Irish funds see highest net inflows in Europe

Net inflows into Ireland were higher than any other European domicile in the first half of the year.

Irish funds see highest net inflows in Europe

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In its latest quarterly report Efama revealed that Ireland recorded net inflows of €39bn in the first half, which was €7bn more than the next highest domicile.

The second quarter of the year in Ireland witnessed inflows of €26bn, up 1.5% on the first quarter.

In contrast, all other domiciles experienced decreases in net assets during the second quarter, with total Ucits net assets down 0.5% for the period.

The country’s total market share has now increased to 13%, up from 11.5% in the same period last year.

Gary Palmer, chief executive of the Irish Funds Industry Association, said: "The statistics are not altogether surprising as Ireland has been synonomous with cross-border Ucits since their inception under the 1985 Ucits directive.

"Over the past ten years the net assets of Irish Ucits have grown by 422% – an unbeaten track record."

Meanwhile, total inflows into Ucits amounted to €48bn in the first half of the year, slightly lagging the €55bn posted in the same period in 2010.

Efama said this reduction was due to a stream of events, from the Arab uprisings and the Japanese earthquake, to concerns about sovereign debt risk, which affected investor confidence.

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