Jersey’s funds industry has climbed to record heights in 2020, with the net asset value of regulated funds under administration totaling £378.1 billion.

According to the latest quarterly statistics, the value of regulated funds business serviced in the jurisdiction growing by nine percent over the year, increasing by £32.4 billion.

This upsurge reflects a period of sustained growth for Jersey’s funds industry, with the figure at the end of 2020 rising by more than two thirds (67 percent) over the last five years.

In particular, the alternative asset classes, which represents 89 percent of total funds business in Jersey, continued to prove the engine room of growth, with private equity and venture capital up by 21 percent year-on-year to £164.6bn.

In addition, the number of registered Jersey private funds grew by almost 100 over the year to reach a total of 403.

Corporate activity was also very strong in 2020, with a record level of company incorporations in the fourth quarter of the year. The total number of live companies on the register soared to 33,626, the second highest level in a decade

Elsewhere, figures also reveal that deposits held in Jersey banking institutions at the end of 2020 stood at £131.7 billion, down eight percent year-on-year, a reduction that was heavily influenced by currency movements and global market volatility, with 56 percent of deposits in Jersey held in foreign currencies.

Commenting on the figures, Jersey Finance chief executive officer, Joe Moynihan, said: “Against the backdrop of a really challenging year for global markets, this is a positive picture for our industry, and for our funds sector in particular which has again achieved stellar growth to reach new record levels. The resilience and stability Jersey has shown has clearly resonated amongst investors and managers, as they have continued to put their faith in Jersey as a specialist high quality centre for alternative funds. Despite currency movements impacting overall bank deposits, material deposit levels have stayed largely stable and consistent over recent years, while the positive corporate activity we saw in 2020 is a reflection of the health of the industry and our role in supporting cross-border activity.

Tim Morgan, chair of the Jersey Funds Association, added: “Jersey continues to work tirelessly to create the ideal ecosystem for alternative funds, and these latest figures provide welcome evidence of the appeal Jersey continues to have, in particular in the private equity, venture capital and alternative space, with a number of big-ticket funds coming to market through Jersey over the past twelve months. The fact that almost 100 new Jersey Private Funds have been registered over the year is also hugely positive, underlining both the appeal of the JPF as the go-to vehicle for professional investors but also Jersey’s ability more widely to innovate in the right areas.”