Ireland trades on regulated fund structure in US visit
Internal governance rules and new regulations such as AIFMD and Dodd Frank will precipitate a move to regulated structure, an Irish funds industry trade mission to the US will argue this week
The mission visiting Boston and New York – and headed by John Bruton, former Irish prime minister and president of IFSC Ireland – is the latest proof that competition between jurisdictions has grown in the wake of the financial crisis.
Ken Owens, trade mission delegate and chairperson of the IFIA, said: “What is very clear is that funds selling to European institutional investors are increasingly required to offer regulated structures for two key reasons: to meet investors’ internal governance rules which require investment only into regulated structures and/or listed products; and because of new regulations such AIFMD in Europe and Dodd Frank in the US, which will likely precipitate a move to regulated structures. Because of these developments, we are going to see much greater use of regulated structures – and in particular the various Irish fund models that are currently available.”
Ireland which services around 40% of the world’s hedge funds by assets, has been highly successful in attracting Ucits investment. In 2011 Ireland attracted around €62bn into Ucits, almost €50bn more than the UK, the next most successful domicile, and nearly twice as much as all the other jurisdictions put together.
Over the past 11 years the net assets of Irish Ucits have grown more than 500%. Irish domiciled investment funds have reached a record high, passing the €1trn mark for the first time – up some 40% from the end of 2009. Irish authorised Ucits account for almost 80% of the assets of all Irish domiciled funds.