A&L Goodbody remains the leading Irish legal adviser to the Irish funds industry, representing domiciled and non-domiciled funds with a combined asset value in excess of USD238bn, according to the Lipper Ireland Fund Encyclopaedia 2010/2011.
The Lipper report shows that the total combined size of the Irish funds industry at the end of June 2010 was in excess of USD1.1trn US dollars with 3,816 separate domiciled and non-domiciled funds being serviced in Ireland.
Brian McDermott, head of investment funds at A&L Goodbody, expects the industry to continue growing on the basis that Ireland remains a very attractive location for international funds.
“Recent changes to fund regulations in Ireland have sparked a marked increase in product development and fuelled the interest of hedge fund managers in establishing both Ucits and qualifying investor funds in Ireland.”
McDermott claims that recent changes to the naming conventions for funds structured as umbrella funds will be particularly welcomed by hedge fund managers looking to establish "Newcits" funds that elect to use a third party’s Ucits platform rather than establishing their own dedicated vehicle.
“The ability to brand a sub-fund with their own name should greatly facilitate the separate marketing and distribution of that sub-fund by such managers. This facility should also make it quicker and easier for such managers to bring a product to market,” says McDermott.
McDermott says that the ability for funds managers to move existing overseas funds to Ireland under Ireland’s investment company redomiciliation legislation should create further opportunities for the Irish funds industry.
“Redomiciliation to Ireland is being considered by clients because Ireland is a soundly regulated EU jurisdiction with an English speaking workforce, a favourable tax regime and tax treaty network, experienced and professional service providers and a pragmatic and commercial regulator,” he says.
McDermott also highlights the recent changes made to the Irish Qualifying Investor Funds regime by the Irish Central Bank as being positive for the industry and would enhance the appeal of this product to fund promoters/managers.
He says there is significant product development taking place in the Irish funds market.
“This product development focuses on both regulated and unregulated vehicles and demonstrates the attractiveness of Ireland as a funds domicile for international fund operations."