Third quarter data from Jersey’s finance industry indicates that the value of funds business on the island is at its highest level for five years.

The net asset value (NAV) of regulated funds increased by £5bn in the third quarter and by 5.5% year-on-year to reach just over £205bn, the highest figure since March 2009. The total number of regulated funds rose by 21 during the quarter.

Private equity and real estate funds both grew by more than 4% from the previous quarter, while real estate was up by one third year-on-year.

The total number of regulated collective investment funds increased by from 1,283 to 1,304. At end of the third quarter of 2014 there were 204 unregulated funds, of which 133 were active. The total number of consents granted in respect of COBO only private placement funds increased by 3 to 30 with a reported total NAV of £696m.

Geoff Cook, chief executive Jersey Finance said, “The private placement route into the EU remains a very attractive option for fund managers based outside the EU. Esma recently issued a consultation paper on whether the AIFM passport should be extended to third countries, which Jersey Finance is coordinating a response to together with the Jersey Funds Association.”

Ben Robins, chairman Jersey Funds Association said, “The fact that there is a strong upward trend across Jersey’s funds industry in the period since the AIFM directive was implemented is very pleasing, both in terms of fund launches and in the value of funds business.”