Booming Year 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.
The 23rd annual Monterey Jersey Fund Report highlights that fund assets serviced in Jersey raised US$346.5bn at the end of June 2017, up 14.7% from 2016. The number of serviced schemes increased to 1,201 and the total number of sub-funds recorded also showed an increase at 1,686 (compared to 1,162 and 1,662 respectively in 2016).
For fund administration services across both domiciled and non-domiciled funds, Aztec Group remain in leading position for the second consecutive year with US$77.5bn in assets, followed in second place by Saltgate with US$34.2bn and Ocorian moved up in rank to third position with US$22.9.
Edward Moore, Chief Executive Officer of the Aztec Group, said:
“To retain our position as Jersey’s leading fund service provider is a real achievement in such a competitive market and a testament to our relationship driven service model. We’ve continued to invest in our people and our systems as part of our commitment to deliver the best possible client service. It is wonderful to see this approach not only work but also help us to continue to grow organically and attract significant new clients this year.”
In 2017 for both domiciled and non-domiciled funds, the custody ranking brings no surprises, BNP Paribas maintain their first position as the largest custodian with US$22.0bn in assets, JP Morgan keep their second position with US$12.6bn and Capita Trust Company maintain their third place with US$9.8bn.
Newly introduced information on Transfer Agents sees Aztec Group leading by a large margin as the largest transfer agent with a total net asset of (US$ 81.1bn), ahead of Computershare Investor Services (US$ 22.2bn) and Intertrust (US$ 18.9bn).
Among legal advisers, Mourant Ozannes maintain their top spot, advising on 790 funds, followed as last year in second place by Carey Olsen with 508 funds and in third place by Ogier with 367 funds.
Mourant Ozannes Funds Partner, Felicia de Laat, said:
“The growth highlighted by this year's report demonstrates that as the global economic and regulatory landscape continues to change, Jersey's funds industry is able to not just adapt quickly to market volatility, but also to thrive. In the last 12 months we've been instructed on a strong flow of significant new fund launches, including all of the first five funds regulated as Jersey Private Funds when the new regime came into effect in April, and a steady stream thereafter. We regularly work with many of the biggest players in the global funds market, which is a strong vote of confidence in Jersey as a leading jurisdiction of choice and also in our expert team which, according to the data, has maintained its unrivalled lead position for 18 consecutive years.
Having a large, expert team with a collegiate ethos positions us with an ability to manage such significant projects, providing the excellent levels of service, coupled with deep regulatory and market insight that our clients tell us truly sets us apart. This year's Monterey report once again reinforces the significance of Jersey's fund industry to the island's financial services sector as a whole, and as the leading legal adviser to this market, we're very proud to continue to contribute to its success."
The ranking remains also the same for the auditor tables, PricewaterhouseCoopers kept its lead position being the largest auditor with 432 funds ahead of KPMG and EY, respectively with 309 and 193 funds.
Mike Byrne, Partner and Asset Management Leader at PwC Channel Islands commented:
“We’re delighted to have once again maintained our leading position as the largest auditor of Jersey serviced funds. Jersey continues to have 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 in Jersey, 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 second consecutive year, ETF Securities remains in top position of Jersey domiciled schemes with US$17.1bn of assets. CVC Capital Partners this year takes second place with US$15.3bn ahead of BlackRock Financial Management with US$13.1bn.
Most popular fund types for Jersey domiciled funds are private equity/venture capital funds with a total of US$91.1bn (compared to US$83.7bn in 2016) and accounting for 41.3% of assets domiciled in Jersey. They are followed by property real estate funds with US$53.6bn.
“We are pleased to reveal the 2017 highlights of the Jersey fund industry which proved to be a flourishing year for the Island. The evidence is clear to see: a healthy increase of the total assets (+14.7%), especially within non-domiciled funds (+37.2%), private equity rose by +8.8%, 28 new promoters choose Jersey to set up their funds with a total asset value of USD $4.8bn. This is largely driven both by a robust regulatory system and strong specialist service providers which landscape the fund industry.
The introduction of the transfer agents ranking also helps to portray a more exhaustive picture of the services offered on the Island.” commented Karine Pacary, Managing Director of Monterey Insight.
Industry Mergers and Change of Names
The following mergers and name changes took place:
Intertrust Fund Services acquired Elian Fund Services.
Bedell Fund Services re-branded as Ocorian after management buy-out.
SG Hambros Trust re-branded as SG Kleinwort Hambros Trust Company.
The Custodian/Trustee business of Kleinwort Benson is no longer providing custody services to collective investment schemes and is working collaboratively with its existing clients to ensure an efficient and timely exit to a new service provider of their choice.
For more information, please contact:
Managing Director, Monterey Insight
Tel. +44 (0)845 625 3863
Notes to Editors
Monterey Insight is an independent fund research company that provides comprehensive statistical analysis of the Jersey, Guernsey, Ireland and Luxembourg fund industries: the only complete reference of service providers for all funds serviced in these jurisdictions.
As at 30th June 2017, 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 2017.