Jersey’s finance industry has reported “robust growth” across its funds, banking and corporate sectors over the first six months of 2024, despite a persistent high-interest rate environment and volatile global market conditions.
According to the most recent quarterly figures to be collated by the Jersey Financial Services Commission (JFSC) for the period ending 30 June 2024, the total value of deposits held in Jersey banks increased to stand at £159.5bn, an increase of 2% over the past six months and 7% year-on-year. 63% of those deposits are held by Jersey-based banking organisations in foreign currencies.
Meanwhile, within Jersey’s funds sector, the total net asset value (NAV) of regulated funds business administered in Jersey rose by 1% over the first half of the year and by 4% annually to stand at £457.6bn. With 88% of that total in alternative asset classes, private equity and venture capital performed particularly well, growing an impressive 21% year-on-year.
In addition, there are now 699 registered Jersey Private Funds (JPFs) – Jersey’s regime for sophisticated investors – with total assets under management (AUM) of £86.7bn. More than 40% of that total is private equity and venture capital. This is in addition to the regulated funds NAV.
Corporate activity also remained positive over the first half of 2024, with the rate of incorporation over the last six months up 1% on the same time in 2023 and a total of 35,439 companies now on Jersey’s register – the highest total on record since September 2022.
Jersey Finance CEO, Joe Moynihan (pictured), said: “The backdrop to the first half of this year has certainly been challenging for cross-border financial services, with geopolitics creating significant market instability and central banks continuing to put downward pressure on asset prices and deal flows. To be able to report such robust growth across Jersey’s finance industry at the mid-year point is therefore incredibly pleasing.
“That we have seen incredibly strong performance in our private equity proposition and sustained appeal of our JPF product should send a powerful message to the global investor community. Jersey also continues to attract significant private wealth and family office business, whilst the positive corporate activity we have witnessed provides a good indication of our transactional pipeline, backed by a highly resilient banking sector.
“All this is testament to the hard work of the industry, government and regulator that continues to go into creating a stable, innovative and attractive ecosystem for investors, families, private clients, fund managers and businesses. This is all backed up by our market diversification strategy, which aims to provide our industry with greater resilience in the face of geopolitical challenges. As market conditions improve over the coming months, Jersey is in a very good position to maintain this upward trend.”
