Jersey’s financial services industry reported a strong end to 2019 with its funds sector seeing an annual 8% increase in the value of assets it services to reach another record high, and the banking sector reporting the highest level of deposits in more than six years, according to the latest industry statistics.
Figures for the fourth quarter of 2019 (ending 31 December 2019), collated by the Jersey Financial Services Commission (JFSC), show that the net asset value of regulated funds under administration in Jersey grew by £25.8bn annually to stand at £345.7bn. This figure does not include assets held in Jersey Private Funds (JPFs), of which there were 306 registered at the end of the year.
The alternatives sector, including private equity, venture capital, real estate infrastructure and hedge, continued to perform particularly strongly, rising by 6% over the year, with private equity and venture capital driving growth, increasing by 19% in 2019 to stand at £136bn.
Meanwhile, the figures also show that deposits held in Jersey banking institutions at the end of 2019 stood at £142.9bn, up 16% annually and the highest level of deposits held in the jurisdiction since September 2013. 59% of deposits were held in foreign currency, with 41% held in sterling.
Corporate activity was also up year on year, with the number of company formations 5% higher in 2019 than the previous year.
Commenting on the figures, Jersey Finance CEO, Joe Moynihan, said:
“This is a really positive set of figures for 2019, and it’s really pleasing to see the efforts all of us, across industry, government and regulator, put into positioning Jersey as a centre of quality and excellence coming to fruition. What’s clear is that our forward-thinking strategy of diversifying into new markets is paying dividends, and that our focus on providing a straightforward, high-quality, robust, stable environment backed up by expertise is really resonating with investors.
“We’re not complacent though – we’re continuing to innovate to bring new products and services to market to meet investor needs, and we’re continuing to enhance our proposition for global fund managers, to enable investors to put their capital to work effectively.”
The figures come shortly after the publication of the latest Monterey Insight figures, which found that Jersey’s funds industry has grown by an average of 17% for the past three years (based on figures at end of June 2019).
Jersey’s strengths in alternative funds as well as the latest trends impacting private equity structuring will be explored at Jersey Finance’s next Funds Masterclass in London, to be held on 25 March.