New regulation, both domestic and international, is creating significant opportunities for Jersey’s funds sector – but at the same time is requiring industry participants to be more agile than ever before, according to speakers at a recently held Masterclass event organised by the Jersey Funds Association (JFA).

Expert speakers at the recent event, held in September at the Royal Yacht Hotel and attended by over 50 industry representatives from Jersey's funds sector as well as colleagues from the Government of Jersey and the Jersey Financial Services Commission (JFSC), provided valuable insights into the evolving regulatory environment and the impact on Jersey’s funds sector.

In particular, the event emphasised the significant ongoing regulatory changes in both the UK and EU, including the UK’s ongoing efforts to enhance its ecosystem for asset managers and the EU’s review of the AIFMD. Prem Mohan, Partner at Kirkland and Ellis, highlighted how evolutions to AIFMD II could bring greater compliance challenges, whilst also pointing to how National Private Placement (NPP) arrangements, such as those through Jersey, still provide a good route to EU capital for non-EU managers with the current expectation that the NPP regime will remain in place for the mid-term.

Helen De La Cour, Director of Financial Services for he Government of Jersey highlighted Jersey's focus on developing regulation to ensure inclusive and appropriate access to financial services while being committed to enabling the funds sector to continue to grow and innovate.

David Eacott, Executive Director of Supervision at the Jersey Financial Services Commission (JFSC) shared his observations on Jersey's funds sector from his first half-year in post leading the JFSC's supervisory activities. David pointed to tokenisation and digital assets being very much on the JFSC's agenda.

Closing the session, David Postlethwaite, Sustainability and ESG Lead at KPMG, explored how ESG regulation was being integrated across the funds sector and how managers were having to increasingly apply an ESG lens to their due diligence procedures – something that is driving greater data sophistication when it comes to reporting and disclosure.

Jon Stevens, Chair of the JFA’s Regulatory and Compliance Sub-Committee and Deputy Managing Director of Mourant Consulting, hosted the event. He commented:

"Our latest Masterclass offered our broad funds sector a valuable opportunity to delve into crucial areas of regulatory progress. It’s clear that regulation in multiple areas – from sustainable finance and digital assets to domestic compliance and shifting international standards– are all impacting our industry, and firms at all levels of the supply chain are having to be nimble in responding to those changes.

“At the same time, Jersey has an opportunity to playa role in the inter-operability of these regulatory changes – helping investors to navigate and make sense of what it all means, across borders. And that will be an invaluable role for Jersey's funds practitioners to play in the years to come. Against that backdrop, I’m really pleased that there was such strong interest in our latest Masterclass event.”

Further details about the JFA’s Masterclass series and other events can be found here.

By Richard Anthony, JFA Committee Member and Head of Aztec’s Jersey Real Assets Team

UK real estate has long been an attractive sector for global investors – but for various reasons, it is currently not without its challenges.

It is also a sector where Jersey firms have considerable experience, with members of the Jersey Funds Association being fortunate enough to work with some of the top real estate fund and asset managers globally and specifically in the UK.

This piece provides a snapshot of the key issues currently facing the real estate sector, through the lens of our clients and investors.  

The Rise of Inflation

UK inflation has continued to rise sharply in recent months, with 2022 seeing the highest rate reached in over 40 years. As central banks aim to control inflationary pressures, interest rates have also risen in dramatic fashion.

This has undoubtedly influenced investor sentiment towards UK investment, the ability to generate attractive returns on existing portfolios and to secure financing for new projects, not to mention the impact on valuations. Speaking of which…

Uncertainty Surrounding Valuations

Asset valuations in UK real estate have become increasingly uncertain and downward adjusted in various sub-sectors, particularly in the commercial real estate sector - with various factors contributing to this challenge.  

As a result, deal flow has been impacted, with potential sellers not wishing to sell and potential buyers considering whether we are really at the floor of the market, keeping their capital dry or attempting a cheeky chip on price while at the heart of a transaction.  

On the upside, various asset and fund managers are hopeful for a bounce in the final quarter of 2023 and moving into the start of 2024, with fingers crossed for the plateau and descent of interest rates, which will bolster market sentiment.

Ability to Raise and Retain Capital

Fund managers in the UK real estate sector face the ongoing challenge of raising capital for their funds.

With increasing competition and changing market dynamics, attracting investors and securing commitments can be a daunting task. Investors are becoming more discerning, seeking transparency, track records and granular level due diligence.

Additionally, many open or quasi open-ended funds are having to work hard to maintain liquidity, as certain investors look to re-allocate or withdraw capital from the sector.  

In the current environment, fund managers must demonstrate their ability to deliver attractive risk-adjusted returns and navigate market uncertainties to gain the confidence of potential investors.

ESG Impact

In recent years, there has been a growing emphasis on environmental sustainability and energy efficiency in the real estate industry.

Buyers and sellers are increasingly considering Energy Performance Certificates (EPC) and BREEAM ratings when evaluating commercial buildings. This "flight to quality" trend means that buildings with higher ratings are more likely to attract buyers and command higher prices.

On the flip side, other buildings with lesser ratings are becoming harder to sell, forcing the need to either make further capital investment, or exit at less attractive valuations.

Jersey’s Role

Whilst the above challenges are undoubtedly shaping the UK real estate industry at present, and may persist for some time, members of the JFA continue to actively facilitate high quality capital flows into the sector through Jersey domiciled structures.

Why? The Island has a vast pool of industry leading legal and professional firms with talented real estate professionals. The legislation, regulation and taxation applicable to investment structuring is finely tuned, incredibly robust and sufficiently flexible to meet the needs of most investors.  

If you are considering an investment in real estate through a fund or corporate structure, consider Jersey.

The Jersey Funds Association (JFA) was delighted to welcome so many people to a networking event last month, as part of its support of the LEAP Jersey programme this year.

The innovative leadership and entrepreneurship programme, organised through the Jersey College Foundation,  aims to foster female talent from across the globe by offering female students aged between 14 and 18 the opportunity to develop their business acumen before pitching for funding to finance a social enterprise project.

The event was held on 19 July at the Radisson Blu Waterfront hotel and involved more than 30 local companies as well as all the participants in this year's programme, who hailed from countries including Australia, China, Japan, Rwanda and the USA, as well as Jersey.

It formed part of the 10-day programme, during which participants received advice from a variety of mentors and experts before putting their ideas to a ‘Dragon’s Den’ style panel of judges.

Attendees at this year’s Jersey Funds Association Annual Dinner have helped raise a bumper total to support Kezia’s Fund, a fund which is managed by the Jersey Community Foundation.

More than 400 people from across the industry attended this year’s Dinner, held at the Trinity Showground on 14^th July, who between them helped to raise £12,500 towards Kezia’s Fund, thanks to a raffle held during the evening.

Kezia’s Fund aims to support mental health among children and young people aged 5 to 25 and their families in Jersey; and provides grants and support to organisations that work to improve children and young people’s mental wellbeing. 

Anna Terry, CEO of the Jersey Community Foundation said:

“This funding will continue the legacy of Kezia's Fund, ensuring that the substantial funds raised are used to address the prevalent issue of child and young people’s mental health in Jersey. We are extremely grateful to the Jersey Funds Association for supporting Kezia’s Fund at their dinner this year and we would like to thank everyone who generously donated on the evening”.

Michael Johnson, JFA Chair, commented:

“This year’s dinner provided us with an opportunity to consider our role in the local community and with that in mind I’m really pleased that, thanks to the generosity of those who came along to our Dinner this year, we managed to raise such a good sum to support the work undertaken through Kezia’s Fund.”

Donations to Kezia’s Fund can be made here.

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Representatives from across Jersey’s funds industry came together this month to celebrate the ongoing growth of the sector and discuss key trends shaping the future alternative funds landscape.

More than 400 people from across the industry, including lawyers, service providers, managers and accountants as well as politicians and regulatory representatives, attended this year’s Jersey Funds Association (JFA) Annual Dinner, held at the Trinity Showground on 14^th July.

Held each year, the event brings together Jersey’s funds community and serves to highlight key developments and trends in the market and point to the work undertaken by the JFA.

Speaking at the event, Michael Johnson, JFA Chair, told the audience that it had been another successful year for the funds industry, with the growth in fund managers in the jurisdiction in particular proving to be a critical element of Jersey’s funds infrastructure, against a backdrop of increasing regulation and a growing emphasis on substance.

With figures in early 2023 indicating that the total net asset value of funds under administration in Jersey stood at a record high of more than half a trillion pounds (£523bn), Michael said:

“We have a buoyant and active community, both in the funds and the fund manager space. In fact, we see an ever-increasing community of managers fully resident in the island across private equity, hedge funds, venture capital, debt and real estate. These managers are bringing a real depth and diversity to our industry, at a time when substance continues to be high on the agenda.”

Michael pointed in particular to the ongoing success of the Jersey Private Fund structure (JPF), with more than 600 having now been established in total – meaning that the number of JPFs has now overtaken collective investment funds in Jersey for the first time. He added:

“In particular, alternative funds now represent 90% of our total funds business, with private equity and venture capital making up 44% of total funds business undertaken in Jersey. It has created a very stable platform of long-term capital, largely insulated from short term market sentiment.”

However, Michael also urged caution around the potential impact of the ongoing high inflation environment on Jersey’s funds sector, given its weighting towards alternatives, and the need for the industry to embrace innovation in an increasingly complex and uncertain environment:

“Recently two-year UK Gilts stood at 5.5% and are expected to surpass 6% in the next year. That’s the benchmark for the risk-free rate – the key hurdle for allocators when determining allocations to portfolios. Not only that but allocators are also contending with the denominator effect, further impeding their sentiment and ability to continue to allocate so freely to closed-ended alternatives. We cannot ignore some significant sectors are likely to be impacted – real estate, a key area of Jersey, being one.

“As we cross the rubicon to a higher interest rate environment, embracing innovation, being agile and looking at our product range to see how we can introduce a wider choice of products and services will be vital. It’s why this year the JFA has established an innovation sub-committee, as we look to gather critical momentum in affirming Jersey’s reputation as forward-thinking, truly innovative funds domicile.”

Gold sponsor for the evening was Mourant and silver sponsors were BNP Paribas, Hawksford, Ogier and PwC, whilst the champagne reception was sponsored by Carey Olsen and the NextGen table was hosted by KPMG. Entertainment at the event was provided by comedian and writer Simon Evans.

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New regulation and industry wide adoption of ESG and sustainability metrics have created significant opportunities for service providers, while data management now occupies a central role in achieving ESG compliance, both in the eyes of regulators and investors.

Expert speakers at a recent Masterclass event, organised by the Jersey Funds Association, provided valuable insights into these dynamic developments and their implications for the local industry.

The event, held on 6th June at the Royal Yacht Hotel, attracted over 40 industry participants from Jersey's funds sector. The guest speakers explored various key topics, including the rapidly evolving regulatory landscape, Jersey's potential to grow as a leading centre for ESG funds, the integration of ESG principles in private equity, and the growing importance of data management in the ESG sphere.

The event emphasised the intricate nature of global ESG and sustainable investment regulation, noting the considerable differences in disclosure frameworks between Europe, the US and Asia. The differences present clear opportunities for Jersey domiciled service providers, managers and funds, who may opt in or out of differing jurisdictional frameworks, while relying on the robustness of the JFSC as their home regulator.

As global standards continue to evolve, especially in relation to nature and climate disclosures, the significance of "financial grade" data management is poised to grow. This, according to visiting speaker Antonello Argenziano, creates potential avenues for fund administrators and managers aiming to drive progress and differentiate themselves.

The speakers highlighted Jersey’s strong position, underscoring the alignment of its flexible ESG disclosure framework with international standards and that Jersey implemented anti-greenwashing rules in 2021, with further enhancements in the pipeline.

Tom Powell, Chair of the JFA's ESG Sub-Committee and CEO of Amthe Capital, led the first session on regulation and disclosure. Powell remarked: "Our latest Masterclass offered industry participants a valuable opportunity to delve into crucial areas of regulatory progress in the ESG investment landscape. The rapidly evolving lexicon of acronyms can be overwhelming. There is a genuine sense that Jersey's expertise in administration, data management, risk, compliance, and governance is highly desirable as the industry continues its forward momentum."

He continued: “It’s really important that as a jurisdiction Jersey continues to tell its story in this area, because it has a fantastic story to tell.”

The JFA thanks all those who attended and facilitated the event. More about Jersey’s proposition in sustainable finance can be found here.

The speakers at the masterclass were: Tom Powell, CEO of Amthe Capital - Jersey; Alison Cambray, ESG, Sustainability & NetZero Director at PwC Channel Islands; David Postlethwaite, ESG Associate Director at KPMG in Jersey; Antonello Argenziano, Product Director at Intertrust Luxembourg; and Jane Burns, Sustainability and Climate Change Engagement Manager for the Government of Jersey.

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The Jersey Funds Association (JFA) is supporting an innovative leadership and entrepreneurship programme, organised through the Jersey College Foundation, that aims to foster female talent from across the globe.

As the Platinum sponsor of a networking event this summer, the JFA is supporting this year’s LEAP Jersey programme which offers female students aged between 14 and 18 the opportunity to develop their business acumen before pitching for funding to finance a social enterprise project.

The event forms part of a 10-day programme, during which participants will receive advice from a variety of mentors and experts ahead of putting their ideas to a ‘Dragon’s Den’ style panel of judges where the winning idea will be awarded £2,000.

Held on 19 July at the Radisson Blu Waterfront hotel, the networking event will involve more than 30 local companies and celebrate the participants, who hail from countries including Australia, China, Japan, Rwanda and the USA. It will also give all interested parties an opportunity to learn more about the programme, the participants’ various project ideas, network and drive the cause of increased female leadership and entrepreneurship.

Commenting, Michael Johnson, Chair of the JFA, said: “Championing young female entrepreneurs is vital for our industry, for Jersey and for business more widely, to ensure we a have diverse and expert talent pool in the future. It is an honour to be able to support a programme aimed at nurturing the skills needed to be a female leader of tomorrow.”

Chair of the JFA’s ESG sub-committee, Tom Powell, added: “This programme offers a fantastic opportunity to develop business, entrepreneurial and leadership skills as well as to experience a real-life business pitch scenario. We are delighted to be able to support so many budding business leaders from home and further afield to develop such skills.”

More information, including on how to register to take part, can be found here.

Jersey’s funds industry is maintaining its upward trajectory – but evolution in the market, regulatory change and competition means that the Jersey Funds Association (JFA) is busier than ever, according to committee members speaking at the JFA’s recent Chairman’s Update event.

Held at the Pomme d’Or recently (1 March), the event saw Chairman Michael Johnson and Vice Chairman Joel Hernandez assess the current landscape and set out some of the priorities for the JFA over the coming year, whilst sub-committee heads also took part in a Q&A session highlighting some of the trends, challenges and opportunities on the horizon.

Pointing to the fact that the value of assets serviced in Jersey rose to new record levels of more than £0.5trn in 2022,Michael also emphasised how important it was to be alive to the potential for change in the wider landscape:

“Our figures continue to illustrate an upward trend, but it’s really important we stay ahead of the curve and anticipate regulatory change and shifts in investor behaviour to maintain our attractive ecosystem for alternative funds.

“Speed to market, cost-effectiveness and service quality are absolutely crucial in our segment of the alternatives market and we are fully focused not only on safeguarding our position but on enhancing our proposition in those areas. On the ESG front, for example, the key is to establish a robust framework but without creating hurdles, whilst on the innovation front we see opportunities to build up a track record in blockchain, tokenisation and digital assets.”

Joel added:

“From a legal and technical perspective, it has never been busier in terms of the need to respond to consultations and international and domestic regulatory change – such as looking at our AML/CFT frameworks, enhancing our range of fund structures and regimes, and ensuring we keep the cost of doing business with Jersey competitive.  We are fortunate in the JFA to have broad and diverse expertise through our membership to support our efforts in these areas.”

The JFA will be holding a series of further events for members over the coming months to explore key areas of note for the industry, including a Legal and Tax Masterclass (20 April) and two Town Hall events on ESG (15 May) and Digital (5 June). The JFA’s annual dinner has also been confirmed for 14 July. Further information can be found via the JFA website.

New Limited Liability Company (LLC) legislation can significantly enhance Jersey's proposition as a leading jurisdiction supporting US alternative fund managers.

Officially approved by the Government of Jersey this week (7 February), the law, which enters into force on 14 February, expands Jersey’s existing comprehensive suite of private fund vehicles, adding a new structure that is intended to be familiar to US private equity, venture capital and other alternative fund professionals.

Benefitting from a simple registration process and flexible governance requirements, the Jersey LLC, which will have separate legal personality and can be classed as a ‘body corporate’, is expected to offer a number of key opportunities, including being used for issuing securities, as a manager vehicle, and as a fund entity in conjunction with the hugely successful Jersey Private Fund (JPF) regime.

The structure also provides certainty for US managers looking to fundraise within the EU, with the Jersey LLC able to market into Europe, subject to the usual fund permissions from the Jersey Financial Services Commission (JFSC), under the Alternative Fund Managers Directive (AIFMD) third country private placement rules.

Elliot Refson, Head of Funds, Jersey Finance, said: “Following a period of extensive consultation, the introduction of the Jersey LLC is a significant development for Jersey’s funds sector and bolsters our ability considerably to support US fund managers.

 “The Jersey LLC has been deliberately and specifically developed to be a structure US managers and investors are familiar with, backed up by Jersey’s world-class ecosystem for cross-border alternative funds, our leading regulatory framework and our position as a non-EU European time-zone hub.

“Through the Jersey LLC, US fund managers will now be able to take advantage of seamless marketing into the EU via national private placement regimes, underlining our proposition as the ideal gateway into Europe.”

 Philip Pirecki, Jersey Finance Lead in the Americas, added: “LLCs are hugely popular in the US private markets space, with advisers, managers, and investors very familiar with the structure. In that light, we see significant opportunity for the Jersey LLC to support their needs.

 “Since opening our office in New York three years ago, we have seen our book of US business increase significantly. By adding the LLC structure to our proposition, we are expanding our solutions for the US market even further, as we look to meet the cross-border needs of US managers and sophisticated investors.”

Michael Johnson, Chair of the JFA, commented: “The funds industry has seen a sustained increase in business from the US over recent years, particularly as alternative managers have sought to draw on Jersey’s platform for accessing EU investor capital efficiently. The introduction of the long-awaited Jersey LLC meets a growing need in that light, offering a vehicle that is familiar to managers but at the same time that offers all the benefits of Jersey as an expert and well-regulated alternative funds centre in Europe. We expect to see strong appeal for the LLC in the months ahead from managers across the private equity and venture capital space.”

The introduction of the Jersey LLC follows a period of sustained growth for Jersey’s funds industry in relation to the US market, with funds business from US promoters more than doubling over the past five years.

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Professionals from across Jersey’s funds sector including lawyers, administrators, NEDs and compliance specialists, heard from the JFA’s Legal and Technical Sub-Committee this week, at a briefing outlining some of the measures the industry is taking to maintain Jersey’s leading position as a centre for alternative funds.

A number of speakers from the sub-committee, including Chris Patton, Head of Private Equity, Intertrust Group, Simon Burgess, Fund Advisor and Non-Executive Director, and Matt McManus, Managing Associate, Ogier, discussed a range of areas of regulatory and legislative focus for the JFA, including the recent JFSC AML Exemptions Consultation Paper, a JFSC Outsourcing Paper and JFSC Consultation on Senior Management.

The session was hosted by Joel Hernandez, Head of Funds, Mourant, Vice Chair of JFA, and Chair of the JFA Legal and Technical Sub-Committee, who said:

“Our role as a sub-committee is to look at ways to defend and develop our industry from a legal and technical perspective, working with other stakeholders and organisations, to enhance Jersey’s proposition and add value to the funds sector. The fact that so many people joined us for this session reflects the appetite to support the evolution of Jersey’s funds industry, which is fantastic to see.

“The most recent figures for our funds industry were extremely positive, with AUM and AUA reaching record levels yet again. It’s clear though, that there is a huge amount of work being undertaken by the JFA to maintain our position and appeal in a landscape that is extremely competitive and increasingly influenced by international regulatory and compliance pressures – and this is what the session really focused on.

“From looking at our AML/CFT frameworks and how we can keep the cost of doing business with Jersey competitive, to enhancing our Jersey Private Fund regime, as well as honing our ecosystem for virtual assets – there is a lot that the Committee has been working on. On balance, we feel that Jersey remains in a strong position, given the support of the JFA's members and its other partners.”

Following its recent Annual General Meeting (8 July), the Jersey Funds Association (JFA) has elected a new-look committee as it continues to champion Jersey's ecosystem for alternative funds.

With outgoing Chairman Tim Morgan completing his three-year tenure, Michael Johnson takes over the role, with Joel Hernandez taking on the position of Vice Chairman. Michael is Group Head of Institutional Services at Crestbridge, whilst Joel is a Partner at law firm Mourant.

The new committee features some continuity whilst also introducing a number of new faces, with Robin Wilson, Sophie Reguengo, Stephanie Hopkins, Clive Spears and John Riva all joining. Remaining on the committee this year are Richard Anthony, Mike Byrne, Steve Cartwright, Ben Dixon, Ben Honeywood, Dilmun Leach, Robert Milner, Tim Morgan, Simon Page, Martin Paul, Tom Powell, Peter Rioda, Ben Robins, Martin Rowley, Sarah Sandiford and Elliot Refson.

At the AGM, outgoing JFA Chair Tim Morgan, who is a Partner at law firm Maples, provided an assessment of achievements and highlights from the past year:

“Jersey's funds industry continues to operate in a fast-evolving market, with regulatory, economic and geopolitical uncertainty continuing to pose challenges – but the fact that Jersey’s funds industry succeeded in reaching new record highs of assets under administration in 2022 and in each of the past three years speaks volumes about the appeal of Jersey’s platform of stability. As ever we need to continue to work hard to underpin this.

“Reflecting on the past three years, there’s no doubt it has been a busy but exciting time to lead the JFA, through a complex period encompassing the implications for Jersey of the effects of Brexit, to the challenges of the global pandemic, to on going enhancements to Jersey’s international standing for tax and regulation. It is a credit to the committee and to the wider industry that Jersey’s funds offering has gone from strength to strength throughout this period. I’m really grateful for the efforts of all those who have given their time to the committee, including Caroline Harrington, who is retiring from her role as secretary of the JFA after many years. We have achieved a lot – from navigating tax and regulatory changes, to integrating ESG into our thinking and supporting cutting-edge training for our members.”

Meanwhile, newly appointed JFA Chairman Michael Johnson added:

“There’s no doubt that the landscape continues to pose challenges. Geopolitical developments have significantly worsened since the increased hostilities in Ukraine, and from a macro-economic perspective, inflation rates, interest rate changes and other economic indicators are pointing to a significantly more challenging economic environment. Jurisdictionally, the competitive environment remains intense and evolving too.

“But there is plenty for Jersey to be positive about. We have a compelling proposition, an industry that is growing at an impressive rate, and more and more managers of substance looking at Jersey to support their cross-border needs. Private equity, venture capital and real assets are at the heart of global economic rebuilding efforts, and we have precisely the experience and platform here to support that and make a positive impact.”

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The 2021 JFA Annual General Meeting will take place on Friday 9 July via Zoom. Any member who would like to join the meeting is asked to contact the Secretary at enquiries@jerseyfunds.org for the dial in details.

Any member who is interested in joining the Executive Committee is asked to complete an appropriate nomination form by close of business on Wednesday 7 July 2021. A Nomination Form can be obtained from the Secretary at enquiries@jerseyfunds.org

Accelerated digital adoption, upskilling and product innovation will be key themes for a “confident and ambitious” funds industry in Jersey over the coming years, according to the findings of the third annual survey of Jersey Funds Association (JFA) members.

Presented by JFA Chair and Maples Partner Tim Morgan at a recent virtual event, the findings of the survey, which explored key opportunities and issues for Jersey’s funds industry and the sentiment of practitioners, will be instrumental in informing the JFA’s strategy over the coming years.

Tim was joined at the event by a panel of experts including Mike Byrne, Partner at PwC, Amy Bryant, Deputy CEO at Jersey Finance, Martin Moloney, Director General at the Jersey Financial Services Commission, and Alex di Santo, Group Head of Private Equity at Crestbridge.

Amongst its key findings were that digital transformation will continue to be pivotal to the core operation of funds businesses in Jersey, shaping approaches to regulation, tax and governance over the coming years. Highlighting the impact of Covid-19in particular, 92% of respondents said that the pandemic had changed the way their business uses technology to some degree, with 63% saying it had significantly accelerated digital adoption within their business.

Further, while the vast majority (62%) considered that current skills training was sufficient, around 37% suggested that greater support was needed to support upskilling for a more digitised future.

Meanwhile, on the regulatory front, the survey indicated that Jersey’s response to economic substance rules had been broadly welcomed by the industry, with 42% of respondents claiming that substance rules had had a positive impact on Jersey’s competitiveness, while 70% suggested that Jersey is striking the right balance between ease of doing business and regulation.

It also highlighted that Brexit is still seen as, on balance, a neutral or positive factor for Jersey’s funds industry, with almost a third (31%) of respondents anticipating an increase in business as a result of Brexit.

The survey also painted a picture of an industry that is looking to grow and diversify, with 69% of respondents saying they were confident that their business would grow over the next five years, driven largely by organic growth (69%).

In terms of strategic priorities, both in the short and medium terms, the focus remains on private equity, real estate, venture capital and debt funds, whilst geographically, Jersey’s funds industry is increasingly global in nature, with the US West and East coasts and Middle East markets seen as increasingly important, complementing the existing strong focus on the UK.

Commenting on the findings, Tim said: “Despite the challenges of the last year, Jersey’s funds industry has continued to see hugely impressive growth, with the latest figures for funds business registered in Jersey rising to a new record level of some £378 billion in 2020. The ecosystem Jersey provides for alternatives – its stable platform, quality regulatory framework, expertise and service quality – is clearly resonating with investors, and the outlook for the coming years remains very positive.

“Nevertheless, what this survey shows is that Jersey’s funds industry is both confident and ambitious, and continues to look to push boundaries, innovate and improve. The focus on digital adoption and upskilling comes across clearly this year, with the industry keen to position itself as an authority in the alternatives space, while there are also real ambitions to diversify and grow, including in the ESG space.

“These findings will be vital in informing how we continue to enhance our funds ecosystem, and I’d like to thank our membership for their time and support in putting their views forward.”

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Oakbridge FundServices (Jersey) Limited (“Oakbridge Funds”), a specialist independent fund administrator based in Jersey has launched to service the alternative funds sector.

Expert in the main alternative asset classes with a focus on Private Equity and Venture Capital, Oakbridge Funds will provide administration services to offshore closed and open-ended funds and corporate structures.

The Oakbridge team previously worked together at a pan European multi-jurisdictional fund administration business and have more than 40 years’ experience of working in the fund services sector.

Experienced private equity professionals Robin de Gruchy-Wilson, Alex Smyth and Jonathan Crawford will lead Oakbridge Funds’ operations and service led approach.  Jamie Crawford joins the Oakbridge Funds Board as a Director.  Jamie brings a wealth of financial services and investment knowledge and is a Director of ED Group.  

Oakbridge Funds benefits from the resources and experience of its majority owner, ED Group. ED Group is an investment business with activities in the UK, Europe, North America and theChannel Islands. In Jersey, ED Group also owns a regulated Investment Business, Oakbridge Limited, and a regulated Trust Company Business, ED Capital Limited.

Oakbridge Funds Managing Director, Robin de Gruchy-Wilson, said: ‘We have founded Oakbridge Funds with a clear vision.  We are a dynamic and ambitious team.  We have a clear strategy for growth and our independent ownership structure means we are navigators of our own journey.’

‘Oakbridge Funds’ launch comes at a time when there is demand in the market for a truly independent specialist provider.  We are based in Jersey with a focus on carrying out fund administration for multi-jurisdictional funds using industry leading technology and have no intention to outsource any of this work. We believe in excellence and attention to detail and our experienced Jersey based team is very well placed to achieve this.’

ED Group Director, Jamie Crawford, said: ‘Our venture with Oakbridge Funds echoes ED Group’s ethos of investing in and helping innovative companies grow. We already have substantial experience and resource in the local financial services sector between our existing trust company and investment businesses. We look forward to working with Robin, Alex and Jonathan to grow Oakbridge Funds into a leading specialist administrator in the funds sector. ED Group is delighted to provide a solid foundation for the launch and growth of Oakbridge Funds.’

Oakbridge Funds is regulated by the Jersey Financial Services Commission for the conduct of Fund Services Business and Trust Company Business.

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