Jersey funds sector hits record highs in 2020

Posted: 25/03/2021

Joe Moynihan_mar20The upward trajectory of Jersey’s funds industry continued in 2020, with the value of regulated funds business serviced in the jurisdiction growing by 9% to reach a new record level, according to the latest quarterly statistics.

Figures for the fourth quarter of 2020 (ending 31 December), collated by the Jersey Financial Services Commission, show the net asset value of regulated funds under administration in Jersey grew by £32.4bn annually to stand at £378.1bn. 

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%) over the past five years.

Alternatives business

The alternative asset classes, which now represent 89% of total funds business in Jersey, continued to be the engine room of growth, with private equity and venture capital up by 21% year-on-year to £164.6bn. 

In addition, the number of registered Jersey Private Funds, which are not included in the headline figures, grew by almost 100 over the year to reach 403.

Meanwhile, the figures show that deposits held in Jersey banking institutions at the end of 2020 stood at £131.7bn, down 8% year-on-year. This reduction was heavily influenced by currency movements and global market volatility, with 56% of deposits in Jersey held in foreign currencies.

Corporate activity

Corporate activity was also strong in 2020, with a record level of company incorporations in the fourth quarter of 2020 and the total number of live companies on the register standing at the second highest level in 10 years at the end of the year – 33,626.

Jersey Finance CEO Joe Moynihan(pictured) commented: “The resilience and stability Jersey has shown has clearly resonated among investors and managers, as they have continued to put their faith in Jersey as a specialist centre for alternative funds. 

"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."

• The full set of quarterly statistics is available here

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