Jersey Finance Questions ALFI Onshoring Claims

December 1, 2014

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.”