Jersey's finance industry reveals value of funds at record high

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Latest figures on the size of the finance industry in Jersey show banking deposits are rising and the value of the funds industry is at a record high, Jersey Finance has announced.

The net asset value of regulated funds under administration grew by £15bn during the 2Q2018 to stand at £296bn at 30 June 2018, the highest recorded figure to date. Banking deposits are also higher at £121.2bn, the most since March 2016 and £5.7bn higher than in March 2018.

The statistics, collated by the Jersey Financial Services Commission (JFSC) and published by Jersey Finance, for the period ending 30 June 2018, also show that all the alternative asset classes, which are central to the success of the funds industry, have recorded an increase since the start of the year.

Private equity fund values rose by nearly £4bn to £86.5bn and real estate increased by £2bn to £39.5bn. Hedge funds values increased by nearly £4bn to £54bn and the combined total of infrastructure, credit and debt funds was nearly £10bn higher at £59.6bn.

These latest figures on funds business complement the data issued by the JFSC in the summer, which showed that the number of Jersey alternative investment funds being marketed into the EU through national private placement regimes (NPPRs) continued to increase (up 5% since December 2017) and the number of Jersey registered managers opting to market into the EU through NPPRs under the Alternative Investment Fund Managers Directive (AIFMD) also increased (by 8%).

Companies on the Commission register have also climbed since December 2017 by more than 500 to stand at 32,618 active firms.

Industry resilience
Commenting on the trends, Jersey Finance CEO, Geoff Cook said: “These latest figures offer clear evidence of the industry’s resilience during challenging times and demonstrate its ability to grow and thrive. It is also worth noting these figures do not include Jersey Private Funds, a fast track regime introduced in 2017, and as at 24 September 2018, the JFSC had granted authorization to 167 JPFs. This figure represents an increase of 280% since August 2017.

“It is certainly a tribute to Jersey’s stability, high regulatory standards and the global appeal of its range of investment structures. These combined strengths, delivered by a skilled workforce, ensure Jersey remains an attractive jurisdiction across a broad range of sectors.

“When reviewing the figures during the first six months of the year, there are a host of positives to acknowledge and, with finance employment figures approaching the highest ever level coupled with more than 50% of business flows now coming from emerging markets, the industry is on a strong footing.”

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Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.

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