QIFs back in fashion among Ireland's fund administrators

Launching a Newcits fund is so 2010. If Ireland's fund administration professionals want to locate themselves near a real growth area, they should look towards the increasing predilection for qualified investment funds (QIFs).

QIFs have, of course, been in Ireland for some time - since 2002, to be exact - but it's only recently that they've seen a resurgence in popularity.

More hedge funds are looking to re-domicile onshore hedge funds in the EU under the requirements of the AIFM Directive. But while last year this led to an increasing number of Ucits funds, this year more managers are considering launching QIFs and Luxembourg specialised investment funds (SIFs), according to research by RBC Dexia Services and KPMG.

Tom Brown, EMEA head of investment management for KPMG, said that they offer "flexible liquidity and transparency rules for hedge funds" and that the wholesale shift towards an alternative Ucits fund, predicted by many last year, "has not taken place".

In 2010, Irish-domiciled QIFs increased by 35% to €152.8bn, according to figures from the Central Bank of Ireland.

While there hasn't been a sudden surge in roles related to the administration needs of QIFs in Ireland, an increasing number of firms are recruiting for jobs related to more complex hedge fund products, suggest recruiters.

"Boutique fund administration houses, rather than the larger players, have been recruiting for business development and fund administration roles related to complex portfolios," says Erika Skelly, principal consultant at Irish recruiters Careers Register. "It's a very numerical role, and product exposure combined with an ACA is usually required."

Still, anyone working on these products should expect to be paid a premium. Kelly suggests that junior fund accounting manager earns €65-70k, rising to €80-100k at the senior end. Business development positions pay closer to €90-110k, she says.