Hedge fund assets flow into Jersey at record pace

Influx of assets originating from the US and Japan boost Jersey's value of regulated funds to record high.

By Jonathan Watkins

The value of regulated funds serviced in Jersey has broken through the £300 billion barrier for the first time with an influx of assets originating from the US.

Figures for the third quarter of 2018 from the Jersey Financial Services Commission (JFSC) show that the net asset value of regulated funds under administration in Jersey grew 14% year-on-year to stand at £301.7 billion, the highest recorded figure to date.

According to the Monterey Insight Jersey Fund Report 2018, the value of Jersey-domiciled fund assets originating from the US grew by almost 150% and the number of Jersey funds with US promoters increased 165%.

Jersey-domiciled fund assets with Japanese promoters have increased five-fold over the same time span.

“The clear evidence is that Jersey is providing an attractive proposition for fund promoters, with all alternative asset classes showing really strong growth over the past twelve months, particularly the private equity sector,” said Geoff Cook, CEO of Jersey Finance.

“Meanwhile, the Monterey report confirms that Jersey is gaining real traction as a global hub for cross-border investment, with fund promoters from the US, Asia and Africa viewing Jersey as an expert jurisdiction for alternative fund servicing. The UK remains a key focus for Jersey, and through Brexit we fully expect to see more UK managers looking to Jersey for specialist support. At the same time, though, a growing number of managers beyond Europe are exploring how Jersey’s robust, innovative regulatory framework and specialist alternatives expertise can support them with their global fund distribution, and that’s a fantastic endorsement of Jersey as a jurisdiction.”

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