Jersey Funds Sector Boosted By Alternative Investment Surge
by Jason Gorringe, Lowtax.net, London
28 March, 2018
Jersey saw the value of locally administered funds rise to a record high of almost GBP300bn (USD423bn) at the end of 2017, driven primarily by a rise in private equity business.
Figures collated by the Jersey Financial Services Commission and published by Jersey Finance, the island's financial services promotion agency, show that in the final quarter of 2017, the total net asset value of regulated funds being serviced through Jersey rose by 10 percent over the quarter and by 12 percent year-on-year to stand at GBP291bn (as at December 31, 2017), the highest value ever recorded.
This growth was driven by alternative asset classes, which increased annually by 13 percent to represent more than three quarters (77 percent) of Jersey's total funds' activity. Within the alternative asset classes, private equity fund values performed particularly strongly, rising by almost a third year-on-year (30 percent) to stand at GBP82.7bn. Hedge fund values increased by six percent to GBP50.7bn, real estate rose two percent to GBP37.5bn, and the combined total of infrastructure, credit, and debt funds rose by seven percent to stand at GBP50.6bn.
Commenting on the figures, Mike Byrne, Chairman of the Jersey Funds Association, said: "Over the past 12 months, Jersey has continued to work closely with the alternative fund management community, and these figures are a reflection of that hard work. Some of the largest private equity funds brought to market last year were structured through Jersey and we continue to see managers selecting Jersey to access both EU capital through private placement and the key UK investor market."
He continued: "... more than 100 Jersey Private Fund structures have also been established in less than a year since launch and their value is not captured in these regulated fund figures, so it's clear there is real momentum in Jersey's funds industry at the moment. With asset managers expected to substantially increase their allocation in alternatives over the coming months, we are extremely confident in the future of the industry."
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