Offshore Funds

Despite being affected by the same adverse exchange-rate movements, the total value of funds still rose by £1.5 billion - from £57.2 billion to £58.7 billion. The trend towards more sophisticated funds aimed at high net-worth individuals also continues.

Jersey is home to some of the biggest names in fund management, including Gartmore, Perpetual, Barclays, Foreign & Colonial and Newton, so it’s not hard to see why business is booming. In total there are 49 organisations carrying out fund management in Jersey. The fact that these asset managers are offering such a wide service has also been a key factor in their success over 1999.

Offshore Funds & Trevor Falle

Ashburton’s emphasis is on conservative funds and portfolios - a market which has grown considerably. It aims its products at investors looking for core investment strategies. Alistair Torvaney at Perpetual regards conservative products as a growing part of the Jersey market. He says: “Our three year-old Sterling Bond fund is still relatively small but we are beginning to promote it more aggressively. More bond funds will become a feature of the market next year.”

Offshore Funds - Jersey

Offshore Funds & Nigel Parker

Nigel Parker of Gartmore and the Jersey Fund Managers Association says: “There has been a noticeable diversification in the services available on the island. Only a few years ago fund managers were very focused on simple retail products such as offshore gilt funds, equity funds and umbrella funds. Now there is a huge spread across the board from institutional investments to retail funds - but with a sharp move away from the traditional retail fund.”
Perpetual says that only 10 per cent of its business is now retail. Most trade is to life companies and banks that are increasingly providing one-stop shops for investment products. Parker also attributes this shift to a change in investor expectation and demand. A move away from strictly performance-based funds has left room for more subtle investment products. Changes in pension provision and medical care has given investors a longer-term view of their financial planning. As a result, Jersey is boasting a much more solidly-based fund industry, according to Parker.