Ireland Mulling Creation Of Tax Transparent Vehicle For Hedge Fund Investment

by Carla Johnson, Investors Offshore.com

19 July 2004

The Irish Financial Services Regulatory Authority and the Dublin Funds Industry Association are currently examining the legal and tax aspects of the planned creation of a tax transparent pension vehicle which would allow investment in alternative asset classes, such as hedge funds.

Following the creation of the Common Contractual Fund (CCF) last year to attract the pension business of multinationals, the next logical step, according to the DFIA, was to create a non-UCITS (Undertakings for the Collective Investment of Transferable Securities) version of the product.

Speaking to the Investments and Pensions Europe news service on behalf of the Funds Industry Association, Paul Dobbyn explained that:

"We have always known that once we created a UCITS CCF there would be a demand for a non-UCITS CCF as we know that the former has investment strategies which are more restrictive and conservative."

He went on to add that the new product, if approved by the Irish Parliament, will not necessarily be used as a device to lure investors from rival jurisdiction for pensions business, Luxembourg, explaining that:

"This is a quite unique product, designed for multinationals."

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