New findings from Monterey Insight, the independent fund research company, reveal the market shares of all service providers in Jersey’s fund industry.
Fund assets serviced in Jersey reached US$296.2bn at the end of June 2015, down 3.2% from 2014. However, the number of serviced schemes increased to 1,120 and the total number of sub funds recorded also showed an increase at 1,559 (compared to 1,101 and 1,535 respectively in 2014).
For fund administration services across both domiciled and non-domiciled funds, State Street remained at the top of the table with US$50.2bn in assets, followed in second place by Aztec Group with US$44.3bn and Saltgate (US$33.4bn) maintaining their third position.
Again, for both domiciled and non-domiciled funds, BNP Paribas maintain their first position as the largest custodian with US$30.3bn in assets. JP Morgan (US$13.7bn) climbs to second position (from being in 4th place last year), and SG Hambros Trust are ranked third.
Among legal advisers, Mourant Ozannes remain in top spot, advising on 817 funds, followed in second place by Carey Olsen with 479 funds and Ogier with 328 funds.
PricewaterhouseCoopers is the largest auditor with 472 funds ahead of KPMG and EY.
Among fund management companies, for the first time, BlackRock Financial Management take the lead of Jersey domiciled schemes with US$16.1bn of assets, followed by CVC Capital Partners (US$15.6bn) and ETF Securities (US$13.6bn)
In 2015 private equity/venture capital funds stood at US$76.0bn (compared to US$84.3bn in 2014), accounting for 41.8% of assets domiciled in Jersey. They are followed by property real estate funds with US$50.7bn.
“We are pleased to reveal the 2015 report highlighting the shape of the Jersey Fund Industry. Jersey had a rather stable year in terms of total growth of assets, and actually showed a slight increase in the number of newly launched funds and new business coming to the Island: over 115 new sub-funds (domiciled and non-domiciled) were launched during the year totalling $17.5bn (55 of which were Jersey domiciled new sub-funds). Additionally, in excess of 30 new promoters have chosen Jersey to establish their funds. Jersey continues to attract new investment and is regarded as a specialist in private equity funds, but is also competitive in other areas such as alternative funds and real estate funds. Whilst some of the asset classes showed a decrease, there were exceptions for alternative investment and some traditional funds (such as equities and bonds).” comments Karine Pacary, Managing Director of Monterey Insight.
Industry comments:
Daniel Birtwistle, funds partner at Mourant Ozannes, commented: “Monterey Insight, being truly independent, is a benchmark survey. The survey shows that the regulated funds industry in Jersey continues to remain healthy during a period of unprecedented regulatory change, which is fantastic news and which also sits alongside sustained and significant growth in relation to private structures. Mourant Ozannes continues to invest into its market leading team, including the recruitment of 7 lawyers in 2015 as well as the hire of Tim Morgan as a partner into the team. The data indicates that our market-leading funds practice is considered the "go to" team in Jersey with more fund managers turning to Mourant Ozannes for legal advice than any other law firm.”
Mike Byrne, partner and asset management leader at PwC CI, said “We’re delighted to have maintained our position as the leading auditor of Jersey serviced funds. Jersey has a thriving asset management industry and continues to be recognised as Europe's premier centre for private equity, providing appropriate structures, a robust regulatory environment and first-class professional services. PwC’s top ranking not only demonstrates our commitment to our clients and the confidence they have in us, but also highlights our support of the funds industry in Jersey”.