Funds under administration top £450bn after 19% increase

Tuesday 19 April 2022

The total net asset value of regulated funds administered in Jersey rose by almost a fifth over 2021 reaching a new record level of £450.2bn, whilst corporate activity and bank deposits also showed year-on-year growth.

According to the latest quarterly figures collated by the Jersey Financial Services Commission (JFSC) for the period ending 31 December 2021, the value of regulated funds under administration increased by 19%, with an additional £72.1bn between 2020 and 2021.

This growth was driven by the alternative asset classes, including private equity, real estate, hedge, credit and infrastructure, which now represent 89% of total funds business, with private equity and venture capital in particular increasing by 27% over the year.

Meanwhile, the total value of deposits held in Jersey banking institutions increased marginally by £1.9bn (1%) to £133.5bn over 2021, with 56% held in foreign currencies.

Corporate activity also remained strong over 2021, with the number of live companies on the register reaching its highest level with 34,523.

Pictured: Jersey Finance CEO, Joe Moynihan.

Commenting on the figures, Jersey Finance CEO, Joe Moynihan, said: “Overall, these are positive figures for our industry in what continues to be a challenging global environment for cross-border financial services. The message is clear – investors and institutions value the certainty, stability and expertise Jersey offers in an uncertain landscape.

“The funds industry in particular maintained its strong upward trajectory, with total fund assets in Jersey now topping £450bn. Meanwhile our banking sector has remained stable despite ongoing currency fluctuations, and our corporate sector has been particularly active, reflecting a buoyant picture across the industry. These figures should give us optimism for the year ahead as we continue to innovate and deliver high quality services to global investors.”

Tim Morgan, Chair, Jersey Funds Association, added: “Our focus as a funds industry is on creating the very best ecosystem for investors and managers, to facilitate the global distribution of capital securely and efficiently. That these figures show a near 75% increase in funds business over the past five years is testament to the fact that investors right across the alternatives spectrum recognise Jersey as a top-tier jurisdiction, offering expertise, innovative structuring options and a no-nonsense regulatory environment that is entirely geared up to supporting their endeavours.”