The Luxxies are coming to town

A growing number of Luxembourg's fund specialists are opting to develop their careers in Dublin. Why?

At first sight, Dublin doesn't have much to offer over its Continental European rival. With a massive €1.7 trillion in assets under management, Luxembourg stands head and shoulders above its Irish rival, which managed a 'mere' €653bn of assets as of July.

But while both locations have experienced significant growth in the number of

funds and assets over the past decade, growth in Ireland is now outpacing that of

Luxembourg. Between 1995 and 2005, fund assets domiciled in Ireland and

Luxembourg grew 31 times and six times respectively, according to a recent

KMPG report.

It's also down to hedge fund administration. "Dublin's hedge fund sector is bigger than Luxembourg's, so people working in mutual funds in Luxembourg looking for hedge fund experience come here," Clara Gough, fund administration consultant at Robert Walters told us.

The Irish capital is also more attractive to East European fund specialists, who are more likely to speak English than French (the business language of choice in Luxembough), said Gough.

The two locations have several things in common, however. "Both cities are experiencing the same staffing problems, especially for people with one to two years' experience in the industry," said Gough. "Globally, there are not enough people to facilitate the growth the industry has seen over the past 18 months."

The recruitment agency set up an Internet forum in January linking Dublin

with London and Luxembourg to increase exchange of information between the

offices and speed up the flow of talent between the three cities.