Funds administered in Jersey rise by 15% to record high level

Monday 22 May 2017

The values of funds administered in Jersey rose by 15% in 2016, reaching a record high £260bn, figures published by Jersey Finance show.

The growth was driven by the alternative asset classes, which also increased by 15% to £189.2bn, which represents almost three quarters (73%) of Jersey’s total funds activity.

Private equity fund values rose by almost a third year-on-year (30%) to stand at £59.7bn, whilst the combined total of ‘specialist’ funds, including infrastructure, credit and debt funds, also experienced a significant jump with a 48% increase. Real estate fund values rose by 7% during the course of the year, but hedge fund values remained steady, ending the year at £52.4bn.

Commenting on the figures, Geoff Cook, CEO of Jersey Finance, said: “These are clearly very encouraging figures for 2016, and support the view that, in an uncertain market, Jersey is an attractive, stable and effective platform for alternative fund managers. We are a well-governed, risk-averse, outward-looking jurisdiction with ongoing European market access and strong links to the UK, and all that is proving an attractive proposition for managers and investors looking for stability and certainty.” 

Mike Byrne, Chairman of the Jersey Funds Association added: “It’s a powerful global endorsement of Jersey that some of the highest value funds in the world are deciding to launch in Jersey and a number of new promoters are now using Jersey for the first time. Moreover, current trends indicate that asset managers are set to substantially increase their allocation in alternatives over the coming months, which puts our buoyant funds industry in a very strong place indeed. 

“We’re not complacent though, which is why we’re continuing to focus on innovation within our funds regime. The launch in March of our new fast-track Jersey Private Fund is an example of that, and we are already seeing strong interest in that as a vehicle for institutional and high net worth investors to bring highly targeted and timely funds to market.”