Figures published recently by Monterey Insight on the size and state of Jersey’s funds industry paint a picture of a sophisticated, evolving and increasingly global alternative funds hub, according to Jersey Finance’s Head of Funds.
The 30th annual Monterey Jersey Fund Report 2024 was published last month (27th January), showing that – significantly in a high-interest rate environment – the value of Assets Under Administration (AUA) in Jersey’s funds industry grew by 6.1% year on year (as at June 2024) to stand at an all-time high of US$630bn.
AUA value of Jersey’s funds industry grew by 6.1% year on year (as at June 2024) to stand at an all-time high of US$630bn
The number of fund vehicles established in Jersey also rose, with the total number of funds and sub-funds serviced in Jersey up to 2,450 – the most ever recorded in Monterey’s Jersey reports, and representing a 2.5% annual rise.
The report also reflects an increasingly global make-up of Jersey’s funds sector, with growing links between Jersey and the US and Scandinavia, as well as the core UK market.
The number of funds serviced in Jersey for fund managers and promoters in the US has grown by 56% over the past five years, whilst in Europe that figure is 106% for Sweden and 44% for Switzerland. Links with the UK have shown steady growth, with fund numbers up 40% over five years.
In its analysis of asset classes, the report confirmed that growth continued to be driven by private equity and venture capital fund activity, up 9% year-on-year to account for a total of US$464.1bn of assets, followed by real estate funds with US$67bn. Of the 145 newly launched and newly serviced sub-funds recorded in Jersey between June 2023 and June 2024, 62% were private equity or venture capital products.
Private Debt continues to grow too, with the number of private debt fund vehicles established in Jersey having more than tripled over the past five years.
Commenting on the report’s findings, Jersey Finance’s Head of Funds Elliot Refson (pictured) said: “The latest Monterey report reflects in many ways what we are seeing on the ground – on the one hand, a core proposition that is tried and tested, with strong links to the UK asset management community and sustained success in attracting new high quality private equity and venture capital business. That is balanced against a clear strategy to diversify, adapt and evolve, including through maturing links with managers in the US, where we have seen consistent growth over the past five years, and galvanized ties with core European asset hubs Sweden and Switzerland.
“Overall, it makes for a sophisticated, global and evolving funds landscape in Jersey – and we are focused on maintaining that evolution this year through our significant efforts to bolster relationships with strategically important overseas markets and to strengthen our proposition in the tokenization and digital assets space.”
