Growth in funds domiciled in Ireland

THE NUMBER of Irish domiciled non-Ucits funds grew 4.3 per cent in the first quarter of 2012, the Irish Funds Industry Association (IFIA) said yesterday.

The figures come as the industry prepares for the implementation of new EU-wide legislation related to the Alternative Investment Fund Managers Directive (AIFMD). Alternative investment funds, which are separate to Ucits funds, refer mainly to hedge funds and private equity funds. Most non-Ucit funds use the qualifying investor fund structure.

Ireland is a major centre for both retail Ucit funds and alternative investment funds. Last month the total assets under administration in Ireland passed the €2 trillion mark.

Assets in domiciled non-Ucits funds in Ireland have been increasing over the past years and now stand at around €250 billion.

Ireland administers about 40 per cent of the world’s alternative investment funds.

According to the IFIA, Ireland is positioned to capitalise on the imminent regulatory AIFMD changes, as many of the proposed changes are already in place in Ireland.

“The Irish funds industry is AIFMD ready . . . with many of the key AIFMD provisions already a standard part of the requirement for the qualifying investor fund,” Pat Lardner, chief executive of the IFIA said yesterday.

“Being the leading service centre for alternative investment managers both within the EU and globally, Ireland has unparalleled experience in administering alternative investment funds,” he added.

The fact that US fund managers in particular are increasingly looking onshore and to Europe to locate their funds, is also expected to benefit Ireland.