Private Equities Lead New Business in Jersey
New findings from Monterey Insight, the independent fund research company, reveal the market shares of all service providers in Jersey’s fund industry.
The 26th annual Monterey Jersey Fund Report highlights that fund assets serviced in Jersey rose to US$493.0bn at the end of June 2020, up 2.5% from US$481.2bn in 2019. The number of serviced schemes increased to 1,495, up 11.9% and the total number of sub-funds recorded were also up to 1,981 which represents a 9.6% increase (from 1,336 and 1,807 respectively).
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 fifth consecutive year, with US$174.7bn in assets. They are followed in second place by Saltgate with US$46.3bn and R&H Fund Services take third position with US$28.8bn.
Among transfer agents of serviced funds, Aztec Group also maintain their lead, with a total net asset of US$175.0bn. Computershare Investor Services and Intertrust swap positions with Computershare Investor Services climbing to the second spot with US$29.0bn ahead of Intertrust ranked in third position this year with US$27.4bn.
Edward Moore, Chief Executive Officer and founder of the Aztec Group, commented:
“It’s fantastic to see our funds industry in such good health and remaining as resilient as ever. To be recognised as Jersey’s leading administrator for the fifth consecutive year is an incredible achievement. It’s one which our teams in Jersey and across the wider Group can be extremely proud of. Creating a compelling client experience takes real dedication and I want to thank all of our colleagues for their hard work and service.”
BNP Paribas Securities Services again secure their top position as the largest custodian by assets with US$18.7bn followed by Sanne Trustee Services who created the surprise and took the second spot with US$12.7bn. J.P. Morgan take the third spot this year with US$10.9bn.
Ross Youngs, Head of Client Development at BNP Paribas Securities Services, commented:
“We are delighted to be announced as the leading Custodian of funds serviced in Jersey. Our priority is to deliver outstanding client service and to continue to grow in partnership with our clients. We are very excited about the prospects for growth in Jersey as we continue to evolve our end-to-end fund servicing proposition through continued investment in our technology and staff.“
Among legal firms of serviced and distributed funds, Carey Olsen also caused a surprise and take the top spot in the rankings, advising on 845 funds. For the market share of domiciled funds, Carey Olsen maintained their lead with 457 funds. In both tables, they are followed in second place by Mourant, advising respectively 814 funds and 360 funds. Ogier remain third position with 516 and 295 funds respectively.
Robert Milner, a partner in Carey Olsen's Jersey investment funds team, said:
"We have for many years been working hard to become the 'go to' funds team in Jersey. It is a very competitive market and the annual Monterey publication is a hugely valuable tool for clients and fund advisers, providing truly impartial analysis. We welcome the news that Carey Olsen now leads the way in terms of total fund numbers as well as the other categories where we remain in first place.
This milestone for us has come following an incredibly tough year for everyone. Ensuring client demands are met and maintaining our standards of quality and service when some or all of us are working from home has been challenging. We're just very grateful for the calibre and professionalism of our team, the quality of relationships we hold with both clients and advisers who continue to select Carey Olsen, as well as the confidence that is placed in Jersey as a funds jurisdiction. We will continue to support our team and serve our clients."
Among auditors of serviced funds, PwC are once again the largest auditor with 467 funds ahead of KPMG with 406 funds. Deloitte maintain their third position with 245 funds.
For assets, Deloitte is leading the table again this year with US$128.0bn followed by PwC with EY climbing to third place.
Lisa McClure, Partner at PwC Channel Islands, said:
“I am delighted that we have retained our market-leading position yet again as the largest auditor of Jersey serviced funds. In these particularly challenging times, Jersey has demonstrated its resilience, strength and adaptability and continues to have a thriving investment management industry, being well-recognised as a global centre of excellence for investment funds, providing a robust regulatory environment, appropriate structures and first-class professional services. This accolade is a true testament to our team’s capabilities and their commitment across the Channel Islands to both our clients and to the local funds industry. They each have a key role to play in helping us maintain this leading position. We have considerable confidence in the future, whatever lies ahead, and will maintain our focus on providing top quality advice to both local and global organisations in all sectors of the financial services industry and beyond.”
No change in 2020 from last year among fund management companies of both domiciled and non-domiciled schemes: SoftBank maintain their first position with assets totalling US$77.8bn, followed in second position by Ardian with US$45.1bn and CVC Capital Partners in third place with US$41.5bn.
Private equity/venture capital, the main driver to the Jersey fund market industry, account for US$325.9bn of assets for domiciled and non-domiciled funds with just over 950 funds and sub-funds and of these US$210.1bn are Jersey domiciled funds.
Over 120 new Jersey schemes were launched during the year, totalling US$14.5bn and of these, over 65 funds and sub-funds totalling US$11.1bn were private equity/venture capital.
Karine Pacary, Managing Director of Monterey Insight, commented:
“In the 3 years from 2017 to 2019, Jersey enjoyed a double digit increase of growth. Looking at this year's results and considering the climate around Brexit and COVID 19, Jersey demonstrated a resilient performance and again shows a positive return. We can clearly see that although 2020 was challenging, especially due to lock-downs in most countries, the fund industry has not been too severely impacted thus far. The positive results in Jersey once again tell us this is a jurisdiction of excellence and demonstrate its appeal for asset managers of in particular alternative funds.”
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 2020, 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 2020.