Irish-domiciled funds up 40% to top €1tn for first time

IRISH-domiciled funds have exceeded €1 trillion for the first time, an increase of 40% on assets held here in 2009.

The Central Bank of Ireland reported that the value of these funds reached an all-high time of €1,008 billion as at the end of November 2011, up 40% from €711bn two years previously.

Irish Funds Industry Association chief executive Gary Palmer said that reaching this milestone is a testament to the excellence of the Irish funds industry.

“Ireland has gained great experience in the administration of internationally distributed investment funds,” said Mr Palmer. “This is excellent news, and the fact that Irish-domiciled assets have reached an all-time high is truly testament to the excellence, innovation and reach the jurisdiction provides.”

Irish funds recorded the highest level of net inflows in Europe in the first half of the year, with net inflows of €39bn in the first six months of 2011 — €7bn more than the next closest domicile.

European agency EFAMA also noted that Ireland’s UCITS market share has increased to 13% from 11.5% at the beginning of 2011. Fund managers are also looking to Ireland on the alternative fund side, with soaring interest in Irish qualifying investor fund services.

The figures from the Central Bank also show that the number of funds has reached an all-time high of 1,355, with assets also reaching €173bn in November. Ireland, which already administers nearly 40% of the world’s alternative investments, has seen qualifying investor fund assets grow in excess of 20% in the last 12 months.

Ken Owens, chairperson of the Irish Funds Industry Association, said: “This record success for Ireland in terms of both alternative investments and UCITS demonstrates that Ireland is the fund managers’ domicile of choice,providing solutions to all aspects of the funds industry.”