The Republic's full-service fund managers need to revamp their business models thoroughly if they are to meet the needs of "modern" clients, according to the new managing director of Hibernian Investment Managers (HIM), Mr Martin Nolan.

Speaking as HIM emerges from a review that could have led to its closure, Mr Nolan predicted that the full-service fund managers who remain in the Irish market are facing a similar period of change.

"They're reaching the point we've just passed through," he said, arguing that the traditional model, whereby clients award all of their investment mandates to one manager, "does not reflect the modern reality".

Mr Nolan believes customers are beginning to seek out managers that differentiate themselves in particular asset types, and are allocating their cash accordingly.

In this light, he said the new-look HIM would not seek to be "all things to all men", specialising instead in a handful of areas including euro-zone bonds and Irish equities.

It will also be designing a range of retail products for sale through Hibernian Life and Pensions that reflect the low-inflation environment.

The company is in the process of trimming its headcount from 48 to 24, with most of those who remain with the firm holding positions that entail direct involvement with customers.

The Hibernian group decided to retain the HIM operation in Dublin last month but said it would transfer the company's international equity management and back-office functions to its London-based sister company, Morley Asset Management.

The move, which stemmed from an earlier decision to seek IT efficiency across the group, left HIM with direct control over some €5.8 billion in assets and responsibility for asset allocation on a further €1.45 billion.

Mr Nolan said the company was now in a position to "get out there" and grow after several months of uncertainty.