Jersey Fund Industry tops 17% Growth
New findings from Monterey Insight, the independent fund research company, reveal the market shares of all service providers in Jersey’s fund industry.
The 25th annual Monterey Jersey Fund Report highlights that fund assets serviced in Jersey rose to US$481.2bn at the end of June 2019, up 17.1% from 2018. The number of serviced schemes increased to 1,336, up 4.5% and the total number of sub-funds recorded were also up to 1,807 which represents a 5.0% increase.
For fund administration services across both domiciled and non-domiciled funds, the Aztec Group maintain the largest market share for fund assets under administration for the fourth consecutive year, with US$167.0bn in assets. They are followed in second place by Saltgate with US$48.4bn and Intertrust climb to third position with US$26.8bn.
Among transfer agents and of serviced funds, Aztec Group maintain their lead, with a total net asset of US$169.1bn. Intertrust take the second spot with US$26.6bn ahead of Computershare Investor Services ranked in third position this year with US$22.8bn.
Edward Moore, Chief Executive Officer and founder of the Aztec Group, commented:
“We’re delighted to be named Jersey’s leading fund administrator for the fourth year running. This is an incredible achievement, and we’re immensely proud of our teams both in Jersey and the wider Group for the part they continue to play in helping us consolidate our position as market-leader. It is a true testament to the professionalism of our employees and their unwavering commitment and dedication to delivering the best possible service to our clients.”
The custody ranking of serviced funds remains unchanged for the first two positions: BNP Paribas Securities Services secure again their top position as the largest custodian by assets with US$22.2bn followed by J.P. Morgan in second position with US$11.9bn. Sanne Trustee Services take the third place this year with US$11.7bn.
Among legal firms, Mourant remain the number one legal adviser, advising on 733 funds, followed, as last year, in second place by Carey Olsen with 714 funds. Ogier with 443 funds maintain their third position.
Mourant Head of Investment Funds, Jersey, Felicia de Laat said:
"Our dominant position as Jersey's leading law firm for investment funds is a reflection of our extensive experience, in-depth technical focus and deep resources in the sector, built through many years of sustained growth and trusted relationships with our clients.
Mourant is unrivalled for strength-in-depth, with a team comparable to the size of a leading London-based investment funds practice who are involved in all significant legal, technical and tax developments and consultations impacting the sector. This combination is unique in Jersey, allowing us to provide truly bespoke services to offshore fund managers and investors.
Our clients are our focus, so we're really proud to continue to be the first choice in Jersey with both new and longstanding providers. Since this data was gathered, our team has been instructed on a strong flow of significant new fund launches and a large amount of non-captured work, including property structures (JPUTs). As a firm, we have worked on more incorporations than any other firm, which is a core indicator of new business.
This looks set to continue in 2020, signaling an even stronger year ahead for our clients, their service providers and our team – which is great news for Jersey."
Among auditors and as last year, PwC hold again the leading position being the largest auditor with 433 funds ahead of KPMG with 361 funds. This year, Deloitte climb to third position with 190 funds.
For assets, Deloitte is leading with US$121.3bn followed by PwC and KPMG (respectively with US$96.6bn and US$78.5bn).
Mike Byrne, Partner and Asset Management Leader at PwC Channel Islands, said:
“It is extremely pleasing that we have retained our leading position again as the largest auditor of Jersey serviced funds. In this vastly changing environment, Jersey continues to have a thriving investment 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. This ranking reflects our commitment to both our clients and to the funds industry in Jersey and we very much look forward to the future, as we maintain our focus on providing top quality advice to local and global organisations in all sectors of the financial services industry and beyond.”
Among fund management companies of both domiciled and non-domiciled schemes, SoftBank is in first position with assets totalling US$70.5bn, followed in second position by Ardian with US$47.7bn and CVC Capital Partners in third place with US$45.9bn.
Private equity/venture capital and infrastructure funds remain the most popular fund types and rise to US$320.1bn with a total of 826 funds and sub-funds. This trend remains the same for Jersey domiciled funds, where private equity products reach US$194.2bn with a total of 381 funds and sub-funds.
For Jersey domiciled funds and for all type of products, 125 new schemes were launched during the year, totalling for US$16.0bn.
Karine Pacary, Managing Director of Monterey Insight, commented:
The Jersey Fund Industry maintains its momentum for three consecutive years enjoying an impressive 17% average growth. As expected, Private Equity products including infrastructure are the main drivers of this asset inflow. They remain a crucial element to the attractiveness of the island’s fund business and the consolidation of its fund industry.”
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, Luxembourg and UK fund industries: the only complete reference of service providers for all funds serviced in these jurisdictions.
As at 30th June 2019, leading service providers for all funds serviced in Jersey (i.e. including non-domiciled funds under administration or custody in Jersey) were as follows:
Source: Monterey Insight, Jersey Fund Report 2019.