only offshore to achieve a ‘global’ profile, listed alongside centres such as Beijing, Dubai and Geneva. The Index also scores Jersey well in terms of stability and as the 16th highest ranked centre globally in terms of reputation - the only offshore centre to appear in the top 20 centres by reputational advantage.

Noting that confidence amongst financial professionals has risen since the last index for virtually all centres, the report comments that Eurozone centres, such as Dublin, Luxembourg and Malta, have suffered in the rankings. It also states that offshore centres ‘are now recovering’ as respondents ‘recognise the contribution these centres can make to global finance’, and that ‘Jersey and Guernsey are working to change perceptions and to ‘rise above’ the status of offshore specialist centres by being seen as more diversified’.

London is named as the number one centre overall in the rankings again, marginally ahead of New York and Hong Kong.

Geoff Cook, chief executive of Jersey Finance Limited, commented:

“Jersey has performed extremely well in this latest Index, holding on to its position as the top offshore centre, which it has now held for five consecutive Indexes. To be listed ahead of major European centres such as Paris, Munich and Luxembourg, confirms that Jersey is incredibly well regarded on the global stage.

“This is particularly pleasing when you consider that Jersey is one of the only offshore centres to have improved its global ranking and is now referred to as a global player and one of the top centres worldwide for wealth management services. That Jersey’s stability is also emphasised is extremely positive in the current climate, whilst the fact that the Index recognises Jersey’s reputation is testament to the hard work that goes in to promoting Jersey both at home and in key foreign markets.

“It is interesting that the Asian centres are continuing to consolidate their position in the rankings. Both Hong Kong and Shanghai remain in the top five, emphasising how important it is that Jersey continues to maintain its marketing efforts with overseas centres like Hong Kong and Greater China in order to drive Jersey’s future success.”

Positive Performance for Jersey's Funds Industry

Mon, 26 Sep 2011 09:42:00 GMT

Jersey’s finance industry showed stable overall growth in the second quarter of 2011, with the value of funds administered in the island reaching its highest level for two years and the value of funds under management increasing by 4.2%.

Geoff Cook, Chief Executive of Jersey Finance Limited, saw signs of stability for Jersey in a persistently volatile global environment, highlighting that company formations, a good indicator of the health of an economy, were up for the third quarter in succession.

There was positive news for the funds sector, which recorded an increase in the net asset value of funds being administered in Jersey for the fourth consecutive quarter to stand at £196.7bn, reflecting a 10.5% year on year increase. The figure does not include funds established under the Unregulated Funds Regime, of which there were 136 by the end of the period – an 8.8% increase on the previous quarter. The alternative asset classes also reported net asset value growth of £2.3bn (1.6%) to £145.2bn.

The statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 30th June 2011. The headline figures are as follows:

• The Net Asset Value of funds under administration increased by £2.1bn (1.1%) from £194.6bn to £196.7bn during the second quarter of 2011. The JFSC authorised 25 new regulated funds during the second quarter of 2011, reflecting a 25% increase over the quarter.

• The total number of unregulated funds increased by 11 (8.8%) to 136 during the second quarter of 2011.

• The value of funds under investment management increased by £0.9bn (4.2%) compared to the previous quarter from £21.3bn to £22.2bn.

• The total number of live companies on the register increased by 118 from 32,998 to 33,116 during the second quarter of 2011.

Geoff Cook commented:

“There continues to be very positive news for the funds sector, which saw an increase in the total net asset value of funds under administration and management. New business instructions were up 25% and, subject to markets stabilising, we expect to see improvements in new funds numbers in the coming months. The investment management sector, meanwhile, reported growth of 2% in its client base and the net asset value of funds under investment management grew by 4.2%.

“Given most economies did not recover at the rate economic forecasters were predicting for the second quarter of 2011, these latest figures demonstrate a stable position with improvements in company formation numbers and investment management being sustained.’’

Leading international regulators and practitioners debate next steps in AIFMD progress

Fri, 15 Jul 2011 11:14:00 GMT

Jersey Finance is hosting a specially arranged morning seminar in Jersey next week as a follow up to the anticipated announcement of the draft AIFMD Level II implementation measures for the European alternative fund industry.

Leading regulators will debate the implications for the offshore marketplace of the EU’s Alternative Investment Fund Managers Directive (AIFMD) alongside senior UK and Jersey based practitioners.

Participants include representatives from the UK’s Financial Services Authority (FSA) and the regulatory wing of the Alternative Investment Management Association (AIMA), the Jersey Financial Services Commission (JFSC) and senior practitioners in the funds and asset management sectors in London, France and Jersey.

In addition to direct feedback from the regulators about the implications of the Directive and the Draft Level II implementation measures, a panel session will debate the measures and explore the opportunities and challenges for Jersey.

Geoff Cook, chief executive, Jersey Finance Limited, who will host the event, commented

“Jersey is exceptionally well placed at a strategic level to move forward with development of its AIFMD compliant regime, together with the adoption of a flexible regime to provide genuine choice.

“Today’s event is one of the first opportunities to debate the implications of the Level II draft proposals which will help set the agenda about how finance jurisdictions respond, now that increasing details about the contents of the Directive are available for review. And we are very privileged to hear the views of such expert international regulators and practitioners first-hand.”

Those taking part are:

• Giles Swan, FSA Lead, Collective Investment Schemes Policy Team;

• Alain Dubois, Chairman, Lxyor Asset Management;

• Anne Holm Rannaleet, Senior Advisor and Chairman of the Industrial Advisory Board, IK Investment Partners;

• Florence Fontan, head of public affairs, BNP Paribas Securities Services;

• Anna Larris, Associate Director, Head of Asset Management Regulation, AIMA,

• James Greig, Partner, PWC Legal LLP;

• Brendan McMahon, Partner, Global Asset Management, Private Equity Leader, PwC CI LLP, Jersey and

• John Harris, Director General, JFSC.

The morning seminar entitled ‘Jersey Embraces AIFMD’ takes place at the Hotel de France starting at 10.00 a.m. on Wednesday, July 20. Only a few delegate places remain available and those interested in attending from either the UK or Jersey should contact Claire Wilby claire.wilby@jerseyfinance.je or fax to 01534 836001.

Jersey’s finance industry crowned Best International Finance Centre for second consecutive year

Fri, 15 Jul 2011 11:22:00 GMT

Jersey has been named ‘Best International Finance Centre’ at the International Fund and Product Awards 2011 for the second consecutive year, further cementing the finance industry’s international reputation.

The awards, which are run by the Incisive Media Group, were held on June 16th in London and Christine Whitfield, Head of Special Projects at Jersey Finance, attended the event at media investment company Ingenious to accept the award on Jersey’s behalf.

Jersey Finance held off competition from Isle of Man Finance and Guernsey Finance to retain the title. The 12 strong judging panel praised Jersey for its anticipation of international regulations affecting its funds industry.

Deborah Benn, chair of the judging panel, commented:

“The judges were impressed with recent regulatory and legislative work and active promotion of Jersey as a finance centre. In particular, the judges felt Jersey demonstrated good foresight in tackling the forthcoming EU and global legislative challenges it faces in a positive and proactive manner.”

Christine Whitfield commented:

“Winning this award for the second year running is testament to the consistently high standard of work that Jersey’s finance industry conducts across all the business sectors and markets, local and international, in which it operates. Jersey is regularly endorsed by third-parties as a leading finance centre and it is an honour for Jersey Finance to once again accept this award on behalf of the finance industry.”

Strong growth in new fund launches signals excellent start to 2011 for Jersey’s funds industry

Fri, 20 Jan 2012 11:33:00 GMT

The principal sectors of Jersey’s finance industry showed strong growth in the first three months of 2011, with rises in new fund launches and the value of funds under administration providing particularly positive news for Jersey’s funds sector.

Geoff Cook, Chief Executive of Jersey Finance Limited, was encouraged by the strong performance for the first quarter of 2011, highlighting that the value of funds being administered in Jersey is now at its highest since June 2009 and that the total number of funds has increased by the largest amount for the first quarter of any year since 2008.

Furthermore, bank deposits held in Jersey originating from the Far East and Middle East continue to increase and now stand at £10.4bn and £20.2bn respectively, representing a combined total of 18% of Jersey’s level of deposits and reflecting the value of recent promotional activity in Hong Kong, Greater China and the United Arab Emirates.

The statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31st March 2011. The headline figures are as follows:

Banking deposits increased by £4.9bn (3%) during the first quarter of 2011 from £161.6bn to £166.5bn.
The Net Asset Value of funds under administration increased by £9.9bn (5.4%) from £184.7bn to £194.6bn during the first quarter of 2011. The total number of regulated funds increased by 40 from 1,324 to 1,364 from January to March.
The total number of unregulated funds increased by 3 (2.4%) to 125 during the first quarter of 2011.
The value of funds under investment management decreased by 0.2% compared to the previous quarter from £21.4bn to £21.3bn.
The total number of live companies on the register increased by 276 from 32,722 to 32,998 during the first quarter of 2011.

Geoff Cook, Chief Executive of Jersey Finance, commented:

“Jersey’s finance industry performed well during the first quarter of 2011, with growth of 3% in the value of banking deposits and 5% in the value of funds under administration. It is extremely encouraging to see that growth is reported in line with the strategic direction Jersey has taken as a jurisdiction, to position itself as a specialist centre for alternative funds business and to focus on building links with international markets.

“The alternative asset class, including real estate, hedge and private equity funds, now represents 58% of the total net asset value of funds under administration. The fact that the total number of regulated funds increased by 40 – the largest increase in funds for the first quarter of any year since 2008 - is significant too, reflecting a rise in new fund launches and demonstrating added confidence in our funds sector at the beginning of the calendar year. Meanwhile, an analysis of the residence of depositors shows the importance of some of Jersey’s newer markets.

“Our focus on inward investment and our clear commitment to new markets will carry on and we are confident Jersey will continue to reap the rewards of this strategy.”

Nigel Strachan, Chairman of the Jersey Funds Association, added:

“That there has been a strong uptake of new fund launches at the beginning of 2011 is a good sign for the funds industry, as this reflects a real confidence in Jersey’s funds capabilities following a period of uncertainty in the global markets. It is also encouraging that unregulated funds continue to grow in popularity amongst sophisticated investors and that Jersey is retaining a healthy alternative investments funds sector. These trends and this rate of growth we expect to maintain through 2011.”