Alternatives drive Jersey funds levels to record high
The value of funds being administered in Jersey rose to a record level at the end of 2016, the latest figures to be published by the jurisdiction’s financial regulator have shown.
In the final quarter of 2016, the total value of funds being serviced through Jersey rose by 15% over the year to stand at £260bn (US$335bn), the highest value ever recorded. This growth was driven by the alternative asset classes, which increased annually by the same proportion to £189.2bn (US$243.8bn), representing almost three quarters (73%) of Jersey’s total funds activity.
Within the alternative asset classes, private equity fund values performed particularly strongly, rising by almost a third year-on-year (30%) to stand at £59.7bn (US$77bn), whilst there was a significant jump in the combined total of ‘specialist’ funds, including infrastructure, credit and debt funds (48%). Real estate fund values also rose by 7% during the course of the year, whilst hedge fund values remained steady, ending the year at £52.4bn (US$67.5bn).
Commenting on the figures, Jersey Finance CEO Geoff Cook said: “These are clearly very encouraging figure for 2016, and support the view that, in an uncertain market, Jersey is an attractive, stable and effective platform for alternative fund managers. We are a well-governed, risk-averse, outward-looking jurisdiction with ongoing European market access and strong links to the UK, and all that is proving an attractive proposition for managers and investors looking for stability and certainty.”
Mike Byrne, Chairman of the Jersey Funds Association added: “It’s a powerful global endorsement of Jersey that some of the highest value funds in the world are deciding to launch in Jersey and a number of new promoters are now using Jersey for the first time. Moreover, current trends indicate that asset managers are set to substantially increase their allocation in alternatives over the coming months, which puts our buoyant funds industry in a very strong place indeed.
“We’re not complacent though, which is why we’re continuing to focus on innovation within our funds regime. The launch in March of our new fast-track Jersey Private Fund is an example of that, and we are already seeing strong interest in that as a vehicle for institutional and high net worth investors to bring highly targeted and timely funds to market.”