The emerging markets are proving to be a major source of new business for the Jersey funds industry, and the island should be promoting itself as much as possible in these markets, an industry official said.
Peter Hart, managing director of Standard Bank Fund Administration Jersey Limited, was commenting following further success for the bank’s fund administration business, which has passed the $10 billion milestone for assets under management. The figure has doubled in just over 12 months.
“We are seeing considerable amounts of repeat business from institutional clients, but no one alternative fund sector has dominated,” he said. “Particularly encouraging, however, is the amount of work originating from the emerging markets of the Gulf and Russia.”
The bank witnessed growth of more than 40 percent during 2005 and 2006, but even that significant growth figure has been surpassed during the past year.
Hart said the increased assets were from a range of fund schemes and not from one major fund launch, which he considered an indication that business was developing consistently. He added there was also substantial additional funds business in the pipeline, including a number of new property funds investing into certain emerging markets, such as China.
“Jersey has been sending delegations to the Gulf region regularly and with great success,” he said. “In more recent times, the island has focused also on the Far East, particularly Hong Kong and China. In my view, we should channel further time and resources into these markets, because the economic conditions in these regions are right, and the potential to win business and boost our economy is immense. Equally, the competition from other jurisdictions can only increase.”