Private equity drives growth as Jersey funds business reaches new all-time high

March 14, 2019

The value of regulated funds serviced in Jersey saw double digit growth to reach a new all-time high while bank deposits also increased over the course of 2018, according to the latest figures to be collated by the jurisdiction’s financial regulator the Jersey Financial Services Commission (JFSC).

Figures for the final quarter of 2018 (ending 31 December 2018) show that the net asset value of regulated funds under administration in Jersey grew 10% annually to stand at £319.9bn, the highest recorded figure to date, while the value of bank deposits held in Jersey grew 4% to stand at £122.9bn, the highest figure since 2016.

Within the funds industry, the statistics show particularly strong performances in the alternative asset classes, which now represent 86% of Jersey’s total funds business recorded a year-on-year increase of 23%. Specifically, private equity fund values rose by 38% over the year to cross the £100bn mark for the first time ever and finish the year standing at £114.5bn.

Meanwhile, the combined total value of infrastructure, credit and debt funds also showed impressive growth, increasing by 28% to stand at £64.8bn while the value of real estate funds grew by 10% to £41.4bn and hedge funds increased by 3% to £52bn.

JFSC data also shows that there were 205 Jersey Private Fund (JPFs) registered in Jersey at the end of December 2018, although the value of assets they manage, which totaled £19.4bn according to the latest statistics reported by the JFSC, is not included in these quarterly figures.

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

“These are really strong figures for the 2018, clearly demonstrating that Jersey is continuing to provide a solid, resilient platform for international investors and an attractive proposition for fund managers. Over the past five years, Jersey’s funds business has grown some 66% to reach a new all-time high at the end of 2018, which is a fantastic achievement and reflective of the fact that managers are finding long-term appeal in Jersey’s regulatory standards, the global market access it can offer, its specialist expertise, and its forward-thinking approach.

“In addition, our banking sector, the backbone of our finance industry, is also going through a significant evolution to ensure it can support the aspirations of investors, and the evidence of these figures is that this is clearly working and positioning us strongly for the future.”

Mike Byrne, Chairman of the Jersey Funds Association added:

“The private equity asset class was the stellar performer and the driver of growth in our funds industry last year, with a number of big-ticket fund launches, while we’re also seeing strong performances across the alternatives spectrum. It’s a fantastic endorsement of Jersey, particularly in the lead up to Brexit, as we continue to work with managers to give them some much-needed support and certainty.”

The full set of quarterly statistics is available here.