The quarterly statistics published by the Jersey Financial Services Commission reports the total number of funds in Jersey currently at 658, with a total net asset value of £487.5 billion. Between 2021-2022 assets under management grew by £6.5 billion and the number of JPFs launched in Jersey is steadily increasing by roughly 100 per annum. Jersey Finance reports 586 JPFs on the Island, as at 30 September 2022.
An attractive solution when it comes to establishing a fund, Jersey’s JPF regime has proven to be popular due to their flexibility and proportionate approach to regulation, allowing up to 50 offers to professional investors who must acknowledge in writing the acceptance of investment warnings. There is no obligation for a JPF to have a private placement or offering memorandum , or to be audited. JPF structures are frequently used by fund managers, family offices and real estate investors .
JPFs can be open or closed-ended and can use various types of investment vehicle such as a company, limited partnership, protected or incorporated cell company. Jersey’s tax neutrality offers a highly attractive solution as Jersey funds do not pay income tax in Jersey. Rather, investors pay taxes where they are domiciled and there is no double taxation of funds or investors on the Island. Jersey is also a politically stable jurisdiction with a vigorous regulatory scheme.
To demonstrate the JPF’s streamlined fast-track regulatory authorisation process, Oakbridge has recently established a GP/LP JPF structure from set up to JPF consent, including having bank accounts open, within 10 business days.
We are seeing interest in JPFs from global Managers and the structure has been particularly popular with Singapore based investors. The breadth of interest further demonstrates Jersey’s international reputation.