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Irish Funds Seminar

San Francisco

5 November 2015

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Chair, Irish Funds, State Street Global

Tadhg Young

Welcome

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Dillon Eustace

Dan Forbes

Opportunities that Ireland offers asset managers & why ICAV is the structure of choice for US investment managers

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Why Ireland for Funds?

• Regulated environment: EU and OECD

• More than 25 years’ experience and expertise

• Support structure of over 13,000 professionals

• Robust and efficient regulatory framework

• Most favourable tax environment for funds

• High quality, business friendly environment in optimum time zone

for global coverage

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Source: Central Bank of Ireland, March 2015

Breakdown of Irish Domiciled Funds

Total Assets of Irish Domiciled Funds – US$ Billions

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Why Ireland for US Managers?

• Strong cultural and historic ties

• Common language

• Common legal system

• Location and ease of access

• Gateway to Europe and rest of World

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World Class Service Providers

• Over 50 service providers in Ireland providing custody and

administration services

• Many US institutions with operations in Ireland

• Northern Trust

• BNY Mellon

• State Street

• Citi

• JP Morgan

• Brown Brothers Harriman

• SEI

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• 455 Promoters/Managers of

Irish Domiciled Funds

• Majority US based (by AUM)

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World Class Service Providers

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Representative List of US Promoters/Managers

• BlackRock

• PIMCO

• Goldman Sachs

• Vanguard

• State Street

• Russell Investments

• BNY Mellon/Dreyfus

• Northern Trust

• Neuberger Berman

• SEI

• Legg Mason

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Regulatory Environment

• Openness, transparency and investor protection

• Robust and efficient regulation

• Central Bank of Ireland – approves parties involved and products

• Pre-defined timeframes for product authorisation

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Product Range – UCITS & Non-UCITS

UCITS

• Undertakings for collective investment in transferable securities

(“UCITS”)

Non-UCITS

• Otherwise known as Alternative Investment Funds (“AIFs”) under

AIFMD

• Retail (“RIAIFs”)

• Institutional (“QIAIFs”)

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Legal Structures

UCITS

• Investment Company established as a public limited company (“plc”)

• Irish Collective Asset Management Vehicle (“ICAV”)

• Unit Trust

• Common Contractual Fund (“CCF”)

Non-UCITS/AIFs

• All of the above + Investment Limited Partnership (“ILP”)

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Manufacturing Menu

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Investment Policy /

Objectives

Leverage

Borrowing

Dealing Frequency

Distribution

Tax

Regulated

UCITS

Non-UCITS

(RIAIFs and QIAIFs)

Investment Company

Unit Trust

Common Contractual Fund

Investment Limited Partnership

ICAV

Promoter/Manager

Requirements

Products Legal Structures

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What type of fund?

Summary comparison of AIFs versus UCITS under a number of criteria

AIFs UCITS

Investors Professional Retail and Professional

Investment Restrictions Generally NoYes (incl. fortnightly

redemptions)

European Passport Yes Yes

Global Distribution NoRecognised in many non-EU

markets

Brand Recognition Early stages Gold Standard Brand

Min Subscription Amount Yes - €100,000 No

Access to Double Taxation

AgreementsYes Yes

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Environment Epitomised by Innovation

• Product solutions to accommodate strategies from long only to

complex

• Money Market Funds

• Exchange Traded Funds

• Alternative Funds

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Product Innovation

Money Market Funds

• Early adopter of Rule 2a-7 in 1990s

• Ireland leading European domicile for money market funds

Exchange Traded Funds

• ETFs first introduced in US in early 1990s - end 2014 assets at

US$1.9 trillion in 1,380 ETFs

• First European ETF structured as Irish UCITS in 2000

• End 2014 assets at €438.9 bn in 1,418 European ETFs

• Ireland represents 50% of European ETF Market

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2020

Alternative Funds

• Considerable expertise in servicing alternative products

• Ireland administers 40% of global hedge fund assets

• Ireland first EU country to issue its rule book on AIFMD

• Combined with UCITS expertise well placed to accommodate

UCITS pursuing “alternative strategies”

• Marked increase in AIF assets

• up 35% in 2014

• up 15% to July 2015

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Global Reach

• Irish Funds distributed in over 70 countries worldwide

Europe – Americas – Asia/Pacific Rim – Middle East – Africa

• 455 fund promoters from over 50 countries use Ireland to

distribute Funds

• Member of EU, Eurozone, OECD, FATF and IOSCO

• Extensive tax treaty network – over 70 countries

• MoUs with 46 jurisdictions

• 30 languages supported in the industry

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Contact

Daniel Forbes

Dillon Eustace

U.S. Representative Office

245 Park Avenue, New York, NY 10011, USA

Telephone +1 212 792 4166

Website: www.dilloneustace.ie

Dublin Cayman Islands Tokyo New York Hong Kong

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Moderator:

Panellists:

Panel Discussion

Ireland as domicile of choice for alternative fund managers

Dervilla Lannon, Blackrock

Tom Mistele, Dodge & Cox

Pritesh Patel, Fisher Investments

Rosaleen Carey, PwC

Damian McAree, Capita

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Irish Funds

Kieran Fox

Closing remarks

Thank you

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