Alternative asset classes, which now represent 89 per cent of total funds business in Jersey, continue to be the “engine room of growth” in the funds space, according to the Jersey Financial Services Commission (JFSC).
According to the latest quarterly statistics, the value of Jersey’s regulated funds business industry grew by 9 per cent in 2020, which marks a new record level.
Figures for Q4 2020, collated by the JFSC, show that the net asset value of regulated funds under administration in Jersey grew by £32.4 billion annually to stand at £378.1 billion.
Private equity and venture capital rose by 21 per cent year-on-year to £164.6 billion, while the number of registered Jersey Private Funds, which are not included in the headline figures, grew by almost 100 over the year to reach a total of 403.
JFSC says the increase reflects a period of sustained growth for Jersey’s funds industry, with the figure at the end of 2020 rising by more than two thirds (67 per cent) over the last five years.
Meanwhile, the figures also show that deposits held in Jersey banking institutions at the end of 2020 stood at £131.7 billion, down 8 per cent year-on-year, a reduction that JFSC says was heavily influenced by currency movements and global market volatility, with 56 per cent of deposits in Jersey held in foreign currencies.
The statistics found that corporate activity was also very strong in 2020, with a record level of company incorporations in Q4 2020 and the total number of live companies on the register standing at the second-highest level in ten years at the end of the year (33,626).
Commenting on the figures, Jersey Finance CEO, Joe Moynihan, says: “Against the backdrop of a really challenging year for global markets, this is a positive picture for our industry, and for our funds sector in particular which has again achieved stellar growth to reach new record levels.”
According to Moynihan, the resilience and stability Jersey has shown has clearly resonated amongst investors and managers, as they have continued to put their faith in Jersey as a specialist high quality centre for alternative funds.
He notes: “Despite currency movements impacting overall bank deposits, material deposit levels have stayed largely stable and consistent over recent years, while the positive corporate activity we saw in 2020 is a reflection of the health of the industry and our role in supporting cross-border activity.
“Overall, thanks to the collaborative efforts of Jersey’s industry, government and regulator, we are in a strong place at the start of 2021 and stand ready to deliver on our duty as a responsible IFC and support global economic recovery in the months ahead.”
