– Total fund assets value grew against a backdrop of challenging market conditions
– Healthy rate of new fund launches helped drive growth in number of funds
Figures recently published by Monterey Insight show that the value of Assets Under Administration (AUA) in Jersey’s funds industry grew by 1.4% year-on-year to stand at US$593.5bn as at June 2023, highlighting the appeal of Jersey’s stable platform for alternatives against a backdrop of challenging market conditions.
Published this week (29 January) in the 29th Monterey Jersey Fund Report, the figures paint a picture of sustained growth not only in AUA but also in terms of fund vehicles, with the number of serviced schemes increasing by 16% year-on-year to 1,883 and the total number of sub-funds recorded also up to 2,390, representing a 12% increase.
Significantly during the period, over 210 newly launched and newly serviced sub-funds were accounted for, reaching US$39.4bn for new products of domiciled and non-domiciled funds.
In its analysis of asset classes, the report confirmed that growth continued to be driven by private equity and venture capital fund activity, accounting for a total of US$424bn of assets, followed by real estate funds with US$68bn. Private debt funds saw the highest growth in net assets, with a 21% increase compared to 2022.
The figures also reflect the increasingly diverse nature of Jersey as a global funds hub, with the industry supporting fund assets originating from not only the UK ($117.5bn) but also Luxembourg ($76.1bn), Japan ($60.3bn), the US ($52bn) and Sweden ($32.5bn).
Commenting on the report’s findings, Jersey Finance’s Head of Funds Elliot Refson said:
“The Monterey report provides a useful insight into the performance and make-up of Jersey’s funds sector. The key takeaway this year is that, against an inflationary and high interest rate environment that has significantly hampered global fundraising and deal flow, Jersey has nevertheless continued to remain attractive.
“We’ve seen growth in the value of assets serviced by firms here, but significantly we’ve also seen the industry help bring new funds to market at a healthy rate, in difficult conditions. That’s a strong reflection of the stable and certain platform Jersey provides for private equity, venture capital, real assets and other alternative funds. These figures should send out a clear message of confidence as the alternatives sector looks to ramp up activity in 2024.”
You can view the full report on the Monterey website.