Jersey Finance and the Jersey Funds Association say that the jurisdiction is doing well under the AIFMD regime, contrary to suggestions in a report published recently by the Association of the Luxembourg Fund Industry, Alfi.
Geoff Cook (pictured) CEO of Jersey Finance, said that Alfi’s report was based on data for the period 2010-13, leading up to AIFMD, and on estimates of consultant mandates.
“In fact, official figures since the AIFMD was implemented in July 2013 tell a very different story to that put forward by Alfi,” Cook said.
“As far as new fund launches are concerned, the independent Monterey Insight Fund Report for 2014 confirmed that 171 new funds were launched in Jersey in the period from June 2013 to June 2014, compared to 78 in the same period from June 2012 to June 2013 – more than a 100% increase in the period since AIFMD was implemented. The total value of funds being administered and managed in Jersey has also grown by around 5% year-on-year to stand above the £205bn mark as at September 2014, according to the official statistics of the Jersey Financial Services Commission. The Commission’s data also shows the specific value of private equity business has almost doubled over the past five years, whilst Europe’s largest private equity fund raised in recent years enjoyed its final $10bn closing from a Jersey management platform. Real estate funds business has risen considerably and consistently too, and by around 50% over the last five years.”
Ben Robins, chairman of the Jersey Funds Association, said: “Recent statistics also indicate a strong take-up in Jersey’s private placement route into Europe since July 2014.”
“176 Jersey funds and 49 Jersey fund managers are already actively marketing into the EU with authorisation from Jersey’s regulator under private placement regimes, and undoubtedly the trend evidenced across managers in Jersey this year has been one of building significant future management substance. The recent arrival of BlueCrest in Jersey underscores the jurisdiction’s continuing appeal to blue chip promoters.”
“These facts and figures evidence the positive impact of AIFMD in Jersey, where the operation of EU private placement, our readiness for third country passporting equivalence and our ability to operate outside the AIFMD environment where there is no EU marketing points to something more significant than ‘business as usual’. The statistics demonstrate steady growth and suggest the successful, tried and tested Jersey model will continue to support discerning and successful managers and investors into the future.”
Alfi published a report prepared by Oliver Wyman recently, which looked at domiciles of alternative investment funds.
The report makes reference to estimates by Oliver Wyman as to the rate of growth in the number of alternative investment funds in 2010-13. The estimates suggest a drop of 12% in the number relevant to Channel Islands jurisdictions.