Saturday 16 December 2017

Opportunity for Ireland to emerge as top location for hedge funds

Thomas Molloy

DEUTSCHE Bank has created a new study looking at the best locations to base hedge funds.

The study, which was commissioned by the bank's London office and written by Pricewaterhousecoopers (PWC), compares Ireland with the Cayman Islands, Malta, Luxembourg and the UK.

While the Cayman Islands are the home of most of the world's hedge funds, thousands of funds are considering moving elsewhere as investors and governments continue to fret about the regulation of funds in some parts of the world.

While the Cayman Islands is the domicile of choice for most funds, Ireland is a centre for fund administration, with 40pc of all the world's hedge fund assets administered here.

"This is a very big opportunity for Ireland," said the report's co-author Olwyn Alexander, a partner of PWC and hedge fund expert, who said "we are very competitively placed" to become the new domicile for funds moving from the Cayman Islands.

The new study makes no recommendation but is aimed at helping fund managers decide where to locate new funds.

"There's no right answer," said Ms Alexander. "The decision depends on things like the fund's strategy."

Financial services are a vital part of the Irish economy, contributing about 7pc of gross domestic product, compared with 4.5pc in Britain and 2pc across the European Union, the in-coming International Financial Services Centre's representative John Bruton said on Wednesday.

Irish Independent

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