ICAV Attracts 157 New Funds, €8.4B to Irish Funds in First Year

Jun 9 2016 | 9:10pm ET

The Irish Collective Asset Management Vehicle, or ICAV, has seen inflows of €8.4 billion across 157 new funds registered in the 14 months since the legislation creating it was passed into law. 

The ICAV structure was implemented in order to improve access to alternative funds domiciled in Ireland. By providing an alternative form of corporate vehicle for funds, the structure minimizes administrative complexity and costs related to the establishment and maintenance of collective investment schemes in Ireland.

The structure enjoyed positive net inflows every month since its establishment, according to Irish Funds, the representative body for the cross-border investment funds industry in Ireland.

The ICAV now sits alongside the public limited company (plc), as a tailor-made corporate fund vehicle for both UCITS and Alternative Investment Funds (AIFs). The majority of the new funds formed under ICAV have been AIFs, Irish Funds noted. 

“The ICAV was a hugely positive development for the Irish funds industry, and these figures only reinforce the success of this legislation,” said Pat Lardner, CEO at Irish Funds, in a statement. “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 ICAV legislation was drafted with the specific needs of investment funds in mind, and has the advantage of being unaffected 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 U.S. investment manage Permal Group, said Irish Funds.

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