Jersey’s funds industry is maintaining its upward trajectory – but evolution in the market, regulatory change and competition means that the Jersey Funds Association (JFA) is busier than ever, according to committee members speaking at the JFA’s recent Chairman’s Update event.

Held at the Pomme d’Or recently (1 March), the event saw Chairman Michael Johnson and Vice Chairman Joel Hernandez assess the current landscape and set out some of the priorities for the JFA over the coming year, whilst sub-committee heads also took part in a Q&A session highlighting some of the trends, challenges and opportunities on the horizon.

Pointing to the fact that the value of assets serviced in Jersey rose to new record levels of more than £0.5trn in 2022,Michael also emphasised how important it was to be alive to the potential for change in the wider landscape:

“Our figures continue to illustrate an upward trend, but it’s really important we stay ahead of the curve and anticipate regulatory change and shifts in investor behaviour to maintain our attractive ecosystem for alternative funds.

“Speed to market, cost-effectiveness and service quality are absolutely crucial in our segment of the alternatives market and we are fully focused not only on safeguarding our position but on enhancing our proposition in those areas. On the ESG front, for example, the key is to establish a robust framework but without creating hurdles, whilst on the innovation front we see opportunities to build up a track record in blockchain, tokenisation and digital assets.”

Joel added:

“From a legal and technical perspective, it has never been busier in terms of the need to respond to consultations and international and domestic regulatory change – such as looking at our AML/CFT frameworks, enhancing our range of fund structures and regimes, and ensuring we keep the cost of doing business with Jersey competitive.  We are fortunate in the JFA to have broad and diverse expertise through our membership to support our efforts in these areas.”

The JFA will be holding a series of further events for members over the coming months to explore key areas of note for the industry, including a Legal and Tax Masterclass (20 April) and two Town Hall events on ESG (15 May) and Digital (5 June). The JFA’s annual dinner has also been confirmed for 14 July. Further information can be found via the JFA website.

Following its recent Annual General Meeting (8 July), the Jersey Funds Association (JFA) has elected a new-look committee as it continues to champion Jersey's ecosystem for alternative funds.

With outgoing Chairman Tim Morgan completing his three-year tenure, Michael Johnson takes over the role, with Joel Hernandez taking on the position of Vice Chairman. Michael is Group Head of Institutional Services at Crestbridge, whilst Joel is a Partner at law firm Mourant.

The new committee features some continuity whilst also introducing a number of new faces, with Robin Wilson, Sophie Reguengo, Stephanie Hopkins, Clive Spears and John Riva all joining. Remaining on the committee this year are Richard Anthony, Mike Byrne, Steve Cartwright, Ben Dixon, Ben Honeywood, Dilmun Leach, Robert Milner, Tim Morgan, Simon Page, Martin Paul, Tom Powell, Peter Rioda, Ben Robins, Martin Rowley, Sarah Sandiford and Elliot Refson.

At the AGM, outgoing JFA Chair Tim Morgan, who is a Partner at law firm Maples, provided an assessment of achievements and highlights from the past year:

“Jersey's funds industry continues to operate in a fast-evolving market, with regulatory, economic and geopolitical uncertainty continuing to pose challenges – but the fact that Jersey’s funds industry succeeded in reaching new record highs of assets under administration in 2022 and in each of the past three years speaks volumes about the appeal of Jersey’s platform of stability. As ever we need to continue to work hard to underpin this.

“Reflecting on the past three years, there’s no doubt it has been a busy but exciting time to lead the JFA, through a complex period encompassing the implications for Jersey of the effects of Brexit, to the challenges of the global pandemic, to on going enhancements to Jersey’s international standing for tax and regulation. It is a credit to the committee and to the wider industry that Jersey’s funds offering has gone from strength to strength throughout this period. I’m really grateful for the efforts of all those who have given their time to the committee, including Caroline Harrington, who is retiring from her role as secretary of the JFA after many years. We have achieved a lot – from navigating tax and regulatory changes, to integrating ESG into our thinking and supporting cutting-edge training for our members.”

Meanwhile, newly appointed JFA Chairman Michael Johnson added:

“There’s no doubt that the landscape continues to pose challenges. Geopolitical developments have significantly worsened since the increased hostilities in Ukraine, and from a macro-economic perspective, inflation rates, interest rate changes and other economic indicators are pointing to a significantly more challenging economic environment. Jurisdictionally, the competitive environment remains intense and evolving too.

“But there is plenty for Jersey to be positive about. We have a compelling proposition, an industry that is growing at an impressive rate, and more and more managers of substance looking at Jersey to support their cross-border needs. Private equity, venture capital and real assets are at the heart of global economic rebuilding efforts, and we have precisely the experience and platform here to support that and make a positive impact.”

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Following continued COVID-19 related restrictions for holding large-scale events, the JFA committee has, with regret, once again resolved that it is unlikely that we will be able to hold the 2020 dinner scheduled for 7 May.  

Although we are disappointed to have had to make this decision, we trust you'll understand our position and that supporting Jersey's Framework for managing COVID-19 and ensuring Members' health and wellbeing is our priority at this time.

We are looking at alternative dates for later in the Year and we will notify the membership once further information is available.

In the meantime, we are continuing to proceed with other events on a virtual basis and we'd actively encourage you to participate in these if you can.

As previously advised, in light of continuing COVID-19 related restrictions for holding large-scale events, the JFA committee has, with regret, resolved that it will no longer be possible to proceed with the 2020 dinner, scheduled for 15 October.

We have, therefore, decided to concentrate our efforts on arranging the 2021 Dinner and have secured the  Royal Jersey Showground for Friday 7 May when hopefully restrictions will have been lifted and we can hold an event on the same lines as previously.  We are delighted to confirm that Tom Allen, TV comedian and presenter (pictured below) is, as previously planned, lined up as our Guest speaker for the evening.

Bookings already made will be rolled forward to the revised date in 2021.  However, if you have any queries, or if you would like to make a booking please contact me at enquiries@jerseyfunds.org.

We will continue to monitor the situation but we hope to see you for a celebration on 7 May.

In light of continuing COVID-19 related restrictions for holding large-scale events, the JFA committee has, with regret, resolved that it will no longer be possible to proceed with the 2020 dinner, scheduled for 15 October. Therefore we will be postponing this event, with a view to reinstating the flagship event for Jersey's funds industry in Spring 2021.

We are disappointed to have had to make this decision, however we trust you'll understand our position and that supporting Jersey's Framework for managing COVID-19 and ensuring Members' health and wellbeing is our priority at this time.

The JFA is continuing to plan for the coming year, in anticipation that a return to more normality should hopefully be more realistic from Spring 2021.

In the meantime, we are continuing to proceed with other events on a virtual basis and we'd actively encourage you to participate in these if you can.

2020 Annual General Meeting

Please be advised the 2020 Jersey Funds Association Annual General Meeting will take place on Friday 17 July commencing at 1.00pm via video call.  Any member who would like to attend the AGM is asked to contact Caroline Harrington at enquiries@jerseyfunds.org to obtain the dial-in details.

Below are links to the associated documents relating to the Annual General Meeting.  Any member interested in joining the Committee is asked to complete and return the nomination form to Caroline Harrington by close of business on Friday 10 July.

2020 AGM Letter to Members

2020 AGM Notice & Agenda

2020 Nomination Form

2019 AGM Minutes

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We're currently finalising our 2019 JFA Members Survey, which was launched last month. The results are now largely in and are already providing valuable feedback as to the position of the Jersey funds market.

To mark the completion of the survey, as well as the end of a highly successful year for Jersey's funds industry, we're holding a drinks event from 6.30 - 8.30 at the Jersey Museum on Thursday 28 November.  If you would like to attend, please RSVP to enquiries@jerseyfunds.org.

In addition, if member firms would like to attend a presentation of the survey findings by members of the JFA committee, this will be held just before the drinks at 4pm on Thursday 28 November. Places will initially be allocated on a one place per firm basis – please contact enquiries@jerseyfunds.org for more information.

The ongoing success of Jersey’s funds industry, which registered a record £320bn in assets under administration at the end of 2018, is set to be marked at this year’s Jersey Funds Association (JFA) Annual Dinner next month.

Taking place on Friday 3 May at the Royal Jersey Showground, the black-tie event aims to be a celebration of success for Jersey’s funds industry over the past twelve months. Expected to be attended by more than 400 funds professionals, the event’s gold sponsor is Mourant whilst silver sponsors are BNP Paribas Securities Services, Moore, Ogier, PraxisIFM and PwC.

The event starts at 6.45pm with a champagne reception, sponsored by Carey Olsen.

Guest speaker for the dinner this year will be ventriloquist Nina Conti who has wowed audiences all over the world, from Las Vegas to Melbourne to the Edinburgh Festival.  She will be joined by her regular sidekick Monkey, with other characters including poetry-writing Owl, Scottish grandmother Granny, loud-mouthed New Yorker Lydia and possibly a member of the audience also likely to make an appearance.

There will also be musical entertainment provided by a local band both during and after the dinner.

Mike Byrne, Chairman of the JFA, said:

“Despite the political uncertainty in Europe over recent years, 2018 was actually a good year for Jersey’s funds industry. We achieved record levels of fund servicing business, stellar growth in alternatives, big-ticket fund launches and rising numbers of managers choosing Jersey to bring their funds to market. Our annual dinner is a fantastic way to reflect on and celebrate that success and recognise the professionals who contribute so much to the island’s industry.
“I’m delighted that Nina will provide our entertainment at what should be an extremely enjoyable evening. The dinner has always been popular so I encourage those wanting to attend to book tickets in advance.”

Tables can be booked for either 10 or 12 people and tickets are £85 per person.  To make a booking please contact JFA Executive Secretary Caroline Harrington at enquiries@jerseyfunds.org.

Jersey’s focus on the alternatives market has positioned it positively given ongoing strong sentiment amongst allocators, but innovation will remain key to Jersey’s future success, according to the chairman of the Jersey Funds Association.

Speaking at this year’s annual JFA Dinner (11th May) held at the Royal Jersey Showground, Mike Byrne told an audience of over 480 funds professionals, senior politicians and regulatory representatives that Jersey provides “the very best ecosystem for a funds industry”, with figures for the end of 2017 indicating that the total net asset value of funds under administration in Jersey stood at more than £291bn, up 15% year-on-year.

Pointing to rising levels of business across the alternative asset classes, Mike commented:

“Global allocation to alternatives continues to increase, from pensions, sovereign wealth funds and institutional investors, and we are seeing that in Jersey, with ever-increasing allocations to private equity, private debt, real estate and infrastructure. Our latest figures indicate that Jersey’s funds industry is in excellent health.

“However, those figures are only part of the story – they don’t take into account the Jersey Private Fund (JPF). We know that over the thirteen months since the JPF was introduced, 121 have been launched. I’m optimistic that if we were to include JPF data, that would push us clearly through the £300bn mark.

“We’re also seeing a growing community of managers who are fully resident in the island, across private equity, hedge funds, debt, real estate and crypto. These managers are bringing a real depth and diversity to our industry, at a time when questions around substance are never far from the agenda. Vitally, they are also providing some excellent opportunities for further diversity in career choice for our school leavers and graduates.”

Meanwhile, Mike pointed to challenges faced by the industry:

“The industry has faced a number of significant challenges over the past year. Brexit continues to be one area of uncertainty but it has not had the impact on our industry that might have been feared. In fact, since Brexit we have seen some of the largest funds ever raised in Jersey – Softbank’s Vision Fund, CVC Fund 7, and Nordic 9 to name just a few.

“A key question around Brexit has been how we bring to life the Jersey proposition for both EU and non-EU investors. It is vital that we continue to develop clear and compelling messages, in particular in relation to the opportunity afforded by our private placement regime. There are now close to 150 alternative fund managers going to market through private placement in Jersey, with almost 300 funds distributed into Europe through these channels, a 15% year on year increase.”

Looking to the future, Mike emphasised the importance of innovation for Jersey’s success:

“Product innovation remains key to how we stay on top. With that in mind we look forward to shortly welcoming onto the statute books our Limited Liability Company (‘LLC’) and Jersey Registered Alternative Investment Fund (‘JRAIF’) products, which we envisage will help us maintain the momentum we’ve seen with JPF and LLP vehicles.  We must continue to evolve and respond to the world in which we operate. If we can do that I remain confident of the future of the funds industry in Jersey.”

Lead sponsor for the evening was Mourant and Silver sponsors were BNP Paribas Securities Services, Moore, Ogier and PwC, whilst the champagne reception was sponsored by Carey Olsen.

The value of regulated funds being administered in Jersey rose to a record level of almost £300 billion at the end of 2017 driven primarily by a rise in private equity business, according to the latest figures to be collated by the Jersey Financial Services Commission (JFSC) and published by Jersey Finance.

In the final quarter of 2017, the total net asset value of regulated funds being serviced through Jersey rose by 10% over the quarter and by 12% year-on-year to stand at £291.1 billion (as at 31 December 2017), the highest value ever recorded.

This growth was driven by the alternative asset classes, which increased annually by 13% to represent more than three quarters (77%) of Jersey’s total funds activity. Within the alternative asset classes, private equity fund values performed particularly strongly, rising by almost a third year-on-year (30%) to stand at £82.7 billion – the second consecutive year private equity has risen by that level. Hedge fund values increased by 6% to £50.7 billion, real estate rose 2% to £37.5 billion, and the combined total of infrastructure, credit and debt funds rose by 7% to stand at £50.6 billion.

Commenting on the figures, Jersey Finance CEO Geoff Cook said: “These are clearly very encouraging figures for 2017. On a macro level, these are uncertain times but the indications are clear – Jersey is seen as a forward-thinking jurisdiction that can provide first rate standards of regulatory oversight, that is highly focused on supporting alternative fund managers, and that can offer an effective platform for generating better returns. All that is proving an attractive proposition for managers and investors looking for stability and future certainty.”

Mike Byrne, Chairman of the Jersey Funds Association added: “Over the past 12 months, Jersey has continued to work closely with the alternative fund management community, and these figures are a reflection of that hard work. Some of the largest private equity funds brought to market last year were structured through Jersey and we continue to see managers selecting Jersey to access both EU capital through private placement and the key UK investor market.  

“In addition, more than 100 Jersey Private Fund structures have also been established in less than a year since launch and their value is not captured in these regulated fund figures, so it’s clear there is real momentum in Jersey’s funds industry at the moment. With asset managers expected to substantially increase their allocation in alternatives over the coming months, we are extremely confident in the future of the industry.”
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Trends in alternate fund structuring, institutional investor behaviour and access to EU investors post-Brexit are all themes to be explored at this year’s Jersey Finance Annual London Funds Conference to be held at 8 Northumberland Avenue on 24th April 2018.

The value of funds being administered in Jersey rose to a record level at the end of 2016, the latest figures to be published by the jurisdiction’s financial regulator have shown.

In the final quarter of 2016, the total value of funds being serviced through Jersey rose by 15% over the year to stand at £260bn (US$335bn), the highest value ever recorded. This growth was driven by the alternative asset classes, which increased annually by the same proportion to £189.2bn (US$243.8bn), representing almost three quarters (73%) of Jersey’s total funds activity.

Within the alternative asset classes, private equity fund values performed particularly strongly, rising by almost a third year-on-year (30%) to stand at £59.7bn (US$77bn), whilst there was a significant jump in the combined total of ‘specialist’ funds, including infrastructure, credit and debt funds (48%). Real estate fund values also rose by 7% during the course of the year, whilst hedge fund values remained steady, ending the year at £52.4bn (US$67.5bn).

Commenting on the figures, Jersey Finance CEO Geoff Cook said: “These are clearly very encouraging figure for 2016, and support the view that, in an uncertain market, Jersey is an attractive, stable and effective platform for alternative fund managers. We are a well-governed, risk-averse, outward-looking jurisdiction with ongoing European market access and strong links to the UK, and all that is proving an attractive proposition for managers and investors looking for stability and certainty.”

Mike Byrne, Chairman of the Jersey Funds Association added: “It’s a powerful global endorsement of Jersey that some of the highest value funds in the world are deciding to launch in Jersey and a number of new promoters are now using Jersey for the first time. Moreover, current trends indicate that asset managers are set to substantially increase their allocation in alternatives over the coming months, which puts our buoyant funds industry in a very strong place indeed.

“We’re not complacent though, which is why we’re continuing to focus on innovation within our funds regime. The launch in March of our new fast-track Jersey Private Fund is an example of that, and we are already seeing strong interest in that as a vehicle for institutional and high net worth investors to bring highly targeted and timely funds to market.”

Global trends to increase allocations to alternative assets should give managers confidence in the future of Jersey’s funds industry, according to the chairman of the Jersey Funds Association (JFA).

Speaking at this year’s annual JFA Dinner (21st April) held at the Royal Jersey Showground, Mike Byrne told an audience of over 400 funds professionals, senior politicians and regulatory representatives that moves amongst institutional investors were having a positive impact on the performance of Jersey’s funds industry, with figures for the end of 2016 indicating that the total net asset value of funds under administration in Jersey stood at £260bn, up 15% year-on-year.

Pointing to rising levels of business across the well-established hedge, real estate and private equity asset classes, but also significant growth in emerging areas including debt, credit and infrastructure funds, Mike commented:

“It’s clear that global allocation to alternatives continues to increase, from pension funds, sovereign wealth funds and institutional investors. Figures from Preqin for the first half of 2017, for instance, show that 57% of investors are expected to allocate more to private debt in the coming year, whilst 40% will increase more to private equity, 38% to infrastructure and 24% to real estate funds.

“All four asset classes form the bedrock of Jersey’s funds industry which, against this backdrop, looks in excellent health with levels now at their highest in five years. Jersey’s focus on alternative investment funds has created a very stable platform of long-term capital that is largely insulated from short term market sentiment.”

Meanwhile, Mike highlighted that activity levels across Jersey’s funds community have been very high over the last year with both existing and new funds:

“The fact that a number of new promoters are now using the jurisdiction for the first time is brilliant news, whilst to have some of the highest value funds in the world launching in Jersey is a very powerful global endorsement of the quality of the jurisdiction and its people.”

Looking at the year ahead, Mike suggested that market developments and a sustained focus on regulatory enhancements could present Jersey with some opportunities:

“In light of Brexit, third-country AIFMD passporting has become a political rather than a regulatory issue, which is disappointing, but doubling down on our tried and tested National Private Placement Regime (NPPR) as well as Reverse Solicitation has proven an effective distribution strategy for the types of funds we look after in Jersey. In fact, the uptick we have seen in NPPR is evidence of it being a genuinely attractive alternative to full AIFMD compliance.

“Our continued focus on enhancing our funds regime, meanwhile, is vital, and the reaction to the introduction in March this year of the Jersey Private Funds Regime has been extremely positive, with a strong pipeline of applications already received. The challenge going forward is to ensure we retain the optimum balance between compliance on the one hand and being business-friendly on the other. Competition is ever increasing, as is the level of sophistication of financial criminals, and getting this balance right is key to the continued success of Jersey as a high-quality specialist funds centre.”

The JFA Annual Dinner helped raise in excess of £5,000 for the JFA’s nominated charity, Mind Jersey, and featured comedian Henning Wehn, well known for his appearances on Have I Got News For You, Would I Lie to You, 8 out of 10 Cats and QI, as guest speaker. Lead sponsor for the evening was Mourant Ozannes and Silver sponsors were BNP Paribas Securities Services, Moore, Ogier & PwC, whilst the champagne reception was sponsored by Carey Olsen

Details around Jersey's newly-launched fund framework were welcomed by UK fund practitioners at the Jersey Finance Annual Funds Conference in London last week.

At the half-day event on Tuesday (21 March), which attracted almost 400 fund professionals, the new Jersey Private Fund regime was highlighted as one of the innovations giving the industry optimism in the future of the sector, despite the uncertainties posed by Brexit. Experts from London and Jersey welcomed the more streamlined and fast-track regime, under which funds for up to 50 investors could be established in 48 hours.

Opening the conference, Geoff Cook, CEO, Jersey Finance, flagged research by Preqin which showed that asset managers are forecasting substantial increases in their allocation in alternatives, a further positive sign for Jersey, including 62% to private debt, 53% to infrastructure and 48% to private equity (Preqin Investor Outlook: Alternative Assets H1 2017).

He said: “We are well placed to benefit from the current uncertainties in the markets. Our market access arrangements with Europe continue, we are a sound, well governed, risk averse jurisdiction with enduring commercial links to London, which will appeal to international investors looking for stability and certainty.”

Later, Tim Morgan, Vice Chairman, Jersey Funds Association, reported that deal flows across all asset classes were positive and that there was further opportunity to build business based on the huge asset management capabilities of London and the structuring expertise in Jersey. Mr Morgan spoke on a panel which considered the impact of Brexit and regulation such as BEPS, with John Maxey, Tax Partner, Deloitte; Deborah Lloyd, Chairman, The Association of Real Estate Funds; and Mike Jones, Director, Policy, Jersey Financial Services Commission.

Conference panelists also highlighted the importance of the symbiotic relationship that endures between Jersey and London. Jonathan Pugh-Smith, legal counsel, Bregal Investments LLP; James Duffield, Director, Aztec Group; Robert Mellor, UK Asset Management Tax Partner, PwC; and Jane Pearce, Managing Director, Vistra, all agreed that the relationship would be unaffected by Brexit.
The conference, at 8 Northumberland Avenue, also included a keynote address on the political landscape from the leading political journalist Nick Robinson, who also moderated the conference panel sessions, and a presentation from Tim Harford, behavioral economist, journalist and broadcaster.

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The number of Jersey-registered alternative investment fund managers marketing into Europe through national private placement regimes (NPPRs) under the EU Alternative Investment Fund Managers Directive (AIFMD) continued to rise consistently over the first six months of 2016, according to figures from the Jersey Financial Services Commission (JFSC).

As at June 2016, 115 alternative investment fund managers (AIFMs) had been authorised in Jersey to market into Europe through NPPRs, up 11% compared to December 2015. Over the same period, the number of Jersey alternative investment funds (AIFs) being marketed into Europe through NPPR stood at 251, representing a 9% increase.

These figures come shortly after the European Securities and Markets Authority (ESMA) made its further recommendation, on 19 July, that Jersey should be amongst those ‘third countries’ granted an AIFMD passport.

In addition, the Government of Jersey and the JFSC launched a joint consultation this week aimed at enhancing Jersey’s funds regime. The consultation seeks to simplify and rationalise numerous aspects of Jersey’s funds environment, with the paper confirming the intention to introduce new products to the market.

These are anticipated to include a new manager-led Jersey registered alternative investment fund (JRAIF). The JRAIF will be supervised by the JFSC by proxy as it will be the relevant AIFM who will be responsible for ensuring the fund’s AIFMD compliance. The consultation also provides detail around a proposed new universal definition of a ‘Professional Investor’ and consolidation across certain fund types.

The latest figures for Jersey’s investment funds sector show that Jersey’s funds industry continues to grow, with the Net Asset Value of assets under administration rising to £228.4bn in the first quarter of 2016, the second highest level since 2008. This is being driven by alternative asset classes and in particular by strong performances in the private equity (up 10% annually) and real estate (up 20% annually) asset classes.

Geoff Cook, CEO, Jersey Finance, said:

“It’s clear that the alternative fund management community are continuing to find real appeal in the optionality and certainty of European market access Jersey is able to offer. The latest figures show that the appetite to use Jersey’s existing NPPR route is consistently strong amongst managers, whilst the potential for an AIFMD passport in the future is giving managers real confidence in Jersey’s long-term future as an alternative funds domicile.”

Mike Byrne, Chairman, Jersey Funds Association, added:

“As a jurisdiction, we recognise that we need to continue to enhance our funds environment in a new regulatory landscape and this latest consultation forms a significant part of that. As well as making Jersey’s regime clearer, simpler and more streamlined, it also demonstrates that the jurisdiction is committed to bringing innovative products, such as the manager-led registered fund product, to the market.”