Ireland has a long and well-established reputation as a fund jurisdiction of choice for a number of reasons. Across the Irish funds industry and government, management companies (ManCos), lawyers, administrators, custodians and auditors all strive to ensure a united and consistent approach when it comes to delivering Irish product.
At Gateway Fund Services (GFS), we believe there are a number of reasons for the continued success of the Irish ISIN.
1. Culture & people
Ireland has a strong work ethic, is adaptive and innovative, with us also being culturally aligned to a number of our closest partners. Significant investment has been made in the funds industry, nurturing talent across front, middle and back-office activities. Ireland offers native English speakers and a focused mindset which resonates with investment managers and distributors. Service providers here are well established and mindful of time differences and client pressures, culturally we are a flexible and agile workforce, which is renowned across the globe.
2. Connectivity
With board members expected to attend in person at a minimum once a year, Ireland offers great connectively with the US, UK and Europe. Ireland offers direct routes to the US, with border control handled on both sides of the water too. Passengers can also travel to and from the UK and Europe as a day trip if desired, with multiple flights every day.
3. Expertise
Ireland is well known for our leading ETF industry, including the growth in active ETFs, something which emerged from our fast and efficient back-office capabilities. Ireland continues to excel in the field and has now surpassed over $2 trillion in AUM with over 75% of the European ETF market.
Outside of ETFs, Ireland competes strongly on managed funds including traditional ‘long only’ products through to complex alternative strategies, with promoters continuing to select Ireland as their domicile of choice. Service providers have chosen to invest in Ireland, with new players, large and boutique, establishing offices here in addition to the well-established firms bolstering their presence locally.
4. Fees
With fee pressure effecting both investment managers and service providers, Ireland continues to offer a commercially competitive environment for new products. Ireland offers a quality service, as the market endeavours to exceed expectations while being cognisant of ensuring ongoing costs are value for money for investors.
5. Speed to market
Key to investment managers and distributors is speed to market, so that they can capture live opportunities. As such, the Central Bank of Ireland (CBI) service levels for UCITS authorisations can guide timelines, whereas the AIF 24-hour approval can give certainty as to the timing of launches.
6. Distribution
Launching funds in Ireland offers distributors the ability to market globally, with the Irish ISIN being well recognised and respected for regulatory excellence. At GFS, we continuously seek to enhance our distribution support model, as ever-changing regulatory environments have resulted in our partners seeking our expertise, ability to deliver on time , our connectivity and network to support their distribution activities.
Fund registration and passporting can be an issue when it comes to distributing, as cross border registration can be costly, time consuming and confusing. GFS manages both the European passporting process and registrations further afield for our clients, ensuring adherence to local requirements at all times, whist also reducing operating costs.
As managers seek to launch funds, Ireland as a jurisdiction opens their products to multiple markets through well versed distribution channels.
