Investment Fund Services
Providing a range of independent AIFM and UCITS fund solutions to investment managers.
Why Choose Davy Investment Fund Services
We use highly experienced teams of regulatory and investment professionals drawn from a number of entities within the Davy Group. This provides us with a valuable insight into what will and will not work from both the fund provider and the investor’s perspective. As a result, we are well placed to advise clients on the structure, regulatory considerations, service providers and marketing approach relative to their funds.
Our fee structure is generally based on the premise that we are rewarded only after the fund has been successfully launched – in our view there is no better way of aligning our interests with those of our client.
We have been involved with regulated investment funds for over 15 years. In that time we have established relationships with all of the main service providers in Ireland and as a result we are in a position to leverage these relationships for the benefit of our clients.
For clients who require guidance in relation to establishing an Irish regulated fund we are in a position to advise and assist with the following:
- Advice on fund structure whether UCITS (‘Undertakings for Collective Investment in Transferable Securities’) or AIFs
- Selection of, and introduction to, local tax and legal expertise
- Sourcing an investment manager
- Services negotiation with fund administrators and custodians
- Co-ordination of fund documentation and regulatory approval process
- Assistance and Advice on Irish Stock Exchange listing
- Sourcing a Money Laundering Reporting Officer (‘MLRO’)
Davy Investment Fund Services (‘DIFS’).
AIFs are required to comply with obligations under AIFMD. AIFs seeking to outsource AIFMD requirements can appoint DIFS to act as an external AIFM in order to meet their obligations.
DIFS will provide tailored solutions to meet the objectives and regulatory requirements for individual Alternative Investment Funds.
DIFS was authorised as an AIFM by the Central Bank of Ireland on the 22nd July 2014.
Your Investment Manager
Irish regulated funds are required to appoint an Investment Manager who is authorised by the Central Bank of Ireland. Both Davy and Davy Asset Management are experienced investment managers and have been appointed to act as investment managers to a number of investment funds. Davy and Davy Asset Management manage a wide range of alternative asset classes including real estate, private equity, life settlements and hedge funds.
Third party investment advisor
In many cases a third party Investment Advisor will be appointed to advise the Investment Manager on potential opportunities. This commonly occurs where the fund invests in alternative assets such as real estate, private equity and hedge funds. While the Central Bank of Ireland does not seek an Investment Advisor to be a regulated entity, their appointment is subject to the Investment Manager retaining full discretionary powers in relation to decisions concerning a fund. The appointment of an Investment Advisor is subject to certain notification requirements set out by the Central Bank of Ireland.
Investment management duties
The duties an Investment Manager performs can be outlined as follows:
- Manage investments in line with objectives and restrictions outlined in the Prospectus
- Liaise with Investment Advisor on asset acquisitions and disposals, where appropriate
- Liaise with independent asset valuers
- Annual filing/audit of fund for the Central Bank of Ireland
- Report regularly on performance and strategy
Davy Asset Management acts as the promoter and distributor of the Skyline Umbrella Fund plc (the ‘Platform’). The Platform provides entities and individuals with an established structure to create a UCITS (‘Undertakings for Collective Investment in Transferable Securities’) compliant sub-fund.
The Platform caters for those who are seeking a solution to a client need or market-led request for a UCITS offering, where the outlay of resources associated with launching and maintaining a fully fledged in-house UCITS may not be viable.
Those seeking to set up a sub-fund on the Platform must meet certain conditions set out by the Board of Directors of the Platform and the appointed Investment Manager must be approved by the Central Bank of Ireland.
Key features of the UCITS platform
- Simple, transparent umbrella structure easily communicated to investors
- UCITS regime understood by and accessible to investors across the EU
- Segregated sub-fund with separate documentation and accounts
- Project management of product launch minimised
- Established Board of Directors and corporate governance regime in situ
Investment Managers may consider listing their fund on the Irish Stock Exchange for the following reasons:
- Broader Distribution: many institutional investors can only invest in securities listed on a recognised stock exchange
- Quoted Market Price: many institutions need to ‘mark to market’ their security holdings
- Tax Benefits: certain jurisdictions provide exemptions for investments in listed securities
- NAV ('Net Asset Value') Publication: an Irish listing can inexpensively satisfy UCITS NAV publication requirements
- Enhances Credibility: listing enhances the attractiveness of a fund in the market place
- Offers Prestige and Transparency: the Irish Stock Exchange’s long established and recognised reputation
- Cost Benefits: listing within three to six weeks is possible and at a reasonable cost
We are the leading sponsoring broker to investment funds and one of the leading listing agents for asset-backed securities, debt securities and derivative securities on the Irish Stock Exchange plc trading as Euronext Dublin. Davy is one of only three sponsors to be represented on the Irish Stock Exchange Investment Funds Listing Committee, the body charged with approving policy updates and listing rules.