Accelerated digital adoption, upskilling and product innovation will be key themes for the funds industry in Jersey over the coming years, according to the findings of the latest annual survey of Jersey Funds Association (JFA) members.
The survey, exploring opportunities and issues for Jersey’s funds industry and the sentiment of practitioners, found that digital transformation will continue to be pivotal to funds businesses in Jersey, shaping approaches to regulation, tax and governance in the coming years.
Highlighting the impact of Covid-19 in particular, 92% of respondents said the pandemic had changed the way their business uses technology to some degree, with 63% saying it had significantly accelerated digital adoption within their business.
While the vast majority (62%) believed current skills training was sufficient, around 37% suggested greater support was needed to support a more digitised future.
Regulatory issues
On the regulatory front, the survey indicated that Jersey’s response to economic substance rules had been broadly welcomed by the industry. Some 42% of respondents claimed substance rules had had a positive impact on Jersey’s competitiveness, while 70% thought Jersey was striking the right balance between ease of doing business and regulation.
The survey also highlighted that Brexit is still seen as, on balance, a neutral or positive factor for Jersey’s funds industry, with almost a third (31%) of respondents anticipating an increase in business as a result of Brexit.
It painted a picture of an industry that is looking to grow and diversify, with 69% of respondents saying they were confident that their business would expand over the next five years, driven largely by organic growth (69%).
Funds focus
In terms of strategic priorities in the short and medium term, the focus remains on private equity, real estate, venture capital and debt funds.
Geographically, Jersey’s funds industry is increasingly global in nature, with the US West and East coasts and Middle East markets seen as increasingly important, complementing the existing strong focus on the UK.
JFA Chair Tim Morgan (pictured) said: “Despite the challenges of the past year, Jersey’s funds industry has continued to see hugely impressive growth, with the latest figures for funds business registered in Jersey rising to a new record of £378bn in 2020.
"The ecosystem Jersey provides for alternatives is clearly resonating with investors, and the outlook for the coming years remains positive.
“Nevertheless, what this survey shows is that Jersey’s funds industry is confident and ambitious, and continues to look to push boundaries, innovate and improve.
"The focus on digital adoption and upskilling comes across clearly this year, with the industry keen to position itself as an authority in the alternatives space, while there are also real ambitions to diversify and grow, including in the ESG space.”