Ireland has grown in popularity as the international fund centre of choice, with increased distribution capabilities and expertise in regulated products, according to the latest industry i
Ireland has grown in popularity as the international fund centre of choice, with increased distribution capabilities and expertise in regulated products, according to the latest industry information provided by Kinetic Partners in a seminar they held in New York this week.
Kinetic Partners, which provides professional services to the global asset management, provided an overview of the Ireland fund industry, its products and leadership as a commercially aware jurisdiction.
More than 340 asset management companies have chosen Ireland as a domicile for nearly 4,000 regulated investment funds to broaden distribution channels and alternative product choices with increased product oversight and flexibility.
Speakers discussed the current market environment as one exerting tremendous regulatory and fiscal pressures on authorities and investors alike. US and European Union agencies are targeting less-regulated offshore centres and tax havens, causing many funds to seek service providers that can provide the correct controls, procedures and policies and training solutions required.
Also contributing to the growth of the Irish fund center is the trend from both institutional and retail investors moving assets to conservative but commercially aware jurisdictions such as Ireland, which offer a range of flexible fund structures.
‘Market turmoil has led to a flight to safety of the more regulated jurisdictions,’ said John Hamrock, a member of Kinetic’s regulatory consulting practice. ‘This means that funds need administrative support that provides robust oversight, industry ruling for best practices, and quality service from blue chip providers – all of which are key areas that the Irish fund center emphasizes.’
The tumultuous markets of 2008 left a lasting impact that will reverberate among the funds industry, its service providers, and investors for a long time. Issues of structuring, valuation, counterparty risk management and administration continue to impact how fund managers develop, offer and manage their products.
Gary Palmer, chief executive officer of the IFIA (Irish Funds Industry Association) said: ‘2009 will be the year of the regulated investment product. In particular, new fund start ups are feeling increasing pressure from investors seeking more risk adverse products and regulated jurisdictions. We understand these funds need a partner who provides the best solutions for transparent fund structures and multiple liquidity options together with cost efficiencies and technology.’
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