New Record High for Jersey’s Funds Sector as Jurisdiction Sets Sights on US

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 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 (US$27.9bn) over the first six months of the year to stand at £342.1bn (US$432.7bn), 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%. 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%.

The figures have been published ahead of the official opening of Jersey Finance’s office in New York next month, as the jurisdiction looks to enhance its visibility in the US and promote its proposition as a gateway to Europe for US alternative fund managers.

Commenting on the figures, Jersey Finance CEO, Joe Moynihan, said: “That we have succeeded in maintaining our momentum from last year into 2019 with a really strong set of figures is really pleasing, particularly ahead of our New York office opening next month. The fact that we have reached new heights midway through the year is compelling evidence of the ongoing appeal of Jersey amongst alternative fund managers who are looking for stability, expertise, a cutting-edge regulatory framework and global market access. All of that should resonate clearly with US managers with European ambitions.”

Philip Pirecki, Head of Jersey Finance’s New York office, added: “Jersey acts as a fantastic gateway to Europe, with more than 170 managers marketing more than 300 funds into the EU through Jersey’s robust, flexible and cost-effective private placement regime already. With Brexit and a review of AIFMD II on the horizon, Jersey is ready to work with US fund managers seeking a reliable, straightforward platform to support their European capital raising strategies.”

Monterey Insight figures show that US promoters’ assets under administration in Jersey have increased by 148% over the past five years.