Funds industry reaches new highs

Wednesday 29 September 2021

The total value of fund assets administered in Jersey grew by £26.3bn, reaching a new record level of £436.3bn at the end of June, with private equity continuing to drive growth.

Figures for the second quarter of 2021, collated by the Jersey Financial Services Commission (JFSC) and published by Jersey Finance, show that the value of total funds business booked in Jersey grew by 15% over the first half of 2021.

In particular, the figures show that performance in the funds sector has been driven by private equity, which has grown by 24% over the period to stand at £203.6bn. 

Combined, the alternative asset classes, including private equity, venture capital, hedge, real estate, infrastructure and debt funds, now account for 89% of all funds business in Jersey.

In addition, the number of registered Jersey Private Funds (JPF), a structure designed for small groups of sophisticated and professional investors, grew by more than 50 over the six-month period to reach 456 (up 13%). 

Meanwhile, the figures also show that deposits held in Jersey banking institutions stood at £127.2bn at the end of June, down slightly (8%) on December 2020. This was influenced by currency movements and global market volatility, with more than half (53%) of deposits in Jersey being held in foreign currencies.

Corporate activity, meanwhile, remained strong over the first half of the year, with a high number of company incorporations in the latest quarter (722) and the total number of live companies on the register standing at the highest level for more than a decade (33,948).

Tim Morgan, Chair of the Jersey Funds Association, said the “really positive figures” underlined Jersey’s reputation as a specialist funds centre. 

Pictured: Amy Bryant, Jersey Finance's Deputy CEO.

Deputy CEO of Jersey Finance Amy Bryant said they reinforced “some important points”.

“First, the fact that corporate activity has remained strong and our banking sector has been resilient despite significant currency movements in an uncertain environment, underlines the robust nature of our industry,” she said.

“In addition, the fact that our investment funds sector has shown such impressive and sustained growth – in particular in the private equity and alternatives space – highlights our strengths as a centre focused on putting significant and high quality institutional and private capital to work around the world. Investors and managers clearly recognise Jersey as an IFC that offers specialist alternative fund expertise. That is important not just for Jersey but for global economies as we all look to rebuild in a sustainable way.”