Irish Funds, the representative body for the cross-border investment funds industry in Ireland, has seen significant inflows of EUR8.4 billion into Ireland through the Irish Collective Asset Management Vehicle (ICAV).
Since the ICAV legislation was passed into law in March 2015, over 157 new funds have registered through the bespoke fund vehicle (as of March end 2016). Cumulatively, these funds equate to over EUR8.4 billion in AUM, and Ireland has seen positive net inflows every month since the ICAV’s establishment. The majority of these new funds have been Alternative Investment Funds (AIFs).
The ICAV was designed to improve efficiency and accessibility for new Irish investment funds, and now sits alongside the public limited company (plc), as a tailor-made corporate fund vehicle for both UCITS and Alternative Investment Funds (AIFs).
The ICAV offers an alternative form of corporate vehicle for funds with the primary purpose is to minimise the administrative complexity and cost of establishing and maintaining collective investment schemes in Ireland.
Commenting on today’s announcement, Pat Lardner (pictured), CEO at Irish Funds, says: “The ICAV was a hugely positive development for the Irish funds industry, and these figures only reinforce the success of this legislation. We’ve seen real appetite from fund managers on a global scale, and we certainly expect this to continue in the coming months and years. The vehicle itself improves access for fund managers looking to domicile in a regulated onshore jurisdiction, particularly through AIFs and UCITs.”
The legislation was drafted with the specific needs of investment funds in mind, and has the advantage that it is not impacted by amendments to certain pieces of company legislation that are targeted at trading companies. This also includes a mechanism for non-Irish investment companies to migrate into Ireland and become an ICAV as part of a single process.
Notable managers to have registered funds through the vehicle in Ireland include UBS Hedge Funds Solutions, and Permal Group, a leading US Investment Manager.