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JFA News
Friday
06
March 2020

Recent industry figures underline appeal of Jersey’s ecosystem for alternatives

Recent figures illustrating growth in Jersey’s funds industry are reflective of manager and investor confidence in Jersey and provide evidence that Jersey is right at the cutting edge in creating an ideal ecosystem for alternatives, according to the Chair of the Jersey Funds Association.

The latest figures for Jersey’s finance industry for the period ending 31 December 2019, collated by the Jersey Financial Services Commission (JFSC) and published in February, found that the net asset value of regulated funds under administration in Jersey grew by £25.8bn annually to stand at £345.7bn.  This growth was fueled by the alternatives sector, which rose by 6% over the year.In particular, private equity and venture capital increased by 19% in 2019 to stand at £136bn.

A deeper dive into those figures shows that, over the past five years, overall funds business in Jersey has grown by 51%, with private equity growing by more than 200%, and the value of real estate business growing by some 31%.

Those figures came shortly after the publication of the latest Monterey Jersey Fund Report, also published last month, which found that (as at June 2019) Jersey’s funds sector had achieved sustained annual growth over each of the past three years of 17%, again driven predominantly by private equity, venture capital, real estate and infrastructure funds.

That report also pointed to the growing global appeal of Jersey’s funds environment, with the value of Jersey-domiciled funds with US promoters rising by 20% year on year and funds with Japanese promoters doubling.

Tim Morgan,Chair, Jersey Funds Association, said: “From a funds industry perspective, this is all clear evidence that the focus we have placed on creating a perfect ecosystem for alternatives is hitting home amongst an increasingly diverse manager and investor base. The growth we are experiencing in private equity is impressive, but we’re seeing a strong performance in real estate, hedge and infrastructure too, and with good reason.

“Our ability to enable managers to distribute funds easily and cost-effectively into the EU through private placement and to the rest of the world outside of the constraints of AIFMD is really finding favour with managers, whilst our commitment to nurturing a substance-driven environment and our emphasis on governance, quality service and specific expertise is increasingly attractive.

“It’s particularly pleasing to see our Jersey Private Fund (JPF) product, the AUM figures for which are not included in the JFSC’s overall reported total values, continue to grow in popularity too and surpass the 300 mark, cementing its position as the go-to vehicle for sophisticated investors.”

At the end of last year,the JFA presented the findings of its annual members survey, which found that 85% of members were confident or very confident on their growth outlook.

Recent figures illustrating growth in Jersey’s funds industry are reflective of manager and investor confidence in Jersey and provide evidence that Jersey is right at the cutting edge in creating an ideal ecosystem for alternatives, according to the Chair of the Jersey Funds Association.

JFA News
Friday
20
September 2019

New record high for Jersey’s funds sector as private equity soars

The value of regulated funds serviced in Jersey rose by 7% to a new record high in the first half of 2019, according to the latest figures to be collated by the jurisdiction’s financial regulator the Jersey Financial Services Commission (JFSC).

The value of regulated funds serviced in Jersey rose by 7% to a new record high in the first half of 2019, according to the latest figures to be collated by the jurisdiction’s financial regulator the Jersey Financial Services Commission (JFSC).

Figures for the second quarter of 2019 (ending 30 June 2019) show that the net asset value of regulated funds under administration in Jersey grew by £22.1bn over the first six months of the year to stand at £342.1bn, a new record high and a figure that has grown by more than 70% over the past five years.

The alternative asset classes continued to perform strongly, recording a combined rise over the first six months of 2019 of 6% to represent 85% of Jersey’s total funds business. Once again private equity was pivotal in driving the growth, rising by an impressive 14% over the six-month period. There was also growth in real estate (up 2.5%) whilst infrastructure, credit and debt funds rose collectively by 2% and hedge funds decreased by 3%.

The latest quarterly figures come shortly after it was announced at Jersey Finance’s Annual London Funds Conference earlier this month that the number of registered Jersey Private Funds (JPF) had grown by 25% over the half year to 257, with assets under management of £43bn – more than double the value at the end of 2018 (£19.4bn). The figures for JPFs, a structure that was introduced in 2017 to cater for the needs of small groups of sophisticated investors, are in addition to the numbers in the quarterly statistics.

Meanwhile, figures from the JFSC also reveal positive news in the banking sector, where the value of deposits held in Jersey grew 5% in the first half of the year to stand at £129.3bn, the highest figure since 2015.

Commenting on the figures, Jersey Finance CEO, Joe Moynihan, said:

“It’s particularly pleasing that we have succeeded in maintaining our momentum from last year into 2019 with a really strong set of figures. At our conference in London earlier this month, we set out clearly why Jersey continues to prove an attractive option for alternative fund structuring and the fact that we have reached new heights midway through the year is compelling evidence of that. The stability Jersey can provide, together with its expertise, cutting-edge regulatory framework and global market access is clearly resonating with managers.

“The fact that our banking sector remains so resilient is hugely positive too. It is a key component of our financial services industry and is continuing to evolve to meet the increasingly sophisticated, global and digital demands of investors now and in the future.

Tim Morgan, Chair, Jersey Funds Association, added:

“These figures demonstrate that the private equity sector sees real benefits in using Jersey and that the Jersey Private Fund (JPF) is fast becoming the go-to structure for investors. Managers are continually looking for reliable, cost effective solutions to support their investors’ needs and Jersey’s funds offering provides the perfect solution for the long-term.”

The full set of quarterly statistics is available here.

JFA News
Wednesday
10
October 2018

Industry Figures Reveal Upbeat Picture for First Half of 2018

The latest figures on the size of the finance industry in Jersey show banking deposits are rising and the value of the funds industry is at a record high.

The latest figures on the size of the finance industry in Jersey show banking deposits are rising and the value of the funds industry is at a record high.
The net asset value of regulated funds under administration grew by £15 billion during the second quarter of 2018 to stand at £296 billion at 30 June 2018, the highest recorded figure to date, while banking deposits are also higher at £121.2 billion, the most since March 2016 and £5.7 billion higher than in March 2018.

The statistics, collated by the Jersey Financial Services Commission and published by Jersey Finance, for the period ending 30 June 2018, also show that all the alternative asset classes, which are central to the success of the funds industry, have recorded an increase since the start of the year. Private equity fund values rose by nearly £4 billion to £86.5 billion and real estate increased by £2 billion to £39.5. Hedge funds values increased by nearly £4 billion to £54 billion and the combined total of infrastructure, credit and debt funds was nearly £10 billion higher at £59.6 billion.

These latest figures on funds business complement the data issued by the JFSC in the summer, which showed that the number of Jersey alternative investment funds being marketed into the EU through national private placement regimes (NPPRs) continued to increase (up 5% since December 2017) and the number of Jersey registered managers opting to market into the EU through NPPRs under the Alternative Investment Fund Managers Directive (AIFMD) also increased (up 8%).

To add to the encouraging picture, live companies on the Commission register have also climbed since December 2017 by more than 500 to stand at 32,618 companies.

Commenting on the trends, Jersey Finance CEO, Geoff Cook, said: “These latest figures offer clear evidence of the industry’s resilience during challenging times and demonstrate its ability to grow and thrive. It is also worth noting these figures do not include the Jersey Private Funds, a fast track regime introduced in 2017, and as at 24 September 2018, the JFSC had granted authorization to 167 JPFs. This figure represents an increase of 280% since August 2017.  It is certainly a tribute to Jersey’s stability, high regulatory standards and the global appeal of its range of investment structures. These combined strengths, delivered by a skilled workforce, ensure Jersey remains an attractive jurisdiction across a broad range of sectors.

“When reviewing the figures during the first six months of the year, there are a host of positives to acknowledge and, with finance employment figures approaching the highest ever level coupled with more than 50% of business flows now coming from emerging markets, the industry is on a strong footing, while making a vital contribution to tax revenues - something which is good for all of us.

JFA News
Thursday
24
March 2016

Jersey funds industry focused on innovation

Jersey’s funds industry will need to embrace FinTech, assert its long-standing expertise and focus on innovation in order to remain at the forefront of a constantly evolving global funds landscape, according to the chairman of the Jersey Funds Association (JFA).

Jersey’s funds industry will need to embrace FinTech, assert its long-standing expertise and focus on innovation in order to remain at the forefront of a constantly evolving global funds landscape, according to the chairman of the Jersey Funds Association (JFA).

Speaking at this year’s annual JFA Dinner (18th March), Ben Robins told an audience of over 450 funds professionals, senior politicians and regulatory representatives that the recent performance of Jersey’s funds industry painted an extremely positive picture and positioned the jurisdiction well as a centre for alternative funds business.

Highlighting that the total value of funds business grew at the end of 2015 to reach £226bn, and that company formation activity was at its highest level since 2008, he pointed to rising levels of business across the well-established hedge, real estate and private equity asset classes, but also significant growth in emerging areas including debt, credit and infrastructure funds. Explaining that the industry globally faces a number of challenges, Ben said:

“Volatility, uncertainty, complexity, and ambiguity will be the key challenges facing those of us operating in the asset management sphere in 2016. In the worlds of regulation and tax transparency, the Base Erosion and Profit Shifting (BEPS) project progresses with surprising speed, AIFMD trundles on, the implementation of MiFID II has been postponed yet again to January 2018, and the Common Reporting Standard now looms large, adding significantly to the complex tax information sharing burden presented by FATCA.

“However, these are global asset management issues, not just issues impacting Jersey. In fact, 2015 was another year of very positive performance for our local funds industry. The net asset value of funds under administration in Jersey grew over the twelve months and by the end of the year 230 Jersey funds and 104 Jersey managers were actively marketing into the EEA under AIFMD private placement arrangements, a reflection of our strong European market access proposition.

“The inward migration of fund managers to Jersey is also an exciting growth trend, ably facilitated by Jersey Finance and Locate Jersey, with Jersey now in the top ten hedge fund management hubs globally. There are now 126 fund promoters operating in Jersey, a 113% increase in five years, so we are fast cementing our reputation as an asset management substance hub which is very helpful in these times of BEPS and AIFMD.

Looking at the year ahead, Ben suggested that the current direction of regulatory traffic and market developments could give Jersey some opportunities:

“We've done really well keeping pace with the shifting international norms and this year will give us an opportunity to re-assert our long-standing credentials as an innovative jurisdiction. We are finding ways, for instance, to make the increased flow of information in this world of heightened transparency as smooth as possible. Whether it's FATCA or CRS tax reporting, KYC information-sharing or AIFMD Annex IV reporting, there’s an opportunity for Jersey to harness its FinTech capability to make these complex new requirements more digestible.

“Capturing these opportunities, of course, requires high quality human resources, but I have no doubt that, whatever the future may throw at Jersey in this world of uncertainty, we have the high quality of resilient human capital our funds industry needs to thrive.”

The JFA annual dinner was held on Friday 18th March at the Royal Jersey Showground and featured comedian Miles Jupp as guest speaker. Lead sponsor of the event was Mourant Ozannes, silver sponsors included BNP Paribas Securities Services, Hawksford, Moore and Ogier, and the champagne reception was sponsored by Carey Olsen.

JFA News
Tuesday
24
February 2015

Jersey funds industry reaches seven year high

A strong performance in Jersey’s funds sector in 2014 has seen the value of fund assets administered in the jurisdiction increase by almost one fifth year-on-year to reach the highest level in seven years.

A strong performance in Jersey’s funds sector in 2014 has seen the value of fund assets administered in the jurisdiction increase by almost one fifth year-on-year to reach the highest level in seven years.

The latest figures for Jersey’s finance industry, collated by the Jersey Financial Services Commission (JFSC) for the period ending December 2014, show that the net asset value (NAV) of funds under administration in Jersey grew by £23.5bn over the final quarter of last year to now stand at £228.9bn, representing an increase of 19% compared to December 2013 and the highest level since December 2008. In addition, the total number of regulated funds rose by 19 during the quarter.

This was led by another strong performance in the alternative asset classes, which account for 72% of the total NAV, with the value of hedge fund business growing by 46% year-on-year, real estate business growing by 32% to its highest ever level, and private equity maintaining a steady increase of 5% in the same period.

Meanwhile, six months after the implementation phase for the Alternative Investment Fund Managers Directive (AIFMD) ended, Jersey’s private placement route into Europe continues to grow in popularity amongst fund managers. Figures from the JFSC show that 60 alternative investment fund managers (AIFMs) have received authorisation under Jersey’s AIFMD private placement regime, whilst 186 Jersey alternative investment funds (AIFs) are being marketed into Europe through private placement regime. In addition, 14 AIF depositary notifications have now been received under AIFMD from five different Jersey AIF depositary service providers.

Geoff Cook, Chief Executive, Jersey Finance, commented:

“The 2014 figures for Jersey’s funds industry make impressive reading. Not only has the value of funds business reached its highest level since 2008, but the sizeable annual increase of almost 20% is particularly pleasing in a global fundraising environment that is still relatively challenging. This growth is symptomatic of the confidence alternative funds professionals have in Jersey and why a number of major alternative fund houses have made the move to establish or expand their presence in the jurisdiction recently.”

Ben Robins, Chairman, Jersey Funds Association, added:

"The fact that there has been a strong upward trend across the core private equity, real estate and hedge fund asset classes as well as the debt and infrastructure fund spaces in the six months since AIFMD was implemented is clearly pleasing. The number of Jersey domiciled managers receiving authorisation to privately place and the number of funds being marketed into Europe through private placement under AIFMD is on the rise, and this goes to show that managers clearly like the flexibility and robust nature of Jersey’s regulatory framework.”

The warm reception afforded to private placement under AIFMD and trends within the European fund structuring arena, including ESMA’s recent call to evidence, will feature on the agenda at Jersey Finance’s Annual London Funds Conference, entitled ‘Winning Moves’, on 19th March. The event will also feature discussions on the global regulatory landscape and trends in real estate and infrastructure investment fund structuring from the US, Middle East and Asian investors. Further information can be found at jsy.fi/jflfunds2015, where places can also be booked.

JFA News
Monday
01
December 2014

Jersey Finance Questions ALFI Onshoring Claims

Responding to a recently published report commissioned by the Association of the Luxembourg Fund Industry (ALFI), Jersey Finance and the Jersey Funds Association have disproved ALFI claims that the Channel Islands are “not faring very well” in a post-AIFMD climate.

Responding to a recently published report commissioned by the Association of the Luxembourg Fund Industry (ALFI), Jersey Finance and the Jersey Funds Association have disproved ALFI claims that the Channel Islands are “not faring very well” in a post-AIFMD climate, with current data showing Jersey has never been more popular for alternative funds.

Geoff Cook, CEO, Jersey Finance, said:

“The recently commissioned report appears to base its findings on historic data from 2010 to 2013, a period of pre-AIFMD uncertainty before future third country marketing routes into the EU were confirmed, and on ‘estimates’ of the consultant mandated to prepare the report. In fact, official figures since the AIFMD was implemented in July 2013, tell a very different story to that put forward by ALFI.

“As far as new fund launches are concerned, the independent Monterey Insight Fund Report for 2014 confirmed that 171 new funds were launched in Jersey in the period from June 2013 to June 2014, compared to 78 in the same period from June 2012 to June 2013 - more than a 100% increase in the period since AIFMD was implemented. The total value of funds being administered and managed in Jersey has also grown by around 5% year-on-year to stand above the £205bn mark as at September 2014, according to the official statistics of the Jersey Financial Services Commission. The Commission's data also shows the specific value of private equity business has almost doubled over the past five years, whilst Europe's largest private equity fund raised in recent years enjoyed its final $10bn closing from a Jersey management platform. Real estate funds business has risen considerably and consistently too, and by around 50% over the last five years.”

Ben Robins, Chairman of the Jersey Funds Association, added:

“Gaining insight into how the AIFMD is bedding down in Europe is helpful, but it is patently obvious that ALFI's suggestion, based on historic data and ‘estimates’, that Jersey might be ‘not faring very well’ in the new AIFMD environment are unsupported by official, independent statistics available in 2014. It is very important that accurate, up-to-date, data is available to the market.

“Recent statistics also indicate a strong take-up in Jersey's private placement route into Europe since July 2014. 176 Jersey funds and 49 Jersey fund managers are already actively marketing into the EU with authorisation from Jersey’s regulator under private placement regimes, and undoubtedly the trend evidenced across managers in Jersey this year has been one of building significant future management substance. The recent arrival of BlueCrest in Jersey underscores the jurisdiction's continuing appeal to blue chip promoters.

“These facts and figures evidence the positive impact of AIFMD in Jersey, where the operation of EU private placement, our readiness for third country passporting equivalence and our ability to operate outside the AIFMD environment where there is no EU marketing points to something more significant than ‘business as usual’. The statistics demonstrate steady growth and suggest the successful, tried and tested Jersey model will continue to support discerning and successful managers and investors into the future.”

JFA News
Monday
08
September 2014

Funds value passes GBP200 billion mark during stable quarter

The latest figures for all sectors of Jersey’s finance industry show stability and signs of new growth, led by the funds sector where the value of funds business passed through the £200 billion mark for the first time since June last year.

The latest figures for all sectors of Jersey’s finance industry show stability and signs of new growth, led by the funds sector where the value of funds business passed through the £200 billion mark for the first time since June last year.

The statistics highlight that the net asset value of funds increased by £5.1 billion in the second quarter of 2014 to just over £200 billion, with the increase most notable in real estate funds which shows growth of nearly 20% during the quarter. Geoff Cook, chief executive, Jersey Finance Limited, described the picture overall as showing ‘clear signs of recovery’.

The latest statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 30th June, 2014. Headline figures include:

•    The net asset value of funds under administration increased by £5.1bn from £195.3bn to £200.4bn during Q2 2014.  The total number of regulated collective investment funds decreased by 54 from 1,337 to 1,283 over the same period.

•    Consent was granted in respect of 27 COBO only Private Placement funds with a reported total NAV of £593m.
•    The total number of unregulated funds increased by 3 from 199 to 202 during the second quarter.
•    The value of total funds under investment management decreased slightly by £0.4bn from £22.2bn to £21.8bn during the second quarter of 2014.
•    The total number of live companies increased by 506 to 33,207 at the end of Q2 2014.

Geoff Cook, Chief Executive, Jersey Finance, commented:

‘The latest statistics show another quarter of stability in the performance of the finance industry.  The increase in funds business is due to the general improvement in market conditions, specifically in property fund valuations. The increase also takes into account a number of new fund launches established in the last few quarters reporting for the first time, while the reduction in the number of regulated funds relates to relinquished certificates for funds which have become inactive.

He added:

“It was encouraging to see an increase in the number of Jersey companies, now the highest number of company incorporations since 2008 and with the recent introduction of innovations to our companies law on the statute, Jersey is an even more attractive proposition for investment structuring, asset holding and a wide variety of other purposes. The strength of the industry continues to be in its diversity and it is very encouraging to see clear signs of recovery across a range of sectors.”

JFA News
Wednesday
12
June 2013

Positive first quarter of 2013 for Jersey’s funds sector

Jersey’s finance industry reported a positive first quarter of 2013, with the value of funds being administered increasing to their highest level in four years.

Jersey’s finance industry reported a positive first quarter of 2013, with the value of funds being administered increasing to their highest level in four years.

Within the funds sector, the total net asset value of funds under administration in Jersey surpassed the £200bn barrier for the first time since March 2009, showing a quarterly increase of 6.5% to stand at £205.3bn. There was also a £1.5bn rise in the value of funds under investment management, to stand at £22.7bn at the end of the three month period.

The latest statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31st March 2013. Headline figures across all sectors of the industry include:

  • The net asset value of funds under administration increased by £12.5bn from £192.8bn to £205.3bn during Q1 2013.  The total number of regulated funds increased by 7 from 1,388 to 1,395 over the same period. The total number of unregulated funds increased by 2 from 182 to 184 during the quarter.
  • The value of total funds under investment management increased by £1.5bn from £21.2bn to £22.7bn during the first quarter of 2013.
  • The total number of live companies increased by 287 to 32,790 at the end of Q1 2013.

Geoff Cook, CEO, Jersey Finance

Geoff Cook commented:

‘’All sectors of Jersey’s finance industry reported good growth performance during the first quarter of 2013. Our funds sector accounted for the strongest growth with a 6.5% increase in the net asset value of funds under administration.  The largest contribution came from the private equity and venture capital asset classes where a £4bn increase was noted and hedge funds reported a £2.7bn increase.

“In addition, the investment management sector grew its assets by 7.2%.  Jersey is home to several big brands in the asset management industry as well as a number of investment management houses offering boutique services.

“These latest statistics are extremely positive.  Jersey has a strong growth plan in place for its finance industry and we are confident our jurisdiction will continue to instil confidence with investors for many years to come.”

Nigel Strachan, Chairman, Jersey Funds Association

Nigel Strachan added:

“Particularly ahead of the introduction of the Alternative Investment Fund Managers Directive in July, it is pleasing that our funds industry continues to show strong signs of growth. Not only are new funds being launched in Jersey, with numbers of regulated and unregulated funds both increasing, but positive performances specifically in the private equity, venture capital, real estate and hedge fund asset classes reflect the confidence the international funds community has in Jersey as a specialist alternative funds centre in the long-term.”

JFA News
Wednesday
06
March 2013

Funds sector shows increases reflecting a stable year for Jersey’s Finance Industry

Jersey’s finance industry has reported a steady performance during 2012 with the size of the fund administration business increasing year on year.

Jersey’s finance industry has reported a steady performance during 2012 with the size of the fund administration business increasing year on year.

The total net asset value of funds under administration stood at £192.8 billion at the end of the year, up from £189.5 billion in the three month period. The value of the funds business has risen overall during 2012 by just over £3 billion.

The latest statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31st December, 2012. Headline figures include:

•    The net asset value of funds under administration increased by £3.3bn from £189.5bn to £192.8bn during Q4 2012. The total number of regulated funds decreased by 4 from 1,392 to 1,388 over the same period. The total number of unregulated funds increased by 7 from 175 to 182 during the fourth quarter.

•    The value of total funds under investment management increased by £0.3bn from £20.9bn to £21.2bn during the fourth quarter of 2012.

•    The total number of live companies stood at 32,503 at the end of December 2012.

Geoff Cook, CEO of Jersey Finance

Geoff Cook commented:

“Jersey’s finance industry performance remained steady in the twelve months ending December 2012, and with the total net asset value of funds under administration increasing in the final quarter there are positive signs for the year ahead. The investment management sector is also showing stable business results.

"In the funds sector, the net asset value of specialist funds saw the biggest increase by £2.3bn, with the value of private equity funds growing by 2.2% and the value of hedge funds increasing by 2%. Jersey is also well on track with the implementation of the AIFMD regime and remains a first choice jurisdiction for fund managers and funds.’’

JFA News
Friday
07
December 2012

Jersey's Finance Industry Reports Stable Performance in Third Quarter

The most recent figures on the performance of Jersey’s Finance Industry point once more to a stable picture, with funds business up on the previous quarter.

The most recent figures on the performance of Jersey’s Finance Industry point once more to a stable picture, with funds business up on the previous quarter.

The statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 30th September 2012. Headline figures across all sectors of the industry include:

  • The net asset value of funds under administration increased by £0.1bn from £189.4bn to £189.5bn during Q3 2012.  The total number of regulated funds increased by 12 from 1,380 to 1,392 over the same period. The total number of unregulated funds increased by 3 from 172 to 175 during the third quarter.
  • The value of total funds under investment management increased by £0.2bn from £20.7bn to £20.9bn during the third quarter of 2012.
  • The total number of live companies stood at 32,628 at the end of September 2012.
Heather Bestwick, Deputy Chief Executive of Jersey Finance

Heather Bestwick commented:

“We have seen a stable performance for the finance industry during the third quarter of 2012. The funds sector continues to do well with the number of funds growing by 12 during the third quarter of 2012.  Specialist funds such as hedge, private equity and real estate represented 70% of the total net asset value of funds under administration at the end of the third quarter demonstrating that Jersey’s expertise in these asset classes is widely recognised and reflecting the confidence fund professionals continue to have in Jersey ahead of the introduction of the AIFM Directive.

“In these volatile times international investors are looking for stability, a secure finance environment, innovation in products and a quality service offering and Jersey continues to provide such a combination, which is helping us maintain our appeal to international investors.”

JFA News
Wednesday
06
June 2012

Jersey’s funds sector shows strong growth during first quarter of 2012

The latest figures tracing the performance of Jersey’s finance industry reveal particularly strong growth in its funds sector during the first quarter of 2012.

The latest figures tracing the performance of Jersey’s finance industry reveal particularly strong growth in its funds sector during the first quarter of 2012, with a 3.5% increase in the net asset value of funds under administration and a total of 1,412 funds registered, the highest figure since 2009.

In further good news for the funds sector, the total number of unregulated funds, geared towards sophisticated, professional and institutional investors, also increased by an impressive 8.5% whilst the number of regulated funds grew by 1.4%.

The statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31st March 2012. Headline figures across all sectors of the industry include:

  • The net asset value of funds under administration increased by £6.8bn from £189.4bn to £196.2bn (3.5%) and the total number of regulated funds increased by 20 from 1,392 to 1,412 (1.4%) over the same period.
  • The total number of unregulated funds increased by 13 from 153 to 166 (8.4%) during the first quarter.
  • The value of total funds under investment management increased from £20.8bn to £21bn (0.9%) during the first quarter of 2012.
  • The total number of live companies stood at 32,816 at the end of March 2012.
Geoff Cook, Chief Executive of Jersey Finance

Geoff Cook commented:

“There is no doubt that 2012 will be a decisive year.  Market participants are preparing for the worst with the Eurozone crisis taking on worrying proportions and economic uncertainty continuing to have a negative impact on growth.

“The funds sector performed well and saw a 3.5% increase in the net asset value of funds under administration, the total number of regulated funds grew by 1.4% and the total number of unregulated funds increased by 8.4%. Regulated fund stocks at 1,412 registered the best performance since 2009. The investment management sector saw a 1% increase in the value of assets under investment management during the first quarter of 2012 and 646 new companies were formed.

“In these uncertain times there is a strong demand from investors for high quality safe harbours like Jersey and we are well placed to benefit from this demand.  We believe that Jersey’s long-term perspective, stability and continued drive for innovation are extremely attractive to investors worldwide.’’

Nigel Strachan, Chairman of the Jersey Funds Association

Nigel Strachan added:

“That the number of funds in Jersey is at its highest level since early 2009 is clearly good news, whilst it is particularly pleasing that Jersey continues to assert its strengths as a specialist centre for alternative funds. As well as the number of unregulated funds continuing to grow strongly, the value of specialist funds, including private equity, real estate and hedge, grew by over 4% over the quarter to represent 70% of the total value of funds under administration. As we gear up to embrace the AIFM Directive, that fund professionals and investors are showing such confidence in Jersey is hugely encouraging.”

JFA News
Tuesday
06
December 2011

Positive news for funds in latest finance figures

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.

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

Nigel Strachan 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.”

JFA News
Tuesday
27
September 2011

Jersey remains top offshore centre in latest GFCI

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.

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.”

JFA News
Monday
05
September 2011

Positive Performance for Jersey's Funds Industry

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%.

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.’’