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Locate Jersey blog: Why funds businesses are moving to Jersey

Date
24 March 2017

Locate Jersey’s Paul Burrows reflects on this week’s Jersey Finance London Funds Conference and the jurisdictions’ appeal for fund managers;

"The annual Jersey Finance London Funds Conference, ‘New Perspectives’, took place in London this week. Attended by around 300 fund managers, lawyers, advisers and investors, it was fantastic to hear how well the Island’s funds industry is performing, particularly as we head into a new Brexit era.

In fact, it was encouraging to hear the line-up of UK and local speakers and panelists talk so candidly about how well positioned they thought Jersey was in light of the changing geopolitical landscape, how Jersey is taking Brexit in its stride and seeing it as a fresh opportunity, and how it is innovating its regime in order to remain an attractive location for fund managers.

Overall, the key message from this year’s speakers was that Jersey is and will remain a buoyant alternative funds centre. Figures from the Jersey Financial Services Commission, for instance, show that the net asset value of regulated funds being administered in Jersey last year peaked at £237.3bn (September 2016), the highest level since 2008. The most recent Monterey Insight report (30 June 2016) showed that private equity continues to be Jersey’s largest industry sub-sector (40% of total net asset value), followed by real estate (25%).

As a result of this success, it’s no real surprise that fund managers are increasingly favouring Jersey as a base for their business; it was highlighted at the Conference that there is a rapidly growing community of fund managers in Jersey, including now 126 fund management entities, representing a 113% increase over the last five years, and Jersey has become the sixth largest hedge fund management hub globally. That’s all pretty impressive, and tallies with the spike in interest in relocation to Jersey we are seeing at Locate Jersey amongst fund managers.

For fund managers who want to work in an IFC of the highest calibre, just a short flight away from London, and which has a pool of highly qualified local staff and service providers, Jersey is an ideal choice of jurisdiction. It has a straightforward tax regime and a broad selection of fund distribution options, allowing easy access to investors in Europe and further afield.

Whilst relocating to Jersey as a fund manager is undoubtedly a positive move from a business perspective, a growing number have also moved themselves and their families to the Island and not looked back since. Together with its strong sense of community, Jersey offers a high standard of education and a quality healthcare system, meaning that it is an ideal location for families, and unlike some places, the school run - or work commute - often only takes a matter of minutes. Living in Jersey also offers the perfect outdoor lifestyle and extensive leisure and sporting facilities, whether it’s surfing, enjoying scenic coastal walks, or playing a round of golf on one of the three Championship courses.

We continue to see sustained interest from fund managers in Jersey, and it was extremely encouraging to hear on a major London platform this week that experts consider the Jersey proposition so attractive."

For more information on relocating you and/or your business to Jersey please contact Locate Jersey at locatejersey@gov.je / +44 (0)1534 440604