Ireland’s ICAV vehicle sees 1st-year inflows of €8.4bn

Investors poured some €8.4bn (US$9.5bn, £6.6bn) into funds held in Ireland’s Irish Collective Asset Management Vehicle structure in the ICAV’s first 12 months of existence, the Irish Funds Industry Association revealed on Wednesday.

The money was invested in the more than 157 new funds that have been registered through the ICAV structure in the year to the end of March, the IFIA, which represents Ireland’s cross-border investment funds industry, said.

The ICAV is a new, Ireland-only corporate structure that was set up to improve the efficiency and accessibility of  Irish investment funds. A bill setting out the legal framework necessary to permit the ICAV structure to be formally introduced into Irish law was hammered out in 2013, with the final legislation coming into force in March of 2015.

Today, the IFIA said, the ICAV “sits alongside the public limited company as a tailor-made corporate fund vehicle for both UCITS and alternative investment funds (AIFs)”.

Most of the new funds launched via the ICAV have been AIFs, the IFIA noted.

Irish Funds Industry Association chief executive Pat Lardner said the ICAV has been a “hugely positive development for the Irish funds industry”, and that the inflow data “only reinforce[s] the success of this legislation”.

Among its attractions, he noted, is that the ICAV helps to enable fund managers keen to domicile their funds in a regulated onshore jurisdiction to do so, “particularly through AIFs and UCITS”.

Lardner said interest in the ICAV had been expressed from around the globe, and that the Irish funds industry is expecting the interest “to continue in the coming months and years”.

Among the fund managers that have registered funds through the ICAV structure have been UBS Hedge Fund Solutions and Permal Group, a US investment fund manager.


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