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Strong Funds Sector Growth For Jersey In H1

by Jason Gorringe, Lowtax.net, London
28 August, 2015

The number of Jersey funds marketing into Europe through national private placement regimes under the EU Alternative Investment Fund Managers Directive has broken the 200 barrier, Jersey Finance has announced.

By June, a total of 205 Jersey funds had been marketed into the EU through NPPRs, representing an increase of 10 percent on December 2014 levels. 84 fund managers have now received private placement authorization, up 40 percent over the previous six months.

Meanwhile, further statistics collated by the funds sector regulator show that the net asset value of all regulated funds under administration in Jersey grew by around nine percent year-on-year as at June 2015 to stand at GBP218bn (USD335.3bn), and that the fund formation rate remains strong, with on average one fund being established in Jersey every week during the first half of the year.

In particular, the alternative asset classes grew 15 percent annually. Hedge fund business grew by 31 percent year-on-year, real estate funds business was up by 16 percent annually, and private equity maintained a steady yearly increase of two percent.

Whilst Jersey's current marketing route into Europe via national private placement regimes is likely to remain in place until at least 2018, the European Securities and Markets Authority (ESMA) announced in July that it was recommending Jersey should be included in the first wave of 'third non-EU countries' whose managers could seek authorization for a passport to market their alternative investment funds to professional investors throughout EU member states.

Geoff Cook, Chief Executive, Jersey Finance, said: "Whilst of course the endorsement from ESMA in July was a significant development for Jersey's funds community, it's extremely pleasing that at the same time managers and promoters are continuing to find appeal in the 'business as usual' private placement route. With private placement expected to remain in place until at least 2018 and the potential to activate the AIFMD passport in Jersey in due course, the evidence all points to genuine confidence in Jersey for the management, domiciliation and servicing of funds across a range of strategies and target markets."

Ben Robins, Chairman of the Jersey Funds Association, said: "These figures underline Jersey's role as a specialist center for alternative funds, with the emphasis Jersey is placing on high quality rather than high volume business paying real dividends. The value of funds under administration is growing whilst fund formation, by both established and new promoters, is looking strong again this year, and we fully expect this trend to continue, particularly with the growth we are seeing in other alternative asset classes including debt, credit and infrastructure funds as well as hedge, private equity and real estate."

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