The proportion of the worlds hedge funds domiciled in Ireland doubled to 7.4% by the end of the third quarter of 2010 from the end of 2009, according to the Irish Funds Industry Association (IFIA).
The new figures reveal that Ireland is far outpacing all European domiciles and is now home to 63% of all European hedge funds.
Beyond Europe, Ireland as a domicile for hedge funds has now overtaken Bermuda and the British Virgin Islands, according to the latest information from Hedge Fund Research (HFR).
“A lot of firms that previously offered funds that were structured to onshore US investor are increasingly considering registering or redomiciling in the European Union to tap investors there,” said HFR’s President Ken Heinz.
Gary Palmer, IFIA CEO, adds: “As investors demand increased regulation from their investment products, the industry in Ireland responded with regulated solutions, opportunities and efficiencies. Being the first international jurisdiction to provide a regulated hedge fund product, together with the experience of the largest hedge fund administration center and the facilitative legal framework to effect funds redomiciling, Irelands excellence, innovation and international reach has been able to support the international industry develop its business.”
Assets of Irish-domiciled funds reached an all-time high of 906 billion as of October, higher than the 808 billion at the peak of the market in 2007, according to the IFIA. Also, 747 new funds and sub-funds were launched in Ireland between October 2009 and September 2010, and more than 70 new fund promoters launched Irish funds in the past year.