Towards the end of 2022, Jersey Finance embarked on its first US roadshow, hosting events in Miami, Chicago and San Francisco, as well as New York, where it has had an office for three years.

A number of industry professionals from Jersey Funds Association member firms were involved in the roadshow, including Ian Horswell, Global Head of Business Development for Funds at Suntera Global. Here, Ian reflects on the roadshow and how Jersey is evolving its proposition for US managers…

Q: What sort of business is currently being undertaken between Jersey and US?

Ian Horswell (IH): We continue to believe that Jersey is a fantastic jurisdiction for US managers looking to access European assets or working with European investors – it is well respected, well-regulated and has tax neutrality, all of which is appreciated increasingly by managers we speak to.

In May last year, for instance, we acquired US-based fund services provider Socium Fund Services and since then we have seen rising levels of new business flows between both jurisdictions.

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Q: Why is the US such an interesting market for Jersey?

IH: The US is the largest funds market in the world and we’ve seen some exciting growth in the US this year. It’s also a market that is experiencing a sharp movement towards the outsourced model – so it’s a space where Jersey can add real value.

Against that backdrop we hired a dedicated senior Business Development lead in the US to help tell our and Jersey’s story. The feedback is that US managers are increasingly used to the IFC model and see Jersey as an interesting gateway to Europe.

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Q: How is Jersey’s reputation evolving in the US?

IH: I think Jersey’s reputation is growing all the time. Jersey Finance and JFA member firms are more and more active in the US, which is giving Jersey greater visibility, while a number of US law firms have a large presence in London, which means that Jersey is already familiar to them. US managers and lawyers are using Jersey and having a good experience in doing so – that quality of service is a really strong play in the US market.

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Q: How useful was the Jersey Finance US Roadshow in getting Jersey’s message across?

IH: The roadshow was really useful, both from a jurisdictional and an industry perspective. Jersey Finance and Suntera are already well known in New York and its surrounding areas, and this series of roadshow events brought our story to a much wider audience and new groups of stakeholders.

Chicago, for example, was a new city for both Jersey Finance and Suntera, but actually Chicago has several managers who use Jersey and we had lots of legal contacts in the area too. The roadshow gave us an opportunity to reinforce our message face to face with a new audience, which was vital, and gave managers a chance to ask questions.

It also gave us an opportunity to really focus and ensure our clarity of message – that Jersey is well positioned to support the US market, with excellent experience in all major asset classes. One important point which we highlighted a lot during the week was our political stability, whilst we also pointed consistently to how, as a small jurisdiction, Jersey punches well above its weight with over 14,000 financial services employees.

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Q: How well is Jersey perceived in the US market?

IH: Overall, the Roadshow has really helped move the dial in terms of Jersey’s proposition for the US. What was clear was that those managers and lawyers that use Jersey already are big fans.

However, we also need to continue to focus on other groups, those that are less familiar with what we do, and do some educational work to explain our USP over other IFCs – in particular in relation to our responsiveness, pragmatic regulator, and the impressive flexibility and experience we offer. That will be our focus for the US in 2023.

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Find out more about Jersey's US proposition for US managers here and about Jersey Finance's US roadshow here.

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With figures from the JFSC confirming that total regulated funds business grew by a fifth over 2021 and now stands at almost £460bn (March 2022) and with 200 managers and around 370 funds currently marketing into the EU through private placement in Jersey, the JFA has worked with industry to put together a new factsheet designed to illustrate why Jersey provides such as compelling proposition for alternative funds compared to other jurisdictions.

You can access that factsheet here.

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The total number of registered Jersey Private Funds (JPFs) has surpassed the 500 mark, according to the latest figures, as the structure continues to assert its appeal for flexible alternative fund structuring.

According to the latest quarterly statistics collated by the Jersey Financial Services Commission and published by Jersey Finance, there were 502 JPFs at the end of September 2021, a number that has risen by 38% compared to the same time the previous year.

Launched in 2017, the JPF structure is tailored to the needs of small numbers of sophisticated investors and offers high levels of flexibility, fast-track authorisation and lighter touch ongoing regulatory requirements. Further, the nimble nature of the structure mean it chimes particularly well with the tried and tested private placement route for marketing funds into Europe as well as within the ESG space.

Commenting on the figures, Jersey Finance CEO, Joe Moynihan, said:

“These latest figures show the enduring strength of the JPF, particularly when it comes to private capital co-investment and cross-border institutional alternative fund structuring. By being cost-effective, flexible and swift to market, the structure has genuinely become a go-to vehicle that has, undoubtedly, played a part in the sizeable growth we’ve seen in our funds sector as a whole.”

An ability to remain agile in a changing landscape, deliver innovative solutions and offer a platform of stability are key differentiators for Jersey’s funds industry that are resonating clearly with managers and investors, according to the chairman of the Jersey Funds Association (JFA).

JFA Chair Tim Morgan gave his update at the JFA Annual Dinner recently (23 September), attended by more than 350 funds and wider industry professionals, including an overview of the current funds landscape, the ongoing work of the JFA with its key stakeholders in Jersey, and future opportunities for Jersey’s funds sector. It was the first physical return to events for the JFA since 2019, since when all updates had been provided on a digital basis.

Pointing to the fact that Jersey’s funds industry recorded another new record high of fund assets being administered at the half-way point in 2021 (£436bn), with private equity and venture capital increasing by 21% year-on-year and the number of Jersey Private Funds (JPFs) rising to 456, Tim commented:

“The latest figures show that Jersey’s focus on alternative investment funds continues to provide a stable platform of long-term capital. From the start it was clear that the pandemic was affecting participants differently. Large, well-known sponsors with strong platforms continued to fundraise. Conditions were more challenging for new and smaller investment groups. However, many have in any case proceeded with the raising of successful, small, first funds and club deals, and that correlates with the continued growth in the number of JPFs we have seen. It’s a real endorsement of Jersey’s appeal and expertise.”

In addition, Tim, who is also a partner at the Jersey legal practice of the Maples Group, highlighted the importance of Jersey’s funds industry maintaining momentum in delivering innovative solutions to global investors:

“Jersey has continued to test innovations in digital assets, as well as increased amounts of structures aimed at sustainable technologies and related assets, which is very positive. In addition, significant changes have also occurred in the administration space – increasingly tech is a key component of how services are being provided, which is enhancing how governance, risk management and compliance are managed in practice. Jersey service providers have been impressive in adopting a digital first approach over the past year and this is undoubtedly a key part of our success.”

Meanwhile, Tim also highlighted that shifts in global geopolitics, regulation and competition were providing challenges, with Jersey’s focus on maintaining a perfect ecosystem for alternative funds putting it in a strong position:

“The political environment is volatile – the change in US administration; increased pressures from the EU and OECD in relation to tax; numerous policy initiatives from UK in the post Brexit and post pandemic environment; upcoming elections in Germany and France. All this means that there is a need for continual engagement in relation to Jersey’s position internationally. At the same time, jurisdictionally, the competitive environment is intense.

“However, Jersey’s ability to pivot in an agile manner, in particular between JPFs and more narrowly-held joint venture and co-investment vehicles, is valuable and provides popular, efficient solutions. At the same time, Jersey has an incredibly strong culture of partnerships with the JFSC, government, and other industry elements all working together on areas of opportunity or concern for our funds and wider finance industry. This is a real differentiator for us, as we continue to focus on our core message - that Jersey offers a unique ecosystem to provide a platform of stability in a rapidly changing market.”

Entertainment at the event, which was held at the Trinity Showground, was provided by comedian and writer Jo Caulfield and London-based singer-songwriter and former Jersey Young Musician of the Year Sam Walwyn.

The main sponsor of the dinner was Mourant, whilst silver sponsors were BNP Paribas Securities Services, IQ-EQ, Ogier and PwC, and the champagne sponsor was Carey Olsen.

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The rise of sustainable finance, the impact of Brexit, EU regulation and the fallout of the pandemic all have the potential to shape considerations around alternative fund domicile selection, according to new research published recently by IFI Global and supported by Jersey Finance.

Based on the views of alternative managers, law firms and advisors from across North America, Europe and Australasia, including some of the world’s largest investors in alternatives, the research for this new report – entitled ‘The Future of International Fund Domiciliation 2021’ – was carried out between October 2020 and February 2021.

More information and the full report can be found here.

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Live streamed last week (4 February), the latest Jersey Finance Funds Masterclass, which featured a number of industry and Government of Jersey representatives, explored what lies ahead for the European alternative funds landscape in the wake of Brexit with the transition period having now come to an end. Amongst the themes explored by panellists were the change stemming from Brexit, the review of the AIFMD, the shifting global corporate tax environment and the stability Jersey offers the alternative funds community in light of this period of change.

Watch the Masterclass again here.

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With the end of the transition phase looming, new figures continue to point towards Jersey playing an increasing role in enabling alternative fund managers to access EU investor capital post-Brexit.

According to recent data from the Jersey Financial Services Commission (JFSC), the number of managers choosing to market their funds into the EU through Jersey using national private placement regimes (NPPR) is continuing to rise.

As at 30 June 2020, there were 192 Jersey-registered alternative managers marketing their funds into the EU through private placement – a 5% rise on the figure from six months prior and 12% compared to June 2019.

In addition, the number of Jersey-registered funds marketing into the EU through NPPR also increased to stand at 333, representing a 4% rise since December 2019 and 7% annually.

Commenting on the figures, Joe Moynihan, CEO, Jersey Finance, said:

“With Brexit deal negotiations finely poised, the likelihood is that there will continue to be uncertainty for some time around the way non-EU funds, including UK funds, can be marketed to EU investors. The fact remains that private placement provides a tried-and-tested, flexible and cost-effective solution for third country private equity, infrastructure and other alternative managers to continue to target EU investors in light of Brexit.

“These figures are evidence of a sustained trend stretching back some years now of managers putting their faith in Jersey’s platform and in particular the private placement route to market, and we expect to see further growth in this area as managers implement post-Brexit strategies.”

Tim Morgan, Chair, Jersey Funds Association, added:

“This is a critical moment for managers as they explore models and structures that are future-proofed against the backdrop of Brexit, and the clear evidence is that private placement through Jersey, backed-up by the jurisdiction’s expertise, framework, and oversight, remains a vital and increasingly popular solution amongst alternative managers, that can guarantee ongoing seamless market access.”

According to the latest quarterly figures, Jersey currently administers £361bn of fund assets, as at June 2020.

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‍By JFA member firm Langham Hall

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Over the past few months, we have seen the fundraising landscape turned on its head,with many LPs halting any new allocations and instead paying careful attention to their existing portfolios.

In late March we estimated that over half of global LPs had pressed pause on underwriting new private fund investments, either stopping their investment allocations entirely, or only proceeding with in-process investments.

As markets begin to open up again, we are seeing positive sentiment from LPs, who are now starting to look at resuming their investment programmes, albeit with perhaps a different risk appetite to that of 2019.

Looking to Europe in particular, we have seen a sustained increase in the number of non-EU sponsors looking to market to the bloc, where the aggregate AuM now exceeds €23 trillion.

For these sponsors, there are several routes to market, with no “one size fits all” approach. These include reverse solicitation, marketing under National Private Placement Regimes (“NPPR”), or the setup of a European parallel vehicle to access the marketing passport under the Alternative Investment Fund Managers Directive (“AIFMD”):

·        Reverse Solicitation: this refers to the acceptance of subscriptions from investors that actively solicited the manager without any active marketing taking place. Managers that receive genuine inbound enquiries may accept subscriptions via reverse solicitation, but it would be prudent to document that true reverse solicitation has taken place in case of litigation further down the line. Due to its passive nature, reverse solicitation cannot be considered a marketing strategy.

·        Private Placement: for managers using non-EU structures, e.g. Cayman, Delaware or Channel Islands, some countries still retain their National Private Placement Regimes. These can be tricky to navigate but for managers raising in just a handful of countries, this can be a cost-effective way of accessing Europe. For many countries, the manager will be required to complete and file Annex IV reports for each Alternative Investment Fund (“AIF”) being marketed. For countries such as Germany and Denmark, a depositary-lite is required to be appointed. It is important to note that NPPR is particularly difficult in much of southern Europe, including France, Italy and Spain.

·        European Parallel: Under AIFMD, funds which operate within this framework qualify for the European marketing passport, allowing these AIFs to be distributed in all 28 European member states. In this model, the fund will be required to appoint a regulated full scope Alternative Investment Fund Manager (“AIFM”), as well as a depositary. We often see these funds setup in Luxembourg, using a host-AIFM, to avoid the regulatory and substance burden of setting up a sponsor owned Luxembourg AIFM. By having an AIFMD compliant parallel fund, managers can accept capital opportunistically and at short notice. There are also no restrictions on where the fund can be marketed (although there are restrictions on the parties to whom it can be marketed).

Clearly there are pros and cons to each method, and managers will need to review which is the most suitable depending on their marketing strategy. However, with such a large pool of institutional capital in Europe, it is getting harder and harder to ignore the fundraising potential in the region.

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Resilience in the face of an uncertain market, including the Covid-19 pandemic, and a stable platform designed to provide the perfect ecosystem for alternative funds should position Jersey strongly in the short and long-term, according to the chairman of the Jersey Funds Association (JFA).

With this year’s JFA Annual Dinner being postponed until later this year, Chair Tim Morgan gave a webinar update last week (3 June), when he provided an overview of the current funds landscape, the work of the JFA and also outlined future opportunities for the industry.

 Pointing to the fact that Jersey’s funds industry recorded a new record high of fund assets being administered last year (£346bn), a figure that included a 19% year-on-year jump in private equity business in particular, Tim commented

“In the first part of 2020, we continued to see a steady demand for Jersey funds, including from existing managers continuing to launch, often with larger, successor funds. Just as importantly, we’ve seen a sustained strong take up of the Jersey Private Fund, with managers converting to the structure and a growing number of smaller, start-up and spin-out managers opting for it too where the JPF's scalability and cost effectiveness, combined with Jersey's opt in approach for EU marketing, makes it a particularly strong choice for new structures. There are now more than 350 JPFs, which is a hugely positive story and a great endorsement of Jersey’s reputation as a specialist centre for alternatives.”

In addition, Tim highlighted some key findings from a recent survey of JFA members, which revealed a widespread positivity around key issues such as Brexit:

“The European market is still grappling with Brexit uncertainty, but actually more than 80% of our members consider that Brexit will have either a neutral or positive impact on business flows – due largely to the success of Jersey’s market access model,including private placement into Europe and seamless global access into other geographies.

“Of course, the coronavirus pandemic remains front and centre of minds at the moment too, but Jersey has shown real resilience, flexed its digital muscle and introduced measures such as enhanced digital filing and electronic powers of attorney, as well as guidelines on meetings during the pandemic to help keep business flowing in difficult times. In fact, with 100% of homes and businesses in Jersey connected to a pure fibre gigabit-speed network which is the fastest of any jurisdiction in Europe, Jersey’s connectivity has supported high service levels and has helped launch some notable funds during the course of lockdown.”

Looking to the future, Tim highlighted that Jersey’s strengths in alternatives would position it ideally against global market trends, with PwC forecasting growth of almost 9% across the asset classes over the coming five years*. He said:

“Our core strengths as an alternative funds centre, particularly across private equity, real estate,infrastructure and credit funds remain the same – our stability, experience, expertise,service levels, cost-effectiveness, legal framework, tax transparency and regulatory standards. However, competition from other centres remains strong and the regulatory environment remains highly complex, so we need to keep innovating and adapting to meet the needs of alternative fund managers.

“To that end, we are focused on enhancing our range of structuring options, and we are focused on promoting our capabilities in the ESG space. We’re also anticipating a rise in co-investment and fund finance activity, a resurgence in the use of Jersey property unit trusts to facilitate investment into the real estate market, and opportunities in outsourced work as managers look for specific support expertise such as governance and compliance, areas where Jersey excels.”

*PwC Market ResearchCentre

The number of alternative fund managers choosing to market their funds into the EU though Jersey using national private placement regimes (NPPR) continued to grow in the second half of 2019, according to the latest figures from Jersey's financial services regulator.

Data from the Jersey Financial Services Commission (JFSC) shows that, as at 31 December 2019, there were 183 Jersey-registered managers opting to market into the EU through NPPR, a figure that has risen 6% since June 2019 and by 9% year-on-year.

Meanwhile, the total number of Jersey alternative funds being marketed into the EU through NPPR also increased to stand at 320, representing a 3% increase since June 2019 and an annual rise of 2%.

 Commenting on the figures, Joe Moynihan, CEO, Jersey Finance, said:

“Reflecting the period in the immediate run-up to the UK’s formal exit from the EU, these are really positive figures reinforcing just how attractive the private placement route to market is for non-EU managers wanting to access EU investor capital. We’ve seen a sustained and consistent rise in the number of alternative managers and funds making use of private placement through Jersey over the past few years. It is a tried and tested route that provides certainty and flexibility and that is cost-effective, and those qualities are hugely attractive – particularly in the current challenging market.”

The figures follow shortly after the publication of the latest quarterly statistics for Jersey’s funds industry. They showed that the total net asset value of regulated funds under administration in Jersey grew by 8% over 2019 to stand at £345.7bn, a new record high, with private equity and venture capital driving growth, increasing by 19% over the year.

 Tim Morgan, Chair, Jersey Funds Association, added:

"Our alternatives sector continued to perform extremely strongly in 2019, reflecting the ideal ecosystem we have created in Jersey, and our market access and distribution capabilities are very much a part of that. The fact that we’ve seen a growing number of private equity, venture capital, real estate,infrastructure and debt funds opt for a private placement route to market through Jersey is testament to just how well it works. We expect this figure to continue to rise as managers look for robust and straightforward solutions to help navigate the complex and uncertain global environment we all now find ourselves in.”

The findings of the second annual survey of the Jersey Funds Association’s (JFA) members will be instrumental in informing the organisation’s future direction and strategy, according to Chair Tim Morgan.

Highlighted to an audience of industry professionals at a presentation held at the Jersey Museum last week (28th November), the survey explored key opportunities and issues for Jersey’s funds industry and the sentiment of practitioners.

Amongst its key findings were that the industry’s approach to Brexit and new economic substance rules were balanced but largely positive, with over 80% saying Brexit would be neutral or increase business and around three quarters saying the same about substance rules.

Members were also very positive in terms of their growth outlook, with 84% saying they were confident or very confident of growth, a significant increase from last year.

In addition, in respect of technology the survey indicated a clear trend, with over 56% of respondents saying that they had employed automation technology over the past year.

Tim commented: “The past year has posed a number of significant challenges, including Brexit and the introduction of substance legislation however we really shouldn’t underestimate just how positive the outcome of Jersey's work around these issues has been for our industry. The recognition from the EU at the beginning of the year has shown without doubt that as a jurisdiction we are serious about cooperation and global standards, and that has translated into good business flows. The fact that our industry now administers in excess of £340bn of assets – a record high - is no accident. That buoyancy really comes through in our survey this year.

“We are pragmatic as an industry too, though. What our survey shows us is that our members are keen to maintain a growth trajectory by looking at innovation, continuing to source the best talent, engaging with stakeholders, and differentiating ourselves through service quality, ease of doing business and stability.

“These findings will be vital in informing how we continue to enhance our funds ecosystem, and I’d like to thank our membership for their time and support in putting their views forward.”

Further positive figures about the size of the funds industry in Jersey were unveiled at Jersey Finance’s London showcase conference for the funds sector last week.

Elliot Refson, Business Development Director - Funds at Jersey Finance, said that the number of Jersey Private Funds (JPF) had increased 25% in six months, highlighting the success of Jersey’s government, regulator and industry working together to create the best possible environment for attracting innovative, quality funds business.

Figures from the Jersey Financial Services Commission (JFSC) showed that the number of JPFs, a structure introduced in 2017 to cater specifically for the needs of small groups of sophisticated investors, had reached 257 by 30 June 2019, up from 205 at the end of 2018, with assets under management of £43 billion.

Joe Moynihan, CEO of Jersey Finance, described Jersey as positioned perfectly to act as a quality filter to manage international financial flows: “As investors look for stable IFCs that offer specialist expertise, Jersey can be a voice of reason among the noise, ready to support investor ambitions.”

Furthermore, irrespective of the outcome of Brexit, Jersey was able to bridge the gap between the UK and Europe thanks to the bilateral agreements that were in place with the EU alongside its long standing relationship with the UK, boosted by a recently signed Memorandum of Understanding between the JFSC and the UK Financial Conduct Authority which gave fund managers added certainty around accessing UK investor capital through Jersey in the build up to Brexit.

Entitled ‘Beyond Boundaries’, the annual Jersey Finance funds conference 2019 (on September 10) attracted more than 350 delegates and a range of industry leading speakers and panellists who discussed the impact of regulation and governance, the trends in the alternative funds sector, and further examples of innovation and trailblazing by fund managers, lawyers and administrators who were using Jersey for their fund structuring.

The event was also an opportunity to flag up how Jersey had become a clear choice for socially responsible investing (SRI) and especially impact investing, with Mr Moynihan noting that there were already more than 30 SRI funds under administration in Jersey with assets valued at US$7.4 billion.

He also highlighted Jersey’s increasing global footprint pointing to the fact that Jersey became the first IFC to be permitted to open an office in the Dubai International Finance Centre last year. Further, next month, Jersey will formally open its first office in New York, partly to support the growing demands from US promoters choosing Jersey evidenced by US promoter assets under administration in Jersey increasing by 148% over the past five years.**

Meanwhile, the Island’s rapid investment in technology – it is the first place in the world to have full fibre telecom networking delivering speeds of 1 Gbps (gigabits per second) – had positioned the jurisdiction at the forefront of fintech investment fund services.

The conference, at the Royal Lancaster Hotel, included keynote addresses from Todd Buchholz, former Director of Economic Policy at the White House and current managing director of the US$15 billion Tiger hedge fund, and Dan Snow, BAFTA award-winning broadcaster and popular figure on BBC television presenting historical topics.

A total 18 industry experts from London and Jersey contributed to four breakout sessions which were entitled ‘New Alternatives’ moderated by Alice Murray, founding editor of The Drawdown; ‘Solutions for Fund Managers – Governance, Substance and Location’, with moderator Tim Morgan, Partner, Mourant and Chairman of the Jersey Funds Association; ‘Building Global Bridges’ moderated by Nicholas Neveling, editor, Real Deals; and ‘The Evolution of Real Estate’ with moderator Sophie Reguengo, Partner, Ogier.*

They debated factors affecting the alternatives market, pinpointing the strengths of the Jersey offering, drawing on the use of case studies outlined by managers, while also examining how the funds sector was responding to the technical and regulatory challenges it faced and Jersey’s role in providing solutions.

Summing up the Jersey offering, Joe Moynihan added: “Having one of the largest communities of finance industry and legal specialists of any IFC, combined with our speed to market, adoption of the latest standards in transparency, our tax neutral status and mature environment for funds business and with increasing numbers of local firms and advisers operating across multiple jurisdictions, we have all the hallmarks to remain the jurisdiction of choice.”

Recent political manoeuvring in Westminster has done little to resolve the feeling of uncertainty amongst private equity, real estate, infrastructure and other alternative fund managers around the long-term solution to capital raising within the EU.

It won’t be until mid-March now – just weeks before the UK’s expected departure from the UK – that we will have a better idea as to whether the UK is looking at a cliff-edge no deal exit, whether a new deal will be given the green light, or whether the agony will be prolonged by extending Article 50.

Yes, there may be transitional measures in place for fund managers between the UK and European regulators for now, but it’s hardly a satisfactory long-term answer for UK managers looking to access EU investor capital. And with 90% of alternative managers in Europe being in either the UK or Switzerland, that’s a lot of non-EU managers looking for a better solution.

The good news is Jersey continues to play a vital role in supporting managers looking to market vehicles in all or parts of continental Europe, regardless of the outcome of Brexit – deal, no deal or deadline extension.

We’re continuing to see private placement as a very viable and attractive option for managers, with figures announced recently indicating that the number of AIFs marketing into the EU this way through Jersey grew by 8% over 2018, whilst the number of managers doing so rose by 13%. That’s a real demonstration of faith in Jersey’s model.

You can see how private placement is being used in practice here - across all asset classes and fund sizes.

There’s good reason for this confidence. Jersey is already a third country in relation to the EU, with all relevant agreements in place to support private placement across Europe. That means Jersey can continue to operate seamlessly irrespective of the outcome of Brexit.

Doing so is also more targeted – EU figures show that only 3% of managers in Europe actually blanket market to more than three EU countries. In 97% of cases, it makes much more sense to opt for a private placement solution.

In addition, the set-up process for managers is a lot quicker than onshore solutions and a lot more efficient and cost-effective, whether that’s relocating fully or partially to Jersey through, for instance, a Jersey ManCo structure.

There’s long-term security for managers too - changes to the private placement regime are unlikely, but if they do happen, private placement will still be in place for three years from that date, by which time Jersey will have access to the AIFMD passport in any case.

It’s a pretty compelling proposition for UK, and other non-EU managers, looking to market into the EU, and the industry agrees – according to current figures, the value of funds administered in Jersey broke through the £300bn mark in 2018 to reach the highest ever level – any perceived uncertainty around Brexit certainly hasn’t hampered the growth of Jersey’s funds sector.

The message is clear – whatever happens at the end of March, Jersey is ready to play a key role in enabling managers to continue to market their funds to and generate returns for EU investors. No problem.

#JerseyForFunds

Jersey’s funds industry continued to see a rise in the number of alternative fund managers choosing to market their funds through national private placement regimes (NPPR) in the second half of 2018, according to the latest figures from Jersey’s financial regulator.

Data from the Jersey Financial Services Commission (JFSC) shows that the number of Jersey-registered managers opting to market into the EU through NPPR rose 4% between July and December 2018, and by 13% compared to December 2017, to stand at 168.

Meanwhile, the total number of Jersey alternative funds being marketed into the EU through NPPR also increased to stand at 314, representing a 3% increase since June 2018 and an 8% rise year-on-year.

Commenting on the figures, Joe Moynihan said:

“We are now just weeks away from the UK’s departure from the EU and the clear evidence is that alternative managers are putting their faith in Jersey and opting for a regime that offers them market access certainty and a welcome degree of flexibility, thereby enabling them to get on with generating returns for investors.

“These are strong figures for the second half of 2018 that sustain a growth trajectory we have been seeing for some time now as we continue to work with the UK and other non-EU managers to provide them with future certainty.”

Meanwhile, the latest figures follow a masterclass event recently held in London by Jersey Finance in conjunction with the Jersey Funds Association, which focussed on market access and fund distribution post-Brexit.

Attended by around 100 London funds professionals, including lawyers, tax advisers and managers from across the alternatives spectrum, the event featured an expert panel that included Adam Skinner, Partner at Kirkland & Ellis International, Tom Powell, Principal at Alnitak Advisors, Andrew Brizzell, General Counsel at Asante Partners, Robert Milner, Partner at Carey Olsen, and Mike Jones, Director of Policy at the Jersey Financial Services Commission.

Elliot Refson, who hosted the masterclass, said:

“This event provided a fantastic platform to have a robust discussion about the future of fund distribution and take an in-depth look at the benefits of the private placement route to market.

“The reality is that few managers need blanket access to all EU Member States. In cases where they do, then an onshore option works best, but with EU figures* suggesting that 97% of managers actually market to three EU markets or less, then private placement offers a very credible, fast, cost-effective and sensible option. That’s our message to the alternative fund management community and it is clearly resonating.”

#JerseyForFunds