Encouraging returns for the Jersey Fund Industry
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$301.3bn at the end of June 2016, up 2.0% from 2015. The number of serviced schemes increased to 1,162 and the total number of sub-funds recorded also showed an increase at 1,662 (compared to 1,120 and 1,559 respectively in 2015).
For fund administration services across both domiciled and non-domiciled funds, positions have been reversed from last year with Aztec Group this year taking over first place with US$57.9bn in assets, followed in second place by State Street with US$31.5bn and Saltgate (US$31.2bn) maintaining their third position.
Edward Moore, Chief Executive Officer of the Aztec Group said: “We are delighted with the news today that the Aztec Group has risen to the number one spot for the provision of fund administration services in Jersey. Aztec Group has been pushing the boundaries in fund and corporate services since 2001 with dedicated client teams, leading edge technology and a focus on alternative strategy asset classes. This formula, backed up by a strong focus on developing long term partnerships with our clients, has enabled us to continue to win new business against a challenging political and regulatory background. Our continued organic growth is testament to the hard work, passion and dedication of our staff, all of whom have played an integral part in our ongoing success.”
In 2016 for both domiciled and non-domiciled funds, BNP Paribas maintain their first position as the largest custodian with US$26.1bn in assets. JP Morgan with US$11.6bn keeps its second position and Capita Trust Company gain one rank to third position with US$8.6bn (from being in fourth place last year).
Among legal advisers, Mourant Ozannes maintained its lead, advising on 836 funds, followed in second place by Carey Olsen with 486 funds and in third place Ogier with 327 funds.
Daniel Birtwistle, Funds Partner at Mourant Ozannes, said: "Monterey Insight provides a truly independent assessment of the advisers to Jersey's regulated fund industry. This year's report shows clear evidence of growth despite an unprecedented period of regulatory change, proving that Jersey's industry remains healthy and capable of adapting quickly to meet regulatory requirements. The data shows that our funds practice continues to be Jersey's leading law firm for investment fund legal advice, a position that we are proud to have now held for 17 consecutive years."
PricewaterhouseCoopers also kept its lead position being the largest auditor with 492 funds ahead of KPMG and EY, respectively with 279 and 176 funds.
Mike Byrne, Partner and Asset Management Leader at PwC Channel Islands commented: “We’re delighted to have maintained our leading position as the largest auditor of Jersey serviced funds. Jersey has a thriving asset management industry and is recognised as a global centre of excellence for private equity, providing appropriate structures, a robust regulatory environment and first class professional services. PwC’s top ranking demonstrates our commitment to our clients and to the funds industry on the Island, as we continue to provide top quality advice to local and global organisations in all sectors of the financial services industry and beyond.”
Among fund management companies, for the first time ETF Securities take the top spot of Jersey domiciled schemes with US$15.9bn of assets followed by BlackRock Financial Management (US$14.0bn) and CVC Capital Partners (US$13.5bn).
Most popular product of Jersey domiciled funds are private equity/venture capital funds standing at US$83.7bn (compared to US$76.0bn in 2015) and accounting for 39.5% of assets domiciled in Jersey. They are followed by property real estate funds with US$52.2bn.
“Very positive figures were revealed in the new 2016 report showcasing the strength of the Jersey Fund Industry: a growth of assets by 2%, an increase of groups by 3.8% and sub-funds by 6.6%.
Jersey managed to attract 38 new promoters representing US$5.2bn of new business. In excess of 220 sub-funds were launched over this period representing US$18.5bn. Adapting the ever increasing regulation, such as the AIFMD, Jersey demonstrates again evidence of its attractiveness as a fund investment centre.” commented Karine Pacary, Managing Director of Monterey Insight
As at 30th June 2016, leading service providers for all funds serviced in Jersey (i.e. including non-domiciled funds under administration or custody in Jersey - very private funds have been excluded from the analysis) were as follows:
Source: Monterey Insight, Jersey Fund Report 2016.