23% increase for Jersey's funds industry

Monday 14 February 2022

The 27th annual Monterey Jersey Fund Report shows fund assets serviced in Jersey rose from US$493.0bn in 2020, to US$605.4bn at the end of June 2021, an increase of 22.8%.

It also showed that the number of serviced schemes increased to 1,672, up 11.8% and the total number of sub-funds recorded were also up to 2,192 which represents a 10.7% increase (from 1,495 and 1,981 respectively).

Private equity/venture capital funds, still the most popular products, remain the key drivers to the Jersey fund market industry and account for US$419.1bn of assets for domiciled and non-domiciled funds exceeding the thousand mark for the first time with over 1,070 funds and sub-funds. Property/Real Estate Funds rank second with US$75.6bn and a total of 335 funds.

Among fund management companies of both domiciled and non-domiciled schemes, SoftBank maintain their first position with assets totalling US$100.6bn.

For fund administration services across both domiciled and non-domiciled funds, Aztec Group with US$220.1bn in assets, maintain the largest market share for fund assets under administration for the sixth consecutive year. 

Among transfer agents, Aztec Group also maintain their lead, with total net assets of US$213.9bn.

Edward Moore, Chief Executive Officer and founder of the Aztec Group, commented: “Being named Jersey’s leading fund administrator and transfer agent is a testament to the hard work and commitment of all of our teams in Jersey and across the wider Group.

They are dedicated to delivering the best possible service to our clients, and we’re proud to see that dedication reflected in our market-leading position.”

BNP Paribas Securities Services, once again secure top position as the largest custodian by assets with US$19.0bn.

Paul Duquemin, Head of Client Development at BNP Paribas Securities Services, commented: “We are proud to once again be confirmed as the leading Custodian of funds serviced in Jersey, which reflects our continued growth, achieved in partnership with our clients and in turn driven by outstanding client service.  We invest heavily in our people and our technology in order to further develop our integrated service offer and we believe there are strong prospects for continued growth in Jersey.”

Among legal firms of serviced and distributed funds, Mourant took first position and secured the overall top spot in the rankings, advising on 894 funds.

Felicia de Laat, Jersey Funds Practice Leader at Mourant said: "We are proud of achieving the top position in total market share ranking by both funds and assets as well as the biggest increase in serviced funds and highest growth rate in terms of new business. This is testimony to the continued confidence our clients have in the quality of our legal advice and consistency and continuity of service which we achieve through our team of dedicated and excellent funds lawyers".

Carey Olsen were named leading legal adviser to Jersey-domiciled funds for a third year. It advised on 484 in June 2021 - up 77% compared to the same point in 2016.

Robert Milner, a Partner in the firm's investment funds team, said the growth was a "positive reflection of our team's commitment to client service, the calibre and strength in depth of our investment funds practice."

Among auditors of serviced funds, PwC are once again the largest auditor with 520 funds.

Mike Byrne (pictured top), Partner and Asset Management Leader at PwC Channel Islands, said: “I am delighted that we have retained our market-leading position yet again as the largest auditor of Jersey serviced funds. Despite the economic challenges of COVID-19, the Island has demonstrated its resilience, strength and adaptability and continues to be a well-recognised, global centre of excellence for investment funds, providing flexible structures, a robust regulatory environment and first-class professional services. Here at PwC, we recognise that our people are our biggest strength and this accolade is a true testament to both their capabilities and their commitment across the Channel Islands to our clients and to the local funds industry."