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

September 20, 2019

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.