For external investors, Micropal lists only four funds within its offshore territories universe that invest specifically in Ireland.
CMI offers two, both Irish equity funds, one run from Luxembourg, the other from the Isle of Man. The Luxembourg fund has grown by 91% over three years, while the other has put on 84% in the same period. Bank of Ireland and AIB Grofund market offshore currency funds investing in Irish punts, based on the Isle of Man and Jersey respectively.
There is a more active market in Irish exempt funds. In the past year, domestic group pension managed funds have achieved a creditable average return of 42.7%, according to Mercer’s most recent figures. Top performers include Allied Irish Pension Managed, Equitable Exempt Pension Management and Irish Progressive Exempt Managed.
In Mercer’s annual survey of pooled funds for pension schemes, Montgomery Oppenheim produced the best return of 41%, closely followed by Equitable Life, Norwich Union, ESBFM and Eagle Star. Eagle Star ranks first for the five-year term, with 24%, ahead of the 20.5% average. For the 10-year period, Bank of Ireland tops the league with 15% per annum against the average 14% and 2.6% price inflation.
Looking at the asset allocation of offshore funds with a European focus, Ireland is typically held in the 0–5% range, although occasionally a manager will break with that. One such is Rory Powe, manager of Invesco’s European warrant fund. He has 13% of the fund in Irish stocks, including a significant stake in Bank of Ireland.
The Irish stock market produced a 51% return in 1997. Stock with heavy exposure to the economy, particularly construction, led the advance.