Record high for funds sector as private equity soars

Wednesday 25 September 2019

The value of regulated funds serviced in Jersey hit a record high in the first half of 2019, with the net asset value growing by £22billion.

Figures released by the Jersey Financial Services Commission (JFSC) show that the net asset value of regulated funds under administration in Jersey over the first six months of the year stood at £342.1bn, a new record high and a figure that has grown by more than 70% over the past five years.

The alternative asset classes, meanwhile, recorded a combined rise of 6% over the first half of 2019 to represent 85% of Jersey’s total funds business.

Once again, private equity was pivotal in driving the growth, rising by 14%. There was also growth in real estate - up by 2.5% - while infrastructure, credit and debt funds rose collectively by 2% and hedge funds decreased by 3%.

Pictured: Jersey Finance CEO Joe Moynihan was enthusiastic about the figures.

In the banking sector, the value of deposits held in Jersey grew by 5% in the first half of the year to stand at £129.3bn, the highest figure since 2015.

The latest quarterly figures come on the heels of Jersey Finance's announcement that the number of registered Jersey Private Funds (JPF) had grown by 25% to 257, with assets under management of £43bn – more than double the value at the end of 2018 (£19.4bn).

“It’s particularly pleasing that we have succeeded in maintaining our momentum from last year into 2019 with a really strong set of figures," Joe Moynihan, Jersey Finance's CEO, commented.

"At our conference in London earlier this month, we set out clearly why Jersey continues to prove an attractive option for alternative fund structuring and the fact that we have reached new heights midway through the year is compelling evidence of that. The stability Jersey can provide, together with its expertise, cutting-edge regulatory framework and global market access is clearly resonating with managers. 

“The fact that our banking sector remains so resilient is hugely positive too. It is a key component of our financial services industry and is continuing to evolve to meet the increasingly sophisticated, global and digital demands of investors now and in the future.”

“These figures demonstrate that the private equity sector sees real benefits in using Jersey and that the Jersey Private Fund (JPF) is fast becoming the go-to structure for investors," Tim Morgan, Jersey Funds Association Chair, added. "Managers are continually looking for reliable, cost effective solutions to support their investors’ needs and Jersey’s funds offering provides the perfect solution for the long-term.”