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Jersey’s fund industry experienced a 17% growth last year, with fund assets serviced in the island rising to $481.2bn (£372.69bn) at the end of June 2019, according to an independent fund research company.
The 25th annual Monterey Jersey Fund Report shows that the number of serviced schemes increased to 1,336 - up 4.5% - while the total number of sub-funds recorded were up by 5% - reaching 1,807.
Private equity/venture capital and infrastructure funds remained the most popular fund types, rising to $320.1bn with a total of 826 funds and sub-funds.
A similar trend was seen among domiciled funds, where private equity products reached $194.2bn with a total of 381 funds and sub-funds.
For Jersey-domiciled funds and for all types of products, 125 new schemes were launched during the year, totalling for $16.0bn.
“The Jersey Fund Industry maintains its momentum for three consecutive years enjoying an impressive 17% average growth,” Karine Pacary, Managing Director of Monterey Insight, commented.
“As expected, Private Equity products including infrastructure are the main drivers of this asset inflow. They remain a crucial element to the attractiveness of the island’s fund business and the consolidation of its fund industry.”
The report also detailed the market shares of all service providers in the local industry.
Aztec Group maintained its lead among transfer agents and of serviced funds for the fourth year in a row, with a total net asset of $169.1bn, ahead of Intertrust with $26.6bn and of Computershare Investor Services with $22.8bn.
Pictured: Edward Moore, Chief Executive Officer and founder of the Aztec Group.
“This is an incredible achievement, and we’re immensely proud of our teams both in Jersey and the wider Group for the part they continue to play in helping us consolidate our position as market-leader,” Edward Moore, Chief Executive Officer and founder of the Aztec Group, said.
“It is a true testament to the professionalism of our employees and their unwavering commitment and dedication to delivering the best possible service to our clients.”
BNP Paribas Securities Services topped the custody ranking of serviced funds with $22.2bn of assets, followed by JP Morgan with $11.9bn and Sanne Trustee Services with $11.7bn.
The top three legal advisers remained unchanged: Mourant, Carey Olsen and Ogier advised on 733, 714 and 443 funds respectively.
"Our dominant position as Jersey's leading law firm for investment funds is a reflection of our extensive experience, in-depth technical focus and deep resources in the sector, built through many years of sustained growth and trusted relationships with our clients,” Felicia de Laat, Mourant Head of Investment Funds, commented.
Pictured: Felicia de Laat, Mourant Head of Investment Funds.
Among auditors, PwC kept its leading position with 433 funds ahead of KPMG with 361 funds, while Deloitte climbed to third position with 190 funds.
Deloitte is, however, leading the way for assets with $121.3bn, followed by PwC and KPMG with $96.6bn and $78.5bn respectively.
“It is extremely pleasing that we have retained our leading position again as the largest auditor of Jersey serviced funds,” Mike Byrne, Partner and Asset Management Leader at PwC Channel Islands, said.
“In this vastly changing environment, Jersey continues to have a thriving investment management industry and is recognised as a global centre of excellence for private equity, providing appropriate structures, a robust regulatory environment and first-class professional services.”
SoftBank was in first position among fund management companies of both domiciled and non-domiciled schemes with assets totalling $70.5bn, followed by Ardian with $47.7bn and CVC Capital Partners with $45.9bn.
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