Alternatives on the up in Jersey
28 August 2015 Jersey
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Jersey has seen an increase in alternative funds marketed in to Europe through its national private placement (NPP) regime, with the number exceeding 200 for the first time.
The increase has been partially attributed to a generally strong performance in the island’s alternatives sector. Net assets under administration in this sector have increased by 15 percent in comparison to the same time last year.
The latest figures from the Jersey Financial Services Commission (JFSC), from June 2015, show that 205 funds are now being marketed in to Europe through NPP schemes, 10 percent more than the figure from six months ago.
Fund managers that have received private placement authorisation increased by 40 percent to reach 84.
The net asset value of all regulated funds under administration in Jersey has grown by about 9 percent compared to the same time last year, reaching £218 billion. While the alternative asset class saw an increase of 15 percent, hedge funds have grown by 31 percent and real estate funds business was up by 16 percent. Private equity also increased, but by a more modest 2 percent.
In addition, the fund formation rate is strong, according to the JFSC, with an average of one fund per week established during the first half of 2015.
The release of these results comes after ESMA recommended Jersey for the Alternative Investment Fund Managers Directive (AIFMD) marketing passport, which would allow Jersey’s alternative investment fund to market to investors in EU member states.
Geoff Cook, CEO of Jersey Finance, said: “While 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, domiciling and servicing of funds across a range of strategies and target markets.”
Ben Robins, chairman of the Jersey Funds Association, added: “These figures underline Jersey’s role as a specialist centre for alternative funds.”
He added: “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.”
The increase has been partially attributed to a generally strong performance in the island’s alternatives sector. Net assets under administration in this sector have increased by 15 percent in comparison to the same time last year.
The latest figures from the Jersey Financial Services Commission (JFSC), from June 2015, show that 205 funds are now being marketed in to Europe through NPP schemes, 10 percent more than the figure from six months ago.
Fund managers that have received private placement authorisation increased by 40 percent to reach 84.
The net asset value of all regulated funds under administration in Jersey has grown by about 9 percent compared to the same time last year, reaching £218 billion. While the alternative asset class saw an increase of 15 percent, hedge funds have grown by 31 percent and real estate funds business was up by 16 percent. Private equity also increased, but by a more modest 2 percent.
In addition, the fund formation rate is strong, according to the JFSC, with an average of one fund per week established during the first half of 2015.
The release of these results comes after ESMA recommended Jersey for the Alternative Investment Fund Managers Directive (AIFMD) marketing passport, which would allow Jersey’s alternative investment fund to market to investors in EU member states.
Geoff Cook, CEO of Jersey Finance, said: “While 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, domiciling and servicing of funds across a range of strategies and target markets.”
Ben Robins, chairman of the Jersey Funds Association, added: “These figures underline Jersey’s role as a specialist centre for alternative funds.”
He added: “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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